Exotic cars

My friend had purchased a new car for $50,000 in 2001.  Last week he sold it and got $11,000 for it.  In the 7 years he’s had the car it depreciated $39,000.  We were talking about expensive and exotic cars and I was saying that you don’t really spend $100,000 on that type of car.  While it’s true that you have spent $100,000 out of pocket, its unreasonable to believe that that car will be worth anywhere close to $11,000 in 7 years.  I purchased my 1993 Acura NSX for about $39,000 in 1998.  If I still had it today, I believe that it could be sold for $28,000.  In 10 years, this vehicle depreciated $11,000.

I just have a different view when it comes to high end cars vs. exotic cars.  I really feel that purchasing a used exotic is a much better value than purchasing a brand new sedan.

Just a quick example, a 2001 Aston Martin DB7 is about $55,000 and a 2008 BMW 335 is about $50,000.  In 2013, I wonder which car would be worth more.

About Kenric

My blog about living life to the fullest by generating passive income through real estate, business and online investments.
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