Jump to content
TEAM SHELBY FORUM

GT500 Pricing and supply....


badlx

Recommended Posts

Guest evilchris

This is for those who think people shouldn't pay ADM's.

 

If you were selling your house and someone looked at it and wanted to give you $10k over the asking price, would you accept the offer?

 

Bada Bing. :bandance:

 

 

Home's don't depreciate 50% in 6 months like GT500's bought with ADM's will.

Link to comment
Share on other sites

Home's don't depreciate 50% in 6 months like GT500's bought with ADM's will.

 

 

 

Why you distinguish between appreciating and depreciating assets beats me. You words indicate you think the markets for appreciating and depreciating assets should operate differently. They don't and they won't.

 

And to your point, homes can depreciate. If you owned property in LA in the early 90s, you took a 30-35% hit. In San Diego, a 20-25% hit. The Bay Area, bastion of strong property values, a 15-20% hit. And if you think that is unusual, you might want to look around right now. In my area, if you purchased a home last summer, you are probably under water by 10%. And I live in a hot market (as do you).

 

You might switch to, "well, in the long run property always appreciates." Again, this is demonstrably false. Property usually appreciates. Sometimes it depreciates over long periods of time. Then you might focus on the rate or depreciation or total amount of depreciation. If so, how do you calculate the point at which depreciation becomes relevant?

 

Bottom line: appreciate, depreciate...it doesn't matter and its irrelevant to ADM and whether one should or should not pay it. Those that pay ADM are getting something for their money (...at the very least, they are trying to get something for their money...if they pay the money and don't get what they want because they didn't clarify what they thought they were buying...well, then they've learned something. Everyone makes those kind of mistakes. I know I have had much more expensive lessons than a $20k mistake on ADM).

 

In any event, I can think of a number of good reasons to pay ADM.

 

Not to harp on that too much.

 

Here's another thing I was thinking about. Let's say Joe A buys a 911 turbo...around $150,000. In 5 years, it might be worth $70,000 (...don't bag on me, I don't know how well they hold their value...). So, that's an $80,000 hit over 5 years, not to mention to cost of capital. Let's say Joe B pays $65k for a GT500. In 5 years, it's worth $20k. That's a $45k hit...plus cost of capital (much less than on a 911). Let's assume the two received equal pleasure from owning the cars. So, who's smarter...the guy driving the 911 or the guy paying ADM on a GT500? You might say Joe B is dumber because he could have waited around a bit and bought the car for less. But, big deal...maybe the pain of paying ADM was outweighed by other factors (...get the car early, no hassles at the dealership, immediate gratification, reduce stress, etc.) He wanted the car and he bought it. It cost him less over 5 years than his buddy driving the 911. Same pleasure. The calculus is looking pretty easy.

 

And mcduck, you just hit the nail on the head. I'm killing time here rambling about ADM and market forces just to relieve PSDS. I can't have the car right now, so I might as well do this! I was thinking of creating a "loser index" and measuring the time I waste with posts like this one. I could give myself some negative reinforcement...like every time the index gets to a certain point, my wife gets to spend $200 at Nordstrom. I'm a cheap ass, so that'd probably cut out a lot of my dumb posts...and I'd then be free to spend more time making money...or playing with my kids...it's a win-win!

Link to comment
Share on other sites

Thanks for the disrespect.

 

 

I'm sorry you took my post that way. That's not how it was intended. If you think my comments about me wasting my time, my dumb posts, and "loser index" were directed at you...they weren't. I was goofing on myself for spending so much time on long posts.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...
...