Are prices coming up?

[MWS]

Prices may be coming up, but this doesn't count inflation and value of dollar. For example, I bought my Boxster in 2009 for (what I thought was a steal) $15,000 (as an FYI, it's an 01 that had about 32,000 mi then). I figure that with the TLC, upgrades and low mileage I've put on, if I could find the right buyer I *might* get $15,000 (not that I plan to sell). Sound like a pretty good deal, right?

But let's figure in adjusted dollars; according to the Bureau of Labor Statistics consumer price index, prices in 2018 are 17.46% higher than prices in 2009. The dollar experienced an average inflation rate of 1.80% per year. In other words, $15,000 in 2009 is equivalent in purchasing power to $17,618.57 in 2018, a difference of $2,618.57 over 9 years. Now I suppose that I need to figure in "major repairs" (IMS upgrade, water pump, etc) and I'm quickly approaching $25,000 in adjusted dollars....still excluding regular maintenance costs. My point is that even if I were to sell and got the magical $15,000 I originally paid, I've still lost about $15,000.

This is why I don't fixate on resale...price is subjective, and unless you flip almost immediately, you are going to lose money. Actually, I rather reject the term "lose money" as the way I see it, I just paid for a whole lot of fun. If you look at it that way, it's pretty cheap, and money well spent.

[Cunningr]

MWS makes a great point even if you hate to think about it. Fact is most car purchases are a terrible investment. But I think like mws paying for fun.

[Geof3]

Originally Posted by MWS

Prices may be coming up, but this doesn't count inflation and value of dollar. For example, I bought my Boxster in 2009 for (what I thought was a steal) $15,000 (as an FYI, it's an 01 that had about 32,000 mi then). I figure that with the TLC, upgrades and low mileage I've put on, if I could find the right buyer I *might* get $15,000 (not that I plan to sell). Sound like a pretty good deal, right?

But let's figure in adjusted dollars; according to the Bureau of Labor Statistics consumer price index, prices in 2018 are 17.46% higher than prices in 2009. The dollar experienced an average inflation rate of 1.80% per year. In other words, $15,000 in 2009 is equivalent in purchasing power to $17,618.57 in 2018, a difference of $2,618.57 over 9 years. Now I suppose that I need to figure in "major repairs" (IMS upgrade, water pump, etc) and I'm quickly approaching $25,000 in adjusted dollars....still excluding regular maintenance costs. My point is that even if I were to sell and got the magical $15,000 I originally paid, I've still lost about $15,000.

This is why I don't fixate on resale...price is subjective, and unless you flip almost immediately, you are going to lose money. Actually, I rather reject the term "lose money" as the way I see it, I just paid for a whole lot of fun. If you look at it that way, it's pretty cheap, and money well spent.

At the end of the day, MOST cars fit into this category. If looking at cost of ownership vs resale... 99% of the time it’s a loosing proposition. I would have never thought that my 911 I sold for 14k (good money then) would be pushing 50k 12yrs later. I do believe the Boxster bottom has been reached and prices will start to creep up. Another thing to consider is the death of the flat 6 and internal combustion engines in general. It will be interesting to see in a couple of years. For now, time to go drive the snot out of this little car and keep it running as good as it can for the time I own it. No plans to sell, I think I’ve got a pretty good one!