Is it best to typically wait until the end of the loan term to go into your next bad boy? How have most of you gone into your next? Although I'm happy with mine currently, I know I'll be going into another and I'm already looking.

 

What does "best" mean?

Certainly it's true that the depreciation curves and the wear & tear curves don't match. Therefore the most expensive miles are the earliest ones. As time goes on the depreciation slows, so subsequent miles cost less. If you want the cheapest miles, on average, keep the car until it is worn out or, better still, buy the car used and then keep it until it is worn out. The real question is how much you want to be driving a new or near-new Corvette and how much extra you're willing to pay for that.

The best bang/buck in the Corvette world right now is probably a low-mileage, mint condition '98 or '99. $20k or less, a 200,000 to 300,000-mile car, and it still runs 12s (M6) and goes over 170. Which ought to be enough. If you want newer or faster, pay more, to a lot more.

 

Unfortunately, that's me. Even though I have a 0% loan with about 22 month's left, I'll be taking a good loss in the next few years anyway. But like I say, I know I'll be doing something, hopefully, and trying to decide if earlier is better than later.

 

You have a 2007 C6. You say you're happy with it but you're "already looking" to replace it Why?

Unless you're contemplating a move up to a Z06 I can't see any benefit that would justify trading-in your C6 just to buy another C6. I doubt there's any financial advantage jumping cars so soon, in fact, probably just the opposite. Everyone sees things differently but I'd try to pay-down the loan early and build-up some equity in the car...make a change when there's really a good reason to do so.

 

Right Wayne and good advice. Going into a Z is what I'd really like to do and by me saying that I'm already looking, I'm just trying to get my bearings of what level I would want in a C6 (if I go into another), when that time comes.

 

There will always be newer and better cars available. My only advice is not to get upside down in your loan. Only you know what is best for your financial situation is.

Good luck!

 

Depreciation curves are easy to figure. Go to Edmunds and do a new car invoice price on a typical Corvette, then do a used-car appraisal on a similar car. Use the "year" feature to walk the appraisal back a few years. Record all the prices, plug them in a spreadsheet, and calculate the percent drop per year.

For example, a 3LT Coupe, no other options, black, in my zip code, has an Edmund's TMV of $47,990. I'm not saying that's a good or bad price, it's just a basis for comparison. An '07 with "typical options" (looks like a 3LT) has a private party price of $36,638, an '06 $33,111, an '05 $29.261. I think those values are a little high, but they give us a basis for comparison. These yield a loss of about 24% the first year, 10% the second year, and 12% the third year. Me, I usually use numbers of 20-15-10, but close enough.

So, if you want that brand-new Corvette, figure on paying a premium of 20-25% over the cost of the same thing that's a year old, 30-35% over a two year old car, and 40% or more over a three year old car.

But that's just on average. As we all know, there are extenuating circumstances. For example, '07s took a larger-than-normal hit when the '08s were announced with a big power increase and NPP. First-year Z06 buyers generally paid a premium and are now getting creamed with '08s at invoice or less. In most years discounts are anywhere from unknown to "decent". Right now, discounts are insane. Assuming prices recover, that will mean that a new car bought now will depreciate less.

So, here's how I decided I wanted to go for an early '09 Z06: discounts are as low as they're ever going to get, barring the possibility of a couple of grand or so in GM incentives. By August the difference in wholesale value between an '08 and '09 will be $5-6k, but based on the deal I got and a projected 2% price increase, I'm only paying about $2,500 extra for an '09 over an '08.

Then figure that interest rates are as low as they're going to get right now. The Fed will have to raise them later this year to fight the devaluation of the dollar. When you add in the current real-world inflation rate, which I personally believe to be closer to 10-15% than 4%, then borrowing money at 4.25-5.75% is highway robbery - in my favor. Also factor in that steeply rising materials costs will force GM to some large price increases just as soon as sales are out of the doldrums.

I doubt there will ever be a better time to buy a Corvette, financially, than right now.

I'm not saying I'm right, only time will tell, but that's how it looks to me.

 

Sounds like you're very knowledgable and know what your talking about. A little more than picking a year, a model, options, and seeing if you can handle the new payment. Alot to consider along with the fancy ciphering.