How to not lose a pile of money on cars

[Felonious Crud]

In another thread Matt suggested that the trick of not losing a ton of money on cars is to not keep them too long. This disconcerted me a little because I worked on the basis that the three-year old GTS I bought in May would have taken the worst of its depreciation and my loss would have dropped to a less cliff-like descent. So, as this forum is blessed not only with good opinions but also with some solid, grounded people I'm interested to know what strategies work to reduce loss.

Perhaps we will conclude that the approach of "bvgger the loss, it's my CAR and I love it!" (my usual view!) is the only sensible approach and the only way to stay sane. Buy it, enjoy it. Or perhaps there are some other ideas. The obvious ones are:

1. Don't buy new
2. Keep the mileage low
3. Err...

Regardless, I love my car and I'm bl00dy well keeping it. Until next spring, at the very least.

/Adam

 

[bigbob]

Depends on so many variables.

I ran the numbers in spring 11 and compared buying a new 4.7 for four years with buying a three year old 4.2 that MM were selling and keeping that for the same time. The cost difference was less than 20% PA so I bought new. I still feel that the combination of strong residuals, high main dealer used car margins and discounts available of new cars makes this stack up today as long as you buy a light spec new car.

 

[Parisien]

See the other thread Adam..............options very limited....................plus if no one buys the high end cars new...I wouldn't be driving a 2nd hand one now!

Cheers guys!


P

 

[stradaman]

Colour plays a big card. Until recently, and to an extent, still does, white on a prestege car, would knock loads off the value. Same with washed-up colours, and garish ones. Dark metallic blue, always sells. Black, and certain reds, sell. The trade, hates doom blue, as its called, certain greens, and yellow, can put people well off.
So a good colour, right interior combination, right spec, will command more money, always! I have always said, buying new, is a fools game. Soon as you drive off, its lost ££££. Good buys, are demonstrators. Depreciation lost, still less then 12 months old, and no doubt a 12 month warranty thrown in!

Andy.

 

[mjheathcote]

Certainly buying after the initial 50% drop in value, which is usually after around 3 years.
I was very lucky with my Lotus Elise I bought less than 4 years old, for £14k with at the time, quite high mileage of 35k. New was £30k.
8 years later sold her for £13k with 45k miles! Only lost a grand, plus routine maintenance of course.
Was in the right colour, condition, history, plus the demand from Europe was high with one euro to one pound. Sold within 30 minutes to France, with plenty after her for weeks later, also from France.
With the current exchange rate I don't think it would be the same one year on.
Crazy that when I bought the Elise, my Maser with the first owner was nearly new costing well over £60k, then when I sold the Elise only needed to find a couple of k to then buy the Maser, that had less than 12k on the clock and 2 owners from new!

 

[lozcb]

In another thread Matt suggested that the trick of not losing a ton of money on cars is to not keep them too long. This disconcerted me a little because I worked on the basis that the three-year old GTS I bought in May would have taken the worst of its depreciation and my loss would have dropped to a less cliff-like descent. So, as this forum is blessed not only with good opinions but also with some solid, grounded people I'm interested to know what strategies work to reduce loss.

Perhaps we will conclude that the approach of "bvgger the loss, it's my CAR and I love it!" (my usual view!) is the only sensible approach and the only way to stay sane. Buy it, enjoy it. Or perhaps there are some other ideas. The obvious ones are:

1. Don't buy new
2. Keep the mileage low
3. Err...

Regardless, I love my car and I'm bl00dy well keeping it. Until next spring, at the very least.

/Adam

Gut feelings come into it alot Adam , and my sentiments are with you , if your in the earnings bracket where the depreciateion hit can be carried or lost then your (I love my car and I'm bl00dy well keeping it. Until next spring, at the very least) statedgy is the right one , its all a personal thing in my view personally im a tight wad and hate losing serious money on cars


regards loz

 

[hodroyd]

You could always buy such as a 458 Italia for around £170K, then they seem to sell for up to £200K second hand, good deal???

 

[allandwf]

"Toys" and niche type cars , as opposed to daily drivers, seem to be best bets. My previous experience TVR Tuscan, ran 2 years nothing more than servicing, sold profit. TVR Cerbera ran 2 years again just servicing which I carried out, sold profit. Fiat 500D 1963 had for 3 years , sold profit. Espada, never ran, bought as project. Pushed into garage, kept three years, sold profit. The ones that cost money in depreciation, and or ,major repairs were all daily drivers and reasonably new.

 

[Andyk]

In another thread Matt suggested that the trick of not losing a ton of money on cars is to not keep them too long. This disconcerted me a little because I worked on the basis that the three-year old GTS I bought in May would have taken the worst of its depreciation and my loss would have dropped to a less cliff-like descent. So, as this forum is blessed not only with good opinions but also with some solid, grounded people I'm interested to know what strategies work to reduce loss.

