As one of the guys who made off with a steal of an NSX deal a while ago. $1,365 a month - 0 down, I’ve realized while I LOVE the car… I’m looking into a more exotic (1st world problems I know) kind of car.
I do not have sales tax here on cars, so I am not worried about that! Thanks to Jon for having me point it out!
I realized I got lucky and shouldn’t expect a $1,300 lease payment on a 180k car anytime soon.
But let me get straight to the point - Can I finance a '12-'14 458 Italia, '16+ Huracan or '16 GT3 RS and come out ahead in a years time relatively compared to my NSX lease? Which one would you say would be the safest bet from a resale point of view?
I’ve heard it’s relatively easy to buy an slightly used exotic, get a good amount from asking price, put 4-5k miles on it in 5-6 months. And sell it for basically what you paid for it (minus interest/gas/other various costs) essentially being even cheaper than the NSX lease. I know the payments will hover around the $2,500-$3,000 mark but it’s worth it if I sell it and get a majority of it back minus interest.
Let me see if I can explain this correctly and someone tell me if this is right (shout out to the dealers/brokers)?
Let’s just say I buy a GT3 RS with 4k miles and desirable options for 190-195k (got a good deal and bought 10-15k under market while everyone else is asking 205k). I drive it for say 4k miles. Can I expect 190k out of it in 5-6 months time for a quick sale?
My NSX went from “180k” and is now selling for around the 135-145k range and it’s been less than a year. As I pay the 1300 monthlies, I’m going to keep paying off the depreciation leaving me with no positive equity. I do have the priviledge of “walking away” after 30k miles and 36 months but only after spending $49,000 + gas/insurance/maintenance the next 3 years.
I’m very confused by that thinking. Why/how would you be able to get it for $10-$15k under market value, yet everyone else pays $205k? That’s very unlikely, but let’s just assume you are able to. If you buy at $190k and sell at $190k in 5 months, you would still be responsible for the tax. Not sure of your location, but let’s just say it’s 7.75%, so that equals $14725. That means it would’ve cost you $2945/month, which seems very expensive to drive an exotic for just 5 months.
No sales tax here luckily! That’s why I mention it! And you’d be surprised how many people want to suddenly get rid of a 200k car quickly. Typically also have money to burn and want to move the car. I am in talks with 2 people at the moment who’d unload their cars just to move them at this point since they have “new additions” joining their garage soon and want the process done and over with quickly.
So when the time comes for you to resale, you’ll be up against people that want to get out quickly too. Wouldn’t buyers buy from the desperate sellers for less instead of you?
I understand what you’re getting at. I think you’d have better luck talking with specialty collector brokers, appraisers, and even an auction house or two to get a sense for things.
I’d be worried about: taxes, insurance, impact of multiple owners on value, must have options to aid resale, etc.
There is a lot of excellent knowledge here, but on this we may not be the best place to get an answer.
The question at hand here is patience, not necessarily value. These people I talk about, want a QUICK sale.
The person I will be is the one who can sit on it for a month or two waiting for the right buyer. As long as I price competitively, someone WILL buy it. I’ve bought and spent an absurd amount of money on cars the last 2 years (and realized that not once did I have some form of equity in it because I chase leases).
I understand leasing a S90/Chevy Trax/Hellcat for hundreds cheaper than financing it, that makes sense since you’re getting a lot of car for LITTLE money and walking away. But buying new exotics… nope. Not for me anymore. The resale value drop alone can buy you a new Hellcat cash.
I appreciate the answer, I get what you’re getting at. I just found a few brokers/dealers on here and was hoping to spark some debate. I mean shoot, even if I lose let’s say 10k in a year buying and selling a 458/Huracan. That’s still less than the NSX (which would be 16k) while getting MORE car.
I think this is easier said than done. The risk is high that these high-end cars can drop in value fast. If you are willing to take that risk, go for it. No one can tell the future value. If someone did, they’d be doing it themselves and scooping them all up to make a killing.
You are not going to be able to drive a high end vehicle and sell it for the same price you bought it for. Even in the impossible case that you do, you will be at a significant loss in terms of insurance and especially maintenance. Have you ever had a high end sports car? Taking care of it is very expensive and annoying, and a massive waste of money. I would only consider buying one If I was making at least 5 million a year, otherwise, you are being dumb with your money.
