A&Q about Lotus
Q:
I see so many threads speculating about the "insert adjective here" (plummeting, dropping, tanking, collapsing, etc.) price and/or value of the Elise/Exige cars.
What's up with that?
I don't view my purchase of the Elise as a "Pork Belly Futures Contract" or any other speculative investment. Nor do I expect any type of return or profit from it. The return comes in driving it.
I could give a S*&% about the value of the car after I bought it. I got it for me and what I want, not because it represents some sort of investment instrument that needs to hold value over time.
As long as I enjoy the car and it performs to my expectations, I don't really care how the market perceives or values it. When it comes to appreciating Lotus cars for their driving prowess and what it is (or more importantly, what it isn't!!), most people don't "get it", so if they are stressing over its relative value and price, I don't think they "get it" either.
If I wanted to protect the value of my "investment", I would have bought Savings Bonds. Definitely less fun than a long drive in the Elise...
Wayne
A:
A lot of people here (myself included) are car enthusiasts who are always craving their next cool car fix. A lot of people here go through many more cars than they really can justify. They keep one for a year or two (sometimes even less) and then move on to the latest and greatest. It's part of being a car nut with limited $ or limited space. You can't own every cool car at the same time, but you might be able to own many one at a time.
I suspect that some of the angst is related to losing too much $ on the cars. If you take a $20k beating after owning the car for 2 years, it can really mess you up when you're looking at the next car.
Buy a car for $50k, sell it for $43k, then buy another car for $55k. Most people can handle that kind of hit when it means you move on to your next automotive "true love". But buy for $50k, sell for $30k, then you might find yourself unable to afford anything interesting for a little while.
If you know you want to keep your Lotus forever -- you've got no worries. But if you're thinking "maybe I should just get a Cayman S or the upcoming E90 M3", you may have a hard time affording those if you take a bath on your Lotus.
No matter how rich, nobody likes to lose money. People realize that cars will depreciate, but Lotus has a history of poor resale values & for many people here (myself included) this is their 1st Lotus.
We don't know what the car will be worth or what to really expect. It's not a 3 series BMW with a known depreciation curve.
A:
Originally Posted by Exigent
If you take a $20k beating after owning the car for 2 years, it can really mess you up when you're looking at the next car.
Buy a car for $50k, sell it for $43k, then buy another car for $55k. Most people can handle that kind of hit when it means you move on to your next automotive "true love". But buy for $50k, sell for $30k, then you might find yourself unable to afford anything interesting for a little while.
I guess I don't get this whole "flipping" concept of car ownership. I buy a car because it's what I want and it has to impress me enough to justify the expense. I'm not scanning new car ads the morning after I bought it to find the next best thing.
Originally Posted by Exigent
It's not a 3 series BMW with a known depreciation curve.
That's the whole point, it's NOT a 3 series BMW, it's a Lotus that drives better, I don't care about the depreciation curve. If I did, I'd buy the Bimmer.
Wayne
A:
Lotus will lose a bigger percentage of original price but you will probably lose less money than if you bought a more expensive sports car. Keep any car forever and you do not get any of your monetary investment back.
A:
Originally Posted by Buz
Lotus will lose a bigger percentage of original price but you will probably lose less money than if you bought a more expensive sports car. Keep any car forever and you do not get any of your monetary investment back.
Have you checked out Mercedes? There softer than butter. I've seen countless people lose $20K in 1.5 years so this does not apply to Lotus only.
A:
Originally Posted by Buz
Lotus will lose a bigger percentage of original price but you will probably lose less money than if you bought a more expensive sports car. Keep any car forever and you do not get any of your monetary investment back.
oh yeah, that's true, but obviously, if you keep buying cars you'll lose even more on depreciation!!!
A:
I trade cars every 6 months. The list of cars I have owned in the past 10 years probably averages about 3-4 a year. I get bored easily (woops are we talkin cars or boyfriends.. haha). Somehow the elise is still around. I've put a lot into it in upgrades and when it comes time for my exige S to get to my driveway, someone will be getting a boatload in aftermarket parts for free just to free up the parking spot. The only thing I can see myself keeping is the CF diffuser, CF seats and that's probably it.
Then again, I really don't care about depreciation, I care about how quickly it's not my problem anymore and when I can have the new hotness.
A:
so far this year i have traded a car in every 4 month. I love all the car i've owned but get bored of them and/or want something new/different. Although I would like the car to depreciate as little as possible, it's just part of the "game". It's easy to expect a loss of $10K in the first month on any new car within this price range, but ppl like to whine just to whine. Espeically when they are upsidedownw/ the loan vs the current car value.
A:
Not possessing a restless spirit, I like keeping my cars as long as possible. It is a pleasure to keep 'em running and looking good. Then initial price is important only once. The continued spending on mods ...
A:
Posts #1 & #2 here sum it best for me
I'm one of the keep 'em type of guys and add to the collection (when possible)
A:
This sums it up for me..in fact those may be my next cars...include a 997 911 too..
Originally Posted by Exigent
A lot of people here (myself included) are car enthusiasts who are always craving their next cool car fix. A lot of people here go through many more cars than they really can justify. They keep one for a year or two (sometimes even less) and then move on to the latest and greatest. It's part of being a car nut with limited $ or limited space. You can't own every cool car at the same time, but you might be able to own many one at a time.
I suspect that some of the angst is related to losing too much $ on the cars. If you take a $20k beating after owning the car for 2 years, it can really mess you up when you're looking at the next car.