Perhaps we will conclude that the approach of "bvgger the loss, it's my CAR and I love it!" (my usual view!) is the only sensible approach and the only way to stay sane. Buy it, enjoy it. Or perhaps there are some other ideas. The obvious ones are:

1. Don't buy new
2. Keep the mileage low
3. Err...

Regardless, I love my car and I'm bl00dy well keeping it. Until next spring, at the very least.

/Adam

You can buy new as long as you buy a desirable or fashion tye car...Wife bought a new Minin when they came out and ran it for a new and sold it for more than she paid....Everyone wanted on back then.................I bough a Z4 and sold it for more than I aid for it. Mind you I never took delivery and just sold my lace on the waiting list...

 

[Emtee]

How not to lose a pile of money on cars? - Don't buy cars.

A glib answer, but without a time machine and the benefit of hindsight, this is very generally true.

Yes there are some exceptions, but putting those few aside, the best you can hope for is to reduce the rate of decline with shrewd, well timed purchases and sales.

Doesn't stop us buying Maserati's though does it, so financial losses are obviously more than matched by the joys of ownership. Long may it last.

 

[GhostyDog]

Doesn't stop us buying Maserati's though does it, so financial losses are obviously more than matched by the joys of ownership. Long may it last.

Its stopped me, I find it a serious challenge reconciling losses. I will challenge myself and buy one though

 

[ENZ525]

Here are my stats:

Bought and owned more than 35 cars (real figure closer to 40),
At least 25 of those bought new,
Lost money on every single one, except for 2...
...a '66 e-type jag, and a '65 alfa romeo giulia spider,

Would i do it again....yes, yes, yes, as long as you love it, doesn't matter what the marque is, enjoy it for as long as possible and move on to the next

Owning cars as an investment IMO is a different kettle of fish.

 

[Parisien]

Yeah...we all love that new smell , your name on the log book...those first miles...the love affair.........................but then reality sets in when you go to change........................


HOW MUCH??????!!!!!!!!!




Only bought a new car a few times in the last 15 yrs......


P

 

[Emtee]

Its stopped me, I find it a serious challenge reconciling losses. I will challenge myself and buy one though

Depends how you define loss Ghosty, but I accept that before you take the plunge, it's a tester. Financially I'm loosing money on my cars - my 4200 and (hopefully) to a lesser extent on my GS, but they've repaid me with my most enjoyable motor car ownership since I began driving.

Ying and Yang.

 

[Parisien]

True Miles.....pound for pound an awesome experience......still turns heads...still shocks people on over taking and the aural wash which hits them when I pass.................at 7.5K revs....


P

 

[Felonious Crud]

For me the love affair of a new car ends with the first scraped wheel, ding, dent and stone chip. That's when the emotional glee of a brand new car becomes the reality of just another car. Until the Maser. The joy of this car is relentless. Even just sitting in it is a delight. Personally, I'm glad I bought second hand (new prices weren't an option!) and I don't think a new one would have made me smile any more. My last few cars have all been new or ex-demo and I'm not only converted to Italians but also to letting someone else take the first hit.

So clearly it will lose me money but I think all of us here are willing to take the hit: it's a fair price for joy.

 

[GhostyDog]

Depends how you define loss Ghosty, but I accept that before you take the plunge, it's a tester. Financially I'm loosing money on my cars - my 4200 and (hopefully) to a lesser extent on my GS, but they've repaid me with my most enjoyable motor car ownership since I began driving.

Ying and Yang.

I know and ill probably lose a considerable amount on the Brera when I trade up, just need to get used to it I suppose

 

[Andyk]

Here are my stats:

Bought and owned more than 35 cars (real figure closer to 40),
At least 25 of those bought new,
Lost money on every single one, except for 2...
...a '66 e-type jag, and a '65 alfa romeo giulia spider,
ey
Would i do it again....yes, yes, yes, as long as you love it, doesn't matter what the marque is, enjoy it for as long as possible and move on to the next

Owning cars as an investment IMO is a different kettle of fish.

Would have to agree Enzo....In all the cars I've owned I have bought them because I love the car and marque..Never once tought about what I would loose money wise....and I've enjoyed everyone of them and as with you wouldn't change a thing.............

 

[melox2]

Depreciation ! I have always been a petrol head and have spent god knows how much on cars in the last 20 years. BUT, does it really matter? If you have had the enjoyment of owing the car and had the buzz driving it (or in some cases, just looking at it through a glass screen partitioning your house from your gararge - then loss of money does not even come into it

 

[hodroyd]

Whatever you buy to have fun with usually depreciates. So fun costs money for some of us, but it's worth a few bob to really enjoy yourself!!!