[baege]

So this thread was prompted by CP911's post in the another thread about how the move from a 911 to m240i is one he is happy with.

The most I've spent on a car so far is about 80K CDN. As of late, I have been contemplating a move to some considerably more expensive cars in the 140 to 180K range.

But I do wonder if the extra expense will bring a return that makes it worth doing.

The biggest jump I previously made was from a 2007 Z4 coupe that I got CPO 2 years old for about 40K cdn to a 2014 Cayman S that cost me about 80K cdn.

I had the z4 4 years and it only cost me 16k in depreciation over those 4 years. I had the cayman 2 years and it cost me about 16k in depreciation in those 2 years.

So was the cayman worth the extra 4 k a year, or about $350 a month more than the Z4? Tough to say...certainly when I first got it, the cayman was an absolute blast and brought me more driving enjoyment than I had ever experienced before. But once things normalized, was it really $350 more enjoyable than the Z4? I am not so sure. They are both pretty fun cars to drive.

The move I am currently contemplating will probably cost me about 12K more a year in depreciation and maintenance costs than the m240i or about $1000 more a month, you can do quite a bit with $1000 a month even in this day and age.

So for those who have made the jump to much more expensive cars? Was it worth it?

[Grumpy Old Man]

An interesting way to look at it. Very few cars will do anything but depreciate, that plus maintenance and operating costs. I don't think I have ever bought a car worried about depreciation. I always go in looking at my ability to afford it vs want and need. My DD is something I need, a necessary evil. I'll spend lots of time in it so need reliability and comfort plus the utility of what my daily requirements are and those are the things that drive the purchase price. I have always had a toy, and that fits a very different bill than the DD. I've been lucky in that the toys have all held their value and shown very little depreciation and in a few cases have sold for more than purchased for.

The price point you're looking in doesn't exactly put you in the same category of most car buyers, so if you can afford $140-180K for transportation I'd assume depreciation isn't something that is at the top of your list for making that decision.

[baege]

Originally Posted by Grumpy Old Man

The price point you're looking in doesn't exactly put you in the same category of most car buyers, so if you can afford $140-180K for transportation I'd assume depreciation isn't something that is at the top of your list for making that decision.

If I do this, I am making cars a real priority in my life, I would travel less and spend less in other areas, I am wondering if it's worth it or whether I should realize once you get to a certain level, it's not worth making a huge jump

kinda like the princeton study on happiness that says once income reaches 75K, increases in income after that don't have a huge impact on happiness.

[Grumpy Old Man]

Originally Posted by baege

If I do this, I am making cars a real priority in my life, I would travel less and spend less in other areas, I am wondering if it's worth it or whether I should realize once you get to a certain level, it's not worth making a huge jump

kinda like the princeton study on happiness that says once income reaches 75K, increases in income after that don't have a huge impact on happiness.

I think you have to decide where you're going to get your happiness bang for the buck....

[ptack]

If you strictly apply economic logic to car decisions you would likely end up with something like a used Corolla. In reality car buying is extremely emotional and car companies do the damndest to influence that process at all points of the income spectrum. In the end you have a compromise between what you emotionally want and what you rationally should get. For most people the equation is heavily tilted to the emotional side. The best advice is probably to rationally determine what the most you can afford is and then to buy whatever you like best within that amount. Just realize that it's almost never going to be a strictly rational decision.

[Grumpy Old Man]

Originally Posted by ptack

If you strictly apply economic logic to car decisions you would likely end up with something like a used Corolla. In reality car buying is extremely emotional and car companies do the damndest to influence that process at all points of the income spectrum. In the end you have a compromise between what you emotionally want and what you rationally should get. For most people the equation is heavily tilted to the emotional side. The best advice is probably to rationally determine what the most you can afford is and then to buy whatever you like best within that amount. Just realize that it's almost never going to be a strictly rational decision.

.....and that your rational reality usually falls short of your emotional wants. Except maybe when you're looking in the $140k+ range. But maybe still what you really want is at the $225K range.

[happyjack]

thankfully, rational reality meets emotional wants in a 2-series!

i'm going to drive the M240 and the M2 when i'm ready to replace my 228...likely in 2021...but i have a suspicion that i'll end up in a 230.

edit: it should be noted that i'm also a boat owner where no rational reality exists.

[Grumpy Old Man]

Originally Posted by happyjack

thankfully, rational reality meets emotional wants in a 2-series!

i'm going to drive the M240 and the M2 when i'm ready to replace my 228...likely in 2021...but i have a suspicion that i'll end up in a 230.

edit: it should be noted that i'm also a boat owner where no rational reality exists.