All of these models have been out long enough that can get a good idea by looking at ebay sold listings and various car sale sites. Just pay attention to mileage and model years to get an idea of what you could potentially “lose”
The point of this thread is not about how I spend my money, it’s about how I can save some money while getting a bunch out of it aka basically lease hacking except I’m doing it with finance. I lose probably 40-50k a year in car payments anyway, I’d like to minimize that while getting a NICER car. Stay on topic please.
I know that, but in reality I lose much more money driving my NSX and my other 4 cars because I lease and pay depreciation that I’ll never get back.
I’d rather driving a nicer exotic and save 30-40% on yearly expenses by driving something that still has a warranty, low miles and has taken a huge hit depreciation wise.
Agree with yinzer the gt3rs is your best shot. But also agree that you are being pretty optimistic. I don’t live in your world but It’s going to be tough to buy something significantly below market value then drive it for 6 months sell it on and lose less than the $1300/mo you spend on the nsx. But it sounds like you have the money so give it a shot.
For sure, I love the GT3 RS… but imagine I drive the NSX til lease end. 36 months later. My “payoff” would be about 95k.
What’s VERY likely to happen is this, NSX’s start flooding the market with 20-30k miles. Values plummet from maybe 105k to said 95k. I have now lost every single dollar of a $1,365 a month I’ve spent.
Let’s say I get a GT3 RS, I buy one for like 180k (plenty on the market right now so I’m planning to throw out many offers). I drive it two years. Put 10k miles on it and it sells for 170k. Exotics have a level they do NOT drop under. 15 year old Lamborghini Gallardos still can’t be bought for cheaper than 75k unless you go salvage title. Whereas 15 year old BMW’s that were 130k new are worth pennies comparatively. I’m not saying I’m coming out ahead necessarily, I’m just saying cost to own might be say 600-800 a month instead of 1400 after everything is said and done.
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Can I expect 190k out of it in 5-6 months time for a quick sale?
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Ok so now two years. That’s a little different. But even so assuming you finance 160k at 4% for 60 months first year you pay just shy of $6000 in Interest year two just shy of $5000. That’s almost $11000 in Interest. Obviously those numbers go up the longer the term/more financed.
I totally get this line of thinking. It’s how I was able to afford a Lotus right out of college. Bought one for $26k, didn’t put a penny down on a finance, paid like $500 a month for 2 years, and ended up selling it for $36k 2 years and 30,000 miles later.
Where do you live that there is no sales tax? That’s what’s kept me from getting something like the Evora S, as those have hit their price floor at $50k, but the sales tax alone would be nearly $4k for me. Let alone something nicer like an MP4 since the sales (and then consequent personal property tax) would be enormous.
I get this line of thinking as well. You just have to remember a ‘garden variety’ exotic will continue to depreciate pretty much in a straight line until its bottom (and the bottom will itself change if there is a macroeconomic event like a recession). So if the bottom is 75k, a 3-4yr old Huracan is 6-7 yrs away from bottom and will lose 100-115k in those 6-7 yrs.
Just like your BMW analogy, a 190K Huracan will depreciate much more than a similarly priced, highly desirable Porsche like a 997 GT2 or GT3 RS.
In the end it’s about the smile on your face and satisfaction from driving a dream car. Don’t sell yourself short worrying too much about resale value.
GT3RS isn’t a normal exotic though, priced were inflated due to collectors and speculators. With the new one coming out soon, I don’t see the 2016 model keeping its value. Keep in mind the Porsche bubble has deflated quite a bit already. 911 R is down to $350k from over $500k two years ago. GT3RS is down to ~190k from 250k, etc. You’re basically speculating that prices won’t keep falling even though a new model is out next year. Combine this with the rising interest rate environment, I really don’t agree that you’ll be able to buy at 180k and sell two years/10k miles later for 170k. IMO it’ll be more like buy at 180k and sell for less than 140k because you have the highest mileage example on the market.
Yes a few specific older exotics have levelled out their depreciation curves, but neither the 458 nor the hurucan falls under this category. Maintenance is also a significant issue since you’ll actually be driving them.
If you want a exotic with a relatively low cost of ownership, you should probably be looking at first gen R8s and Californias.
