Article: Are Classic Cars the Answer for Frugal Car Lovers?

September 9, 2019

Professor S's, of Bull In Captivity, Financial Wisdom observes that

'There are two types of people and cars at car shows. Those with well maintained, fast, depreciating new cars and those with well maintained, fast, appreciating old cars. Both cars are nice to look at, both have literal curb appeal, and both groups are fast, but the financials are vastly different.'

For example: The Cost of Depreciation on a Corvette

Since we are talking about a “fun” car, the depreciation curve is steep. Sports cars aren’t known for retaining value (in the short run). Take a Corvette. It has been a historically perfect example of a sports car. Fast, sleek, powerful. The 2018 Z06 boasts 650 hp.

Even I’m not sure why you need that much power, but then again, this conversation is not for someone who doesn’t want a sports car and is fine with their daily driver. For them, this post becomes useless information.

The 2018 Corvette Z06 comes with a price tag of roughly $80,000, not including taxes, tag, title, and other fees. But for the Corvette’s sake, we will stick with $80,000. Taking a look at the depreciation curve of this car, I present to you the current price of a 10-year-old 2008 Z06…

$40,000

That’s right, 50% of value vanished*. Poof.

The Corvette fanatics will quickly point out that this is a loss of $40,000 over ten years, so only $4,000 per year to drive a Corvette. Sure. But I .....

Click here to read the rest of this analysis.



More News