Depreciation anyone?

Let's have some fun with this, and do a little calculation!

 

There is a 7-year old Murcie on ebay for $106K. Price dropping like a rock.

 

7-year old car, depreciating an average of $3K per month! That is about a $250K bath that someone took on it, if the car started at near $350K.

 

So it only cost you $7 per mile to drive her.

So that may have been a $100 Starbucks coffee run you went on if there is not one around the corner from you..

It may have cost you $50 just for the drive to a service station and back, BEFORE you put any gas in.

 

A limo per mile with a private chauffer for hire costs less....

 

You could have wiped your rear end with dollar bills over this 7-year period, and still be way ahead of the depreciation.

 

To really put it into perspective: It would actually take you 95 years to go through 350,000 dollar bills if you used 10 per day.....

 

Or 9 years if you used $10 bills for the same purpose. You are still ahead of depreciation at this point!

 

Still want that new Murcie?

 

 

I've always had in my head exotic cars are a "hobby" not an "investment."

I hate it that you can not edit your own post.

 

I meant to say:

 

To really put it into perspective: Compared to the depreciation of $250K, it would actually take you 68 years to go through 250,000 dollar bills if you used 10 per day.....

 

Or about 7 years if you used $10 bills for the same purpose. You are even at this point! The car is depreciating at $100 per day.

 

Kind of like a bad crack habit...Yes, very expensive hobby...but we are all addicts.

I hate it that you can not edit your own post.

 

You can.

yes you can do all those things and be in the hole. You could also invest your money in a 5% cd and be ahead. But thats really not the point.....is it.

Calculation is a bit off. That car was only 261k when it was new in 2002 and about 268 in 2003. They hit 281k in 2004 and broke 290 with E Gear introduction. In 2005 the car busted the 300k mark with E Gear and in 2006 coupes could hit north of 320k. They did not hit the 350k range until 2007 with the LP 640. The guys that really took it hard are the guys that bought new Roadsters in 2005 and 2006 as that car was 340k and now trading in the 170k range give or take. The guys that REALLY took it hard though are the guys that bought the LP 640 when it came out, paid up to get it, and the car is trading in the upper 100k to low 200k range. IT was not unheard of for someone to pay 400k for a coupe in the beginning of 07.

Wrong way to look at exotic ownership. To really put things in perspective, investigate yacht ownership.

 

Regardless though, I've never been hosed on an exotic, on the contrary, I've always done well.

But if you buy that used Murci today.. you can drive it forever and not lose a dime...

But if you buy that used Murci today.. you can drive it forever and not lose a dime...

 

i also think at 100k it could be a safe buy or almost (and a lot of fun)

 

i can see them going even under 100k$, but not much under...

even in worst case not under 70-80k $ honestly

 

p.s. with exotic cars you can lose money or make, either ferrari, lamborghini, porsche, Maserati...

 

p.p.s. if you want a fun and almost safe buy, get a rare old exotic (993 RS or GT2, SE30 or GT diablo, factory slant nose porsche...)

Wrong way to look at exotic ownership. To really put things in perspective, investigate yacht ownership.

 

Regardless though, I've never been hosed on an exotic, on the contrary, I've always done well.

 

Excuse my complete ignorance on boat ownership, but I always thought that boats maintained value, if not appreciated at times? Similar to a plane, the ownership costs are horrendous, but the actual value stays high?

 

 

Ok, my purchase price numbers on a new US urcie are a bit off. I was using Canadian prices, and I did not realize the US prices were that much radically lower.

 

What Albofax says about boats is true. At least powerboats like the one in his avatar. They depreciate as fast or fater than cars, and the actual $ (not percentage) is what is staggering, since the initial buy costs are often in the high 100's of thousands or low millions. The dollar hit is huge on depreciation.

 

Good points on buying a used car. That is what I am of course suggesting by this tongue-in-cheek exercise. There is much less depreciation on a used G or Murcie. It is that AVERAGE depreciation on a new car, that kills you due to the high initial 20%+ 1st year depreciation.

 

QUOTE (carbuff @ Nov 8 2009, 10:07 AM)

I hate it that you can not edit your own post.

