Topic: Is this for real? Glad I don't own one...

[Schmengie]

I've heard of depreciation, but wow! - almost $60,000 in two years, and the car's only got 9500 km's on it!    I can't imagine the hit the previous owner took when he traded this little gem in. I find it amazing that people can throw away money like this and apparently think nothing of it. 

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[TopGun]

It's all relative I suppose...

I'm sure someone making minimum wage and cannot afford a car thinks trading in a car every 4 years and losing $20,000 in depreciation may have the same reaction to many folks on this board.

[Schmengie]

It's all relative I suppose...

I'm sure someone making minimum wage and cannot afford a car thinks trading in a car every 4 years and losing $20,000 in depreciation may have the same reaction to many folks on this board.

Your point's well taken, but it makes no sense to me why ANYONE does that. Trading in cars in every couple of years just because is pretty stupid IMHO because that's when they depreciate most - you might as well burn that money.  I've always kept my cars for a long time to get the most value from them and only traded them in when I really needed to, so I consider depreciation simply as part of the cost of ownership, like gas and maintenance. 

[johngenx]

...so I consider depreciation simply as part of the cost of ownership, like gas and maintenance. 

It's typically the single largest expense in operating a motor vehicle.  The best way to mitigate the expense is to buy used, and if new, buy inexpensive models that hold their value well.  Luxury brands are killers.  I knew a fellow with an Audi A8, and the depreciation was unreal.  Incredibly, he sold it for about the same as a similar year Accord would sell for, despite the $100K original price.

[Triple Bob]

It's all relative I suppose...

I'm sure someone making minimum wage and cannot afford a car thinks trading in a car every 4 years and losing $20,000 in depreciation may have the same reaction to many folks on this board.

Your point's well taken, but it makes no sense to me why ANYONE does that. Trading in cars in every couple of years just because is pretty stupid IMHO because that's when they depreciate most - you might as well burn that money.  I've always kept my cars for a long time to get the most value from them and only traded them in when I really needed to, so I consider depreciation simply as part of the cost of ownership, like gas and maintenance. 

Surely if you can afford it why not?  Everyone has a different perception of what is expensive and what is not.  For some having a brand new SL is worth the loss when it comes to selling it.  When you buy a new model brand new, you see very few on the road, it's the exclusivity that people pay for.

[Craig]

Your point's well taken, but it makes no sense to me why ANYONE does that. Trading in cars in every couple of years just because is pretty stupid IMHO because that's when they depreciate most - you might as well burn that money.  I've always kept my cars for a long time to get the most value from them and only traded them in when I really needed to, so I consider depreciation simply as part of the cost of ownership, like gas and maintenance.

Your approach is very smart financially, but for those who have too much money, why not?  I'm certainly not going to lecture anyone who can afford an SL500 on finances.  So they spend money on cars - if you can afford it, more power (literally) to you.

[dr_spock]

Some people have money to burn and don't care about depreciation.  It is kind of nice driving a car not many other people on the road are driving.

[initial_D]

 When people have 100's of millions, spending 1 or 2 million for fun means very little.

[safristi]

  U takin' ta ME...PUNK.....

[xviper]

"You get what you pay for."  So I've been told.  What did the first guy get for $60K that the next owner didn't get?  Theories of relativity aside, what did those 60 large buy the first owner?

[initial_D]

The ability to park a $150,000 vehicle in his garage ... and show people he has the money to do it.

[xviper]

"The ability to park a $150,000 vehicle in his garage ... and show people he has the money to do it."

That's not good value for me, but I guess if you can light a cigar with a hundred dollar bill, it is worth it.  But that's getting into "things are relative".  Isn't there a term that can be applied to such a material possession?  The word just escapes me for the time being.   

[Zoo]

$60000 is a huge expense even if you are a multi millionaire. Perhaps if you can write off part of the vehicle it can offset this a bit. Then again some people spend tens of thousands of dollars on golf and other of life's luxuries. Like others I would snag a 2-3 year old model and appreciate the savings. For others the allure of a brand new luxury auto built to their requests is a Siren call that cannot be avoided.

The funny thing is that many of these folks will be the same one beating me up over a few dollars on a medical device I am trying to sell them or cross shopping a TV to save a few $s; then lose tens of thousands of dollars in depreciation!

[Arctic_White]

Wouldn't it have been cheaper for the guy to lease it for 2 years?  Payments couldn't have been more than $2,000 a month...  that's $48,000 in 2 years, as opposed to $60,000 depreciation hit. 

[initial_D]

"The ability to park a $150,000 vehicle in his garage ... and show people he has the money to do it."

That's not good value for me, but I guess if you can light a cigar with a hundred dollar bill, it is worth it.  But that's getting into "things are relative".  Isn't there a term that can be applied to such a material possession?  The word just escapes me for the time being.   

Forget Paris?

[initial_D]

$60000 is a huge expense even if you are a multi millionaire. Perhaps if you can write off part of the vehicle it can offset this a bit. Then again some people spend tens of thousands of dollars on golf and other of life's luxuries. Like others I would snag a 2-3 year old model and appreciate the savings. For others the allure of a brand new luxury auto built to their requests is a Siren call that cannot be avoided.

The funny thing is that many of these folks will be the same one beating me up over a few dollars on a medical device I am trying to sell them or cross shopping a TV to save a few $s; then lose tens of thousands of dollars in depreciation!

Most people with expensive cars I know own business(es), and the vehicle expenses does not come out of personal accounts.

[xviper]

Forget Paris?

Pretty tough to forget Paris.  The image of her bobbing up and down riding the corn dog express is quite memorable.  Aside from all of this, we all know what Paris is all about, eh?

[Mitlov]

Surely if you can afford it why not?  Everyone has a different perception of what is expensive and what is not.  For some having a brand new SL is worth the loss when it comes to selling it.  When you buy a new model brand new, you see very few on the road, it's the exclusivity that people pay for.

This year, I blew a few hundred dollars on a video game system and video games.  They have catastrophic depreciation and no redeeming social value.  Some would see that as a total waste.  But so what?  It's my money, I could afford it, and it was fun for me.  This is the same thing, for someone who has a lot more money.

[Ex-airbalancer]

Maybe it was a Markus Naslund car, signing with the Rangers, he will not need a car in the big Apple

[Snowman]

Surely if you can afford it why not?  Everyone has a different perception of what is expensive and what is not.  For some having a brand new SL is worth the loss when it comes to selling it.  When you buy a new model brand new, you see very few on the road, it's the exclusivity that people pay for.

This year, I blew a few hundred dollars on a video game system and video games.  They have catastrophic depreciation and no redeeming social value.  Some would see that as a total waste.  But so what?  It's my money, I could afford it, and it was fun for me.  This is the same thing, for someone who has a lot more money.

Exactly, I find it quite amusing when people complain and judge other people spending priorities without understanding the individual’s situation, very immature.