Buy a car for $50k, sell it for $43k, then buy another car for $55k. Most people can handle that kind of hit when it means you move on to your next automotive "true love". But buy for $50k, sell for $30k, then you might find yourself unable to afford anything interesting for a little while.
If you know you want to keep your Lotus forever -- you've got no worries. But if you're thinking "maybe I should just get a Cayman S or the upcoming E90 M3", you may have a hard time affording those if you take a bath on your Lotus.
No matter how rich, nobody likes to lose money. People realize that cars will depreciate, but Lotus has a history of poor resale values & for many people here (myself included) this is their 1st Lotus.
We don't know what the car will be worth or what to really expect. It's not a 3 series BMW with a known depreciation curve.
A:
Originally Posted by Rachel
I trade cars every 6 months. The list of cars I have owned in the past 10 years probably averages about 3-4 a year. I get bored easily (woops are we talkin cars or boyfriends.. haha). Somehow the elise is still around. I've put a lot into it in upgrades and when it comes time for my exige S to get to my driveway, someone will be getting a boatload in aftermarket parts for free just to free up the parking spot. The only thing I can see myself keeping is the CF diffuser, CF seats and that's probably it.
Then again, I really don't care about depreciation, I care about how quickly it's not my problem anymore and when I can have the new hotness.
First...I'm in love with this girl (Rachel)
Second...If you're looking for a car as an investment you're an idiot. You can only pray that you don't completely lose your a$$ when you want to ditch it. I don't understand why (unless you can't afford it) anyone would want to dump an Elise/Exige. With packages like the FF 380 making the car sub 3seconds 0-60 the possibilities are endless
A:
Originally Posted by waydui
I see so many threads speculating about the "insert adjective here" (plummeting, dropping, tanking, collapsing, etc.) price and/or value of the Elise/Exige cars.
What's up with that?
I don't view my purchase of the Elise as a "Pork Belly Futures Contract" or any other speculative investment. Nor do I expect any type of return or profit from it. The return comes in driving it.
I could give a S*&% about the value of the car after I bought it. I got it for me and what I want, not because it represents some sort of investment instrument that needs to hold value over time.
As long as I enjoy the car and it performs to my expectations, I don't really care how the market perceives or values it. When it comes to appreciating Lotus cars for their driving prowess and what it is (or more importantly, what it isn't!!), most people don't "get it", so if they are stressing over its relative value and price, I don't think they "get it" either.
If I wanted to protect the value of my "investment", I would have bought Savings Bonds. Definitely less fun than a long drive in the Elise...
Wayne
I agree. Fantastic.
A:
I lose money on every car I own, but thats Ok I'll make it up in volume.
A:
I think people who buy a car and keep it forever are rare these days. I don't think anybody is considering their car "an investment". But if you plan to sell your car at some point (like most people do), then you should care how much it is going to cost you in depreciation. It's that simple.
It seems to me that depreciation of the Elise/Exige as a percentage is going to be on the high side. Perhaps 25% in 1 year, because the Lotus has a limited market size, and a lot of the sales were due to trendiness. Boosting the power on the 2007 Exige is also bad for resale.
A:
Being overly concerned with whether or not buying such and such a car is a good "investment" or not is like deciding whether to eat out tonight, or go see a movie.. versus cooking or renting a DVD, is a proper "investment" strategy. If you even have to consider that, maybe your financial situation is much too tenuous to even "consider" a purchase.
I work and invest for my future, period. Whatever's left over is for me to enjoy, period. For some, they LIVE for working/investing, and that is fine. For others, they work/invest to live. I am of the latter.
Personally, I would rather enjoy my life NOW, rather than get ulcers worrying about how every penny is working for me.
Bottom line, if you are SO concerned that purchasing a TOY is not a wise "investment", then maybe you shouldn't. If you are a responsible adult, and you are secure, go for it, and don't worry what anyone else thinks.. you only live once!
A:
Originally Posted by raygr
I think people who buy a car and keep it forever are rare these days. I don't think anybody is considering their car "an investment". But if you plan to sell your car at some point (like most people do), then you should care how much it is going to cost you in depreciation. It's that simple.
I DO plan to keep the Elise for ever (need wifes agreement on new house with more garage space when I want additional cars!).
But on value for money if you are that worried about depreciation buy a 1 yr old car (seem to be a few around that are just run in!) and keep it for a few years - the original owner takes the biggest depreciation hit.
A:
Originally Posted by waydui
I don't view my purchase of the Elise as a "Pork Belly Futures Contract" or any other speculative investment. Nor do I expect any type of return or profit from it. The return comes in driving it.
Wayne
When I read this line I started nodding my head in total agreement. Especially the last sentence.
A:
I did not buy my Exige for investment purposes. But that doesn't mean I don't care about it's value when I get rid of it some day.
Most everything has a cost of ownership. We make purchase decisions based on how much fun/cost, or love/cost, or practical value/cost, or whatever. In the case of my Lotus, it's fun/cost is lower if the cost of ownership is higher. I intend to keep mine for a long time, but realistically it won't be forever. Just because the numerator (fun) in the equation is very high doesn't mean I'm willing to throw the demoninator (cost) out of the window.
xtn
My home has another purpose besides "investment value" also. I live in it. I get pleasure out of it.
A:
Here's my way of looking at it.
15,000 miles
Average Speed 30mph (traffic, idling, etc.)
500 hours
My Current Depreciation Est.
$10,000
$10,000/500 = $20
So I'm roughly pay $20 bucks an hour in depreciation.
Not many other hobbies around with the kind of enjoyment I get out of driving for $20 bucks an hour.
In the long run I don't even worry about it. My baby's got a lifetime membership in my garage.