That's if they make it to 100K without major expense.

 

I have noticed this depreciation, which is why I am shopping for a Range Rover as we speak.

I understand that these cars are bad on the wallets when it comes to fixing them, however, the point of the article is how they have been halved in just over a year. Most of which, if not all would still be under factory warranties.

Just goes to show that the Rich are not immune.

 

Add this: 2006 Mercedes Benz CLS55 AMGs with under 20K miles going for $55K... it's a $105K+ car!!!!!

Confirmed two deals over on MBWorld...

 

You guys have not mentioned Maserarti, the coupe and spyder, that orginaly had prices of $90k, can now be bought, for around 35K. Great looks for the buck, just remember they are italian cars!

 

You would be surprised how many "normal income"(under 80k) people drive 70k-120k+ cars here in California; maybe my definition of rich (450k+ a year for a couple) isn't the same. I think there was an article about how a large number of O.C. residents fiance/lease expensive cars, while renting an apartment and how the monthly bill on the car is higher than the rent on the apartment.

100k+ mercedes (with the exception of the SLR) have always depreciated huge amounts within very short time periods.

 

Expensive cars have always been a waste of money, just lately it has become even more obvious (with incredible depreciation, not unlike crappy GM/Ford/Chrysler cars). But if you have money to burn and can truly appreciate high end machinery, it's good expensive fun.

 

That's a bit less common in Silicon Valley, people still drive expensive cars here but generally income ranges are in the $100-400K range for those people.

 

The only car I can think of is a Protegé. Their resale value is ridiculously low and yet they're fairly reliable and not too expensive to maintain. Guess we can thank all the Civics and Corollas out there. A used Corolla is ridiculously expensive.

 

Or better to buy used. I bought my A8L, which had a sticker of $81K new, for $32K with only 39K miles and a 3 year audi dealer warranty. Why buy new?

 

A good point. I agree. With economic conditions like they are today, it is even more important to hold costs down when buying a car and putting the money saved (or the "money to burn", as you describe it) instead, into one's retirement, IRA, or 401K. The more you have saved up for the future, the better off you will be.

 

ive seen some of those coups for 26 before

 

I agree that cars are HORRBIBLE investments. They don't hold value and they certainly dont' do anything for you in the future. Which is why, unless I plan on keeping the cars for 5+ years, I would not buy new. For myself, I like to switch cars too often and it is much better to let someone else take the hit, while enjoying all the benefits. Style, performance, and compliments.

I do think it is a problem that people spend more on their cars than on their future, like stocks, and retirement plans. Especially not owning a home or at least saving to do something. The OC is not the only place where money is blown on expensive vehicles.

 

Well cars are not an investments; they are simply assets. And some people will not buy used anything.

 

True. And some people will not buy used for a reason.....I happen to be one of them. IMO, even with the Certified Used Car programs and warranties, there is simply too much risk involved to justify the lower price. And, to top it off, I have not been impressed with the condition of many "Certified" used cars I've seen (I've examined them closely). It seems to be a PR campaign more than anything else....a way to justify higher prices for Certified cars than for non-Certified ones.

 

Correct, rapidly depreciating assets, some of poorest asset purchases available from a classic investment standpoint.