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Originally Posted by David70
Good information and I forgot about the "depreciating asset" that really has minimal depreciation. I am also fiscally conservative and wondered about overall costs.
Currently driving Z4M - weekend car, 2013 Cadillac ATS (55k miles, perfect condition, maybe $13k value) and wondered which would have a higher 5 year cost, sell the ATS and buy a new M3 or keep the ATS for 5 more years and buy a car similar to your Ferrari in value (not sure i really want a Ferrari). M3 would have far greater depreciation but close to zero repair, M3 would be much cheaper to insure compared to ATS & high end weekend car.
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Yep - it's all in what you want and how you want to structure it, along with an appropriate consideration of risk.
Personally, I've wanted a Ferrari forever, so it was a goal that I was determined to make a reality. Most exotics that are over a few years old typically don't have a notable depreciation curve after a certain point, so long as you keep the mileage in check.
I was surprised at insurance costs - they are actually quite low. I have extremely heavy insurance on the car, but if I was to up my deductibles to $2,500 or so - the annual premiums would have been below a grand. That's not bad.
I've typically always had a weekend car (although nothing at this price point before) and other than taxes and M&R, rarely have I sold it for much less than I paid for it. Last two 'fun cars' were a Miata and an Alfa Romeo. Both of those I made a profit on the sale, but washed out as a slight loss after M&R over the ownership period. So you can do it on non-exotic cars too, just takes some planning.
It seems that moderate mileage E92 M3's are at the bottom of the depreciation curve as well right now - so if an M3 is something you are looking at, that might be a decent prospect as well.