– by Julian Sale –
People often wonder what happens to the value in luxury vehicles. It’s a great question. Most people know that Hondas and Toyotas last nearly forever, and hold their value better than others – it’s not a secret. But the fine, fast, and fun European cars we see on the roads demand big bucks when new, then plummet in value more quickly than their Japanese counterparts. This is a consistent trend, and has been for decades. Odd, since quality, performance, and technology is truly built into these vehicles. Have you driven in or touched a 2014 Range Rover? I dare you to. Same goes for the Porsche Cayenne – run your fingers along the belt line of the vehicle: everything is phenomenal about uber-lux vehicles. For argument’s sake, let’s assume the said car was $100,000 when new.
Here’s the catch … not many can buy these steeds. As a few years pass, and the vehicles are traded in, re-sold, and loved again by new owners, they fetch less money. Newer models populate the showroom floors offering better economy and better safety. 12 or 13 years on, the Euro-ride is still well cared for and looks great. Every mile it’s driven has been a real pleasure. But while it has faithfully and swiftly hauled it’s owner and occupants around, it carries repair bills equivalent to the smiles it’s provided – big. And the fuel economy is, well, not good compared to current offerings.
Who’s the next owner going to be? Not the same kind of person who signed up the first or second time. It’s a quality minded person who sees the value and can’t afford to pay for a newer version. But this buyer knows that repair bills are looming, and is prepared to pay for a few – negotiating a low price in order to be able to afford to drive it.
But before buying, this buyer will also look at everything on the market that compares in style and size, all based on price. There will be a great selection of newer, lower-mileage vehicles that look great on paper, but lack the character of the classic for the same price. The facts are really hard to ignore, unless you happen to be passionate about cars. The once spectacular, and still wonderful, car is now worth $8-12k and has 200,000kms or more.
So where does the value go? The truth is, when you buy the best quality, sexiest, most fun car, you’re not actually buying the car. You’re buying grins, giggles, smiles, road trips, memories, holidays, kids’ college graduations, speeding tickets, and so much more. The car is literally just the vehicle to get you to the good times.