I have two boats.....what the hell was I thinking.

[baege]

Originally Posted by Grumpy Old Man

.....and that your rational reality usually falls short of your emotional wants. Except maybe when you're looking in the $140k+ range. But maybe still what you really want is at the $225K range.

you nailed it 458 italia is what I really want

[The Wind Breezes]

Diminishing marginal utility applies to pretty much everything, especially expensive cars.

[iminhell1]

Smiles per hour has no financial cap.


What I would add is from a financial standpoint maybe asses what the driving you'd like to do is and if that driving NEEDS a car in that price point. If it's simple a status car, then you're left paying the money. But for a fun car there are MANY out there that won't break the bank and depreciation won't be a killjoy.

[roastbeef]

just about every single car is a depreciating asset and should be treated as such. fantasizing on making a return on a non-exclusive modern car is delusional.

[Humdizzle]

Originally Posted by baege

you nailed it 458 italia is what I really want

I can tell you for sure that my 458 isn't 3x the car my GTR was. But it is better in most ways that matter to me at least. There are alot of little things that make exotics/supercars better than cars like the vette, viper, and gtr. mainly the quality control, paint quality, service you get at a dealer, and also no shared parts. My GTR for instance had the roof liner from the maxima and it was a gross tan color to name one thing.

Alot of the times the cost of the car isn't whats important... its what amount of depreciation you are comfortable with over the period you will own it. The amount of deprecation and service costs on my 458 are about equal to a M3cs lease over the last 3 years. ~25-30k.

[gary_william]

Watches are the same conundrum. What makes a rolex worth more than a timex? Both tell time.

[Grip Addict]

I think I can bring some personal insight.

I daily a E92 M3 (obviously why I am here), last April I began contemplating a stretch to a '10-'12 Nissan GT-R.

The GT-R has more power, would have been faster, got more looks, etc., but the gains from an E92 M3 to a GT-R were not worth the added financial stress to me. I could afford it and stretch to it, but less other extras. Less vacation here or there, things like that.

To tell you the truth, "I could have had a GT-R" feels just as good as "having a GT-R" to me.

Side note - I have driven two on track, a Track Edition and a normal one. So I am not blindly saying I am not missing out on anything for not owing a GT-R. I simply mean the difference between a E92 M3 and a GT-R (or 911, R8, etc.) wasn't worth it to me.

[paliknight]

OP, I thought similarly while deciding to purchase my TTS. Hesitated until I signed the paperwork. But once I saw her and drove her, I knew she was worth it. I agree with others. It is definitely an emotional buy. If it's just for status the. You'll regret it. If for emotion the. You won't. Unless you stretch yourself real then and begin struggling to afford it.

[dgoldenz]

991.1 GT3. Drive one. Fall in love. Realize they have a 10 year 120k mile engine warranty. Marvel at their long term resale value. Buy one. Drive the crap out of it until 2024. Have no regrets.

[Grumpy Old Man]

Originally Posted by gary_william

Watches are the same conundrum. What makes a rolex worth more than a timex? Both tell time.

There's one huge difference. The timex keeps better time and has way more functionality than a rolex.

[Grumpy Old Man]

Originally Posted by baege

you nailed it 458 italia is what I really want

If I won the lottery I'd have to buy a house with a 10 car garage and on the water for my boats....I'd still keep the 993 though. I don't know if any of the toys I bought would be the latest and greatest though.

[roastbeef]

i've always liked dave ramsey's approach to vehicles. one way he put it the other day was if you're buying a car for $50k and your net worth is $200k, and the car is going to depreciate almost 50% in the next few years, thats dumb. that $25k is 1/8th of your net worth and that is a hell of a hit.

[Humdizzle]

Originally Posted by roastbeef

i've always liked dave ramsey's approach to vehicles. one way he put it the other day was if you're buying a car for $50k and your net worth is $200k, and the car is going to depreciate almost 50% in the next few years, thats dumb. that $25k is 1/8th of your net worth and that is a hell of a hit.

Gotta spend money somewhere. People just have to decide what percent of their networth/income is worth it for their hobby. I'd rather spend my money on fast cars and fun and an average house... than a large house with an average car. although the latter is the better financial option since houses usually appreciate.

[eluded]

Bigger house always wins. Cars are a money out unless u have air cooled porches or mkiv Supra's.