 

You can.

 

Cool. How do you do this? The edit button disappears if I go off the thread with the new post that I just added. When I go back to that thread, the edit button is gone. Even if I do it within a couple of minutes.

Cool. How do you do this? The edit button disappears if I go off the thread with the new post that I just added. When I go back to that thread, the edit button is gone. Even if I do it within a couple of minutes.

 

I can edit my posts all the time. I don't know why your button disappears

 

But if you buy that used Murci today.. you can drive it forever and not lose a dime...

I agree, a car of that caliber, probably has a floor of about 90-100k. Limited production makes it liable to start going back up over the NEXT 10years...Just look at the Diablos (and there are MANY versions of those since '92-'01), not nearly as many editions of Murcie...

I agree, a car of that caliber, probably has a floor of about 90-100k. Limited production makes it liable to start going back up over the NEXT 10years...Just look at the Diablos (and there are MANY versions of those since '92-'01), not nearly as many editions of Murcie...

Murcis may not have had as many variences through the years, but production is more than double that of the Diablo.

Murcis may not have had as many variences through the years, but production is more than double that of the Diablo.

Really?? I didnt know that, I just assumed, a longer model run, many variances, etc....

 

Do you know the numbers?

The only numbers I ever think about when it comes to cars are the performance ones. There hasn't been a car made in the last 20 years that you will not lose something on.

Diablos=3500+/-

 

Murcis= arent they still making them?

Diablos=3500+/-

 

Murcis= arent they still making them?

 

up until now, how many per year? Anyone know?

up until now, how many per year? Anyone know?

 

I believe the Murci production numbers are just north of 3,000 total from 2001 up to the new SV.

up until now, how many per year? Anyone know?

searching for real production numbers is like trying to get the access to code to Fort Knox. I cant find it anywhere.

7 years of driving a lamborghini every day sure sounds like a GREAT 7 years of your life! 9 years of 10 $10 bills a day sounds boring. My life on earth is finite, why not make the most of it?

 

If I was worried about depreciation, I would be a lot less happy. Why be less happy?

 

Jonah

 

Let's have some fun with this, and do a little calculation!

 

There is a 7-year old Murcie on ebay for $106K. Price dropping like a rock.

 

7-year old car, depreciating an average of $3K per month! That is about a $250K bath that someone took on it, if the car started at near $350K.

 

So it only cost you $7 per mile to drive her.

So that may have been a $100 Starbucks coffee run you went on if there is not one around the corner from you..

It may have cost you $50 just for the drive to a service station and back, BEFORE you put any gas in.

 

A limo per mile with a private chauffer for hire costs less....

 

You could have wiped your rear end with dollar bills over this 7-year period, and still be way ahead of the depreciation.

 

To really put it into perspective: It would actually take you 95 years to go through 350,000 dollar bills if you used 10 per day.....

 

Or 9 years if you used $10 bills for the same purpose. You are still ahead of depreciation at this point!

 

Still want that new Murcie?

 

Ford GT's seem to have held their value well.

 

Having said that I try not to think about depreciation otherwise every mile I drive can be painstaking instead of euphoric. I went into this saying if I sell it within x years I'll have paid x dollars to enjoy the car. To me, "losing" 20-30k is worth every dime. Otherwise I'd just spend it on a bus pass and save all my money.

Ford GT's seem to have held their value well.

 

 

I drove mine for 2 years, put 9300 miles on it (from new) then sold it for $30k over what I paid for it. They're not holding up as well as they were when I sold, but they're not that far off.

My first Lambo experience was in Japan, a friend of a friend owned a stunning white Diablo SV, he gave me the keys and I went for the best ride of my life

 

Being curious to find how how much these cars would cost to run, I asked him how much fuel does the car waste, he looked at me and said:

 

"No idea, I fill it when it's empty!"

 

from that point on I understood what exotic ownership is about, people that can genuinely afford these cars do not care about insignificant things such as depreciation, fuel consumption, servicing etc they just buy them have a blast and move on.

 

You might make on some you definitely loose on most but honestly who gives a shit?

 

I am willing to bet that most smokers out there will burn close to Lambo depreciation $ yearly.