Hertz back in the game, check your local airport
08-20-2018, 05:02 PM
#41
Le Mans Master
I am very cautious about buying sports cars and trucks. They can be driven hard (towing, track, whatever) and not worth deprecation relative to the wear and tear. I'm not really worried about someone flogging an S-class. I am worried that someone flogged their Z07 or towed horses through mountains with their 1500.
What people don't realize about the big initial depreciation hit of the first 5-10k miles is that those are the best 5-10k miles. Odds are, you're not getting brand new tires, brake pads, etc. You're also getting 10k under warranty. If you assume a C7Z will be worth $25k (net present value) with 100k miles on it, that's $55k of depreciation over 100k miles. Well, yeah, it makes sense that you have $10-15k in the first 10k miles. $1k is easily consumables pro-rated. You get the car when it's the latest and greatest and newest. You get warranty. You get (in theory) the most trouble free miles (or at least a loaner when it's not).
Buying with 5-10k miles is probably the best deal, but it's not laughing to the bank. Even straight pro-rated (with assumes miles 99,000 to 100k on a 10 year old car with no warranty) are worth as much as miles 0-10,000 AND you get brand new tires and brake pads and oil changes, AND you never have to pay for a single repair, you're "saving" about $7k. Having it the first 10k miles, being able to spec it how you want, consumables, 2 (+1) oil changes, warranty, not having to worry about how it was treated, not having to put a single penny into etc are worth the extra $7k to a lot of people. You're driving a car without any rock chips, seat wear, etc.
And let's be realistic- you're not getting brand new tires, brake pads, rotors, oil, diff fluid, trans fluid, no paint chips, etc. You're going to put, on average, a few grand into maintenance up to 100k miles. I did the math. It's a "better" deal, but not by a whole ton. And it's not even anything to write home about if you keep it for about 25-30k miles if you value anything other than straight monthly payment. Heck, once you factor in a point or two of interest, it's really about even. You're basically just pro-rating the car.
What people don't realize about the big initial depreciation hit of the first 5-10k miles is that those are the best 5-10k miles. Odds are, you're not getting brand new tires, brake pads, etc. You're also getting 10k under warranty. If you assume a C7Z will be worth $25k (net present value) with 100k miles on it, that's $55k of depreciation over 100k miles. Well, yeah, it makes sense that you have $10-15k in the first 10k miles. $1k is easily consumables pro-rated. You get the car when it's the latest and greatest and newest. You get warranty. You get (in theory) the most trouble free miles (or at least a loaner when it's not).
Buying with 5-10k miles is probably the best deal, but it's not laughing to the bank. Even straight pro-rated (with assumes miles 99,000 to 100k on a 10 year old car with no warranty) are worth as much as miles 0-10,000 AND you get brand new tires and brake pads and oil changes, AND you never have to pay for a single repair, you're "saving" about $7k. Having it the first 10k miles, being able to spec it how you want, consumables, 2 (+1) oil changes, warranty, not having to worry about how it was treated, not having to put a single penny into etc are worth the extra $7k to a lot of people. You're driving a car without any rock chips, seat wear, etc.
And let's be realistic- you're not getting brand new tires, brake pads, rotors, oil, diff fluid, trans fluid, no paint chips, etc. You're going to put, on average, a few grand into maintenance up to 100k miles. I did the math. It's a "better" deal, but not by a whole ton. And it's not even anything to write home about if you keep it for about 25-30k miles if you value anything other than straight monthly payment. Heck, once you factor in a point or two of interest, it's really about even. You're basically just pro-rating the car.
Last edited by village idiot; 08-20-2018 at 05:04 PM.
08-20-2018, 05:07 PM
#42
Le Mans Master
Member Since: Oct 2005
Location: Left Coast, San Diego
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Duh! All cars depreciate. The new ones just do it MUCH faster.
I did check Hertz at the airport. They do have at least one Z06 available. For about $200 a day might be worth it for a "cheap" thrill just to play with.
I did check Hertz at the airport. They do have at least one Z06 available. For about $200 a day might be worth it for a "cheap" thrill just to play with.
Last edited by Vet Interested; 08-20-2018 at 05:13 PM.
08-21-2018, 03:52 PM
#43
The thoughts about 'never buying one of these' is interesting. The cars at spring mountain sell, the old GT350 Shelby Mustangs (Hertz) are worth a fortune now. I promise you that a new Corvette will encounter less harm even it they were "tracked" than the old Mustangs did.