Cost of ownership for an exotic car. **super low miles on exotic cars**
05-31-2004, 06:23 AM
#1
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Cost of ownership for an exotic car. **super low miles on exotic cars**
My friend has a neighbor who just got a F40. My favorite car back in the day.
Anyway, the car only has 5000 miles. I don't know the year, but they were built from 87-92.
So the car can be 12-17 years old. I'll call it 15 years just for discussion.
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Let's say the MSRP was $400K the price has gone up and down, I believe at one time I've seen them going for $800K. Now probably $300-400K. So let's say for argument you didn't buy high and sell low or vise versa. Let's say you buy and sell at the same price, But because you are afraid of taking a hit in depreciation you want to keep the miles down.
This brings us to this 15 year old car with 5000 miles. That's 750 weeks old, so we get 6-7 miles a week, or a mile a day. (actually less).
So if you buy and sell for the same price that seems like a good deal. No money lost. Well let me get to the cost. let's say the cost averages out, so that if you own it 5 years or 15 years the cost and the mileage is spread out equal.
Let's look at 5 years so we can figure in sales tax etc..
-$400K + tax (5%) = $20K
-Insurance. Low miles, but I'd still think they want $2K/year. So figure 5 years = $10K
-Maintance (?) let's figure $2k/year 5 years = $10K
-Loss on your cash. Let's say you don't need a loan, but because you are only driving 1 mile a day this car is obviously not used for transportation, it's a luxury item. So if you didn't buy it, you could invest the money. If you invest $400K at 4% that's $12K a year for 5 years = $60K
So there you have it, no depreciation, but in 5 years it costs you $100K.
And you have put just over 1,500 miles on it.
So you have $66/mile. Or $2K/month for a car you drive just 27 miles a month.
If it were me, I'd rather drive it instead of 333 miles/year. I'd rather drive it 3,000+ miles a year. Sure you will take a bigger hit in depreciation, but your cost per mile goes down to $12/mile.
Anyway, the car only has 5000 miles. I don't know the year, but they were built from 87-92.
So the car can be 12-17 years old. I'll call it 15 years just for discussion.
CLICK
Let's say the MSRP was $400K the price has gone up and down, I believe at one time I've seen them going for $800K. Now probably $300-400K. So let's say for argument you didn't buy high and sell low or vise versa. Let's say you buy and sell at the same price, But because you are afraid of taking a hit in depreciation you want to keep the miles down.
This brings us to this 15 year old car with 5000 miles. That's 750 weeks old, so we get 6-7 miles a week, or a mile a day. (actually less).
So if you buy and sell for the same price that seems like a good deal. No money lost. Well let me get to the cost. let's say the cost averages out, so that if you own it 5 years or 15 years the cost and the mileage is spread out equal.
Let's look at 5 years so we can figure in sales tax etc..
-$400K + tax (5%) = $20K
-Insurance. Low miles, but I'd still think they want $2K/year. So figure 5 years = $10K
-Maintance (?) let's figure $2k/year 5 years = $10K
-Loss on your cash. Let's say you don't need a loan, but because you are only driving 1 mile a day this car is obviously not used for transportation, it's a luxury item. So if you didn't buy it, you could invest the money. If you invest $400K at 4% that's $12K a year for 5 years = $60K
So there you have it, no depreciation, but in 5 years it costs you $100K.
And you have put just over 1,500 miles on it.
So you have $66/mile. Or $2K/month for a car you drive just 27 miles a month.
If it were me, I'd rather drive it instead of 333 miles/year. I'd rather drive it 3,000+ miles a year. Sure you will take a bigger hit in depreciation, but your cost per mile goes down to $12/mile.
05-31-2004, 07:13 AM
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IMO many of these people don't consciously try to keep the milage down. The fact is that these cars are just not practical to drive on the street and anyone who can afford a 400k toy obviously has some other nice stuff to get around in. Also, remember that in general, the people who own these cars are semi (if not fully) retired so they probably don't put many miles on ANY of their cars, let alone the F40.
-Steve
-Steve
05-31-2004, 07:23 AM
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That's true, anyone that can afford $400K car could care less about $2000/month no matter if he drives it at all.
Just funny to think. Say I'm going out to get a loaf of bread. Take the F40 out 5 miles, that's one expensive loaf of bread.
Just funny to think. Say I'm going out to get a loaf of bread. Take the F40 out 5 miles, that's one expensive loaf of bread.
05-31-2004, 09:17 AM
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That's an interesting cost breakdown. Like you, I always try to explain to others how much their luxury items are really costing them by using the what-if-you-had-invested-that-money-instead scenario but 90% them do not seem to get it (or care).
By the way, I remember reading in a major car magazine (R&T or Motor Trend) back when the F40 was new (which, by the way, was selling for more that one million!) that to fully insure a street registered and driven F40 was around $13,000 a month!!
By the way, I remember reading in a major car magazine (R&T or Motor Trend) back when the F40 was new (which, by the way, was selling for more that one million!) that to fully insure a street registered and driven F40 was around $13,000 a month!!
05-31-2004, 09:27 AM
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Originally posted by X4DLuvOfSpeedX
By the way, I remember reading in a major car magazine (R&T or Motor Trend) back when the F40 was new (which, by the way, was selling for more that one million!) that to fully insure a street registered and driven F40 was around $13,000 a month!!
By the way, I remember reading in a major car magazine (R&T or Motor Trend) back when the F40 was new (which, by the way, was selling for more that one million!) that to fully insure a street registered and driven F40 was around $13,000 a month!!
I was thinking about this when I was going to trade my S2000 with 10K miles, after all was said and done, it would have cost me more than $10K or $1/mile. Well I thought I could drive a TR-512 for $1/mile. But not really because there are other things that make an expensive car cost money to own even if it is fully depreciated. Such as loss on cash (not invested).
05-31-2004, 09:45 AM
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Originally posted by 1a-race
I don't think people who own $400k cars finance them or count their pennies to see if they can afford one for that matter.
I don't think people who own $400k cars finance them or count their pennies to see if they can afford one for that matter.
People who worry about the money don't buy $400K cars.
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05-31-2004, 02:37 PM
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I read on a Ferrari forum, this guy bought a Daytona and had to catch-up on the maintance and it was like $24K
My friend had an old Aston Martin, it's engine over heated and it's costing him $20K and the car is only worth $30-40K.
My friend had an old Aston Martin, it's engine over heated and it's costing him $20K and the car is only worth $30-40K.
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