The Real Bargains
In our business we run into bargain hunters. Many are just tire kickers, that is they are not really going to buy anything but they love to talk cars and offer opinions. Hey, wait a minute, those are some of my best friends! But seriously, we do talk cars a lot around here, we have strong opinions, and quite a lot of experience. So what are the "Real Bargains"
Our smartest customers realize when we talk about buying the "right" car that what we are really talking about total cost of ownership. But in that equation you must also add a factor for enjoyment. Buying a slightly used Honda Accord every 3-4 years is likely the most fiscally responsible way to own a car. But we are not talking about owning an appliance. We are "car guy's" and no one reading this blog or website is interested in an automobile as an appliance. So the question then becomes. Can I own a cool car and not loose my shirt?
Absolutely. In fact that is how EuroWerkz got started. So what are the real bargains and how do we find them. There are a few rules.
Rule #1. Buy the right model. By that I mean don't gamble. The new Alfa Romeo looks great but it's a crap shoot if they will or will not be able to make this brand work in America again. So instead a used Porsche Cayman S is the smart buy in that segment. Speculating on future collectables is another no-no. I for one love full sized performance cars. M5's, AMG Merc's, etc. But the truth is they will likely never become collectable enough to own them a relatively short time and reap any benefit from desirability. Depreciation is the real enemy and it almost always wins.
Rule#2 Buy the right car. It's really as simple as this. Now stay with me here. Budgeting for the car you want requires you to be willing to pay top price. Why? because it is highly likely that the best cars will bring top price as they should. Don't be sad. That is a good thing, not a bad thing. I have never owned a car that I paid, what I thought at the time a little too much for, that didn't turn out to be a great car that I loved and owned very reasonably. On the other hand, those cars I thought were deals because they were priced a little too cheap. Let's just say even a professional has lessons to be learned and those cars almost 100% of the time were a bad decision. This is a very hard rule to stick to, as Americans we have been sold and marketed into believing there are deals to be had. On Amazon, yes, on cars, the sort of cars we are talking about? Sorry, that is just not the case. And most certainly not the case on desirable cars. Which of course goes back to Rule #1.
Rule#3 Buy previously owned. We all love that new car smell but buying new cars is, and in an effort to drive this point home, only for suckers. The initial depreciation on the cars we are talking about here is staggering and unless you can afford to buy a special limited production edition that requires a waiting list and a huge down payment there is no way to make buying and or leasing a new car work financially. Even the local rich guy can get under water in a hurry with depreciation/residual problems. I have great stories on this subject, believe me.
Golden Rule #4 and 5 Use a professional. Instead of making even a small mistake? Give up a few percentage points of this purchase to someone that really knows not only the car you are interested in but the business. Being full time and connected to this business on a daily basis, as well as a car nut, I can't tell you how hard it is to see someone make the wrong purchase when a couple of correct moves could have resulted in such a better result. Success is absolutely possible and we do it everyday.
It's just a matter of knowing what the real Bargains are.