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Originally Posted by bloozemanAZ
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Originally Posted by LakeSurfer
Ok, I get it if you're buying a $50k car that makes sense to me and yeah no matter the wealth or income people generally wouldn't throw money out like that, however, if you cared that much about such a small amount of money (in comparison to the price of the car) then why would you even consider buying a new car?
New cars depreciation rate for the first month alone can be up to 10% and buy the end of the 1st year you can add another 10-20% to that. For a luxury car it's probably on the higher side of things. So worst case you lost $40k in 1 year of ownership. I just can't see someone that frugal would buy/order a new car. I think it's out of spite or something else.
Another note, 99% of cars are terrible investments so why would you even look at it any different? If you buy a car, any car, you lost money.
It's a silly marketing gimmick. If you don't think that BMW is squeezing that individual paint out of you somehow than you're crazy. They'll make up for it by marking up the car in other areas. It's pretty easy to hide $5k in a 6 figure Coupe. Also to generalize, people are not that bright for the most part. If you sold a gallon of milk for $20 and told everyone that this is on sale from $50, people will still buy it.
At the end of the day for probably most if not all cases, if someone has the means to purchase an individual paint 850, regardless if it's $5k or not they're going to fulfill that purchase.
This is just a marketing gimmick to give more notice to a car that is sort in the shadows.
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Originally Posted by Resjudicata
also in response to your 5k, not everyone that buys 6 figure cars throws money around. 5k is a lot, and I didn't want the carbon fiber or B&W stereo because that was 5k over my price. while I'm glad I got them, I was able to negotiate a better price.
For some of us entrepreneurs that built a business and worked hard to get that $140k, we don't want to throw it away. Spending money on unnecessary stuff is a quick way to lose money. options are a guarantee 0, unless you lease which is a different topic.
I bought a 2019 m850i convertible (msrp with fees 135k+) fully equipped for a bit over $110k delivered to me. without options it probably would have been $100k. if I added 5k paint, it would have been $115k. In all 3 cases, now that the 2020 models are out, I bet my car is probably $90k. unless you find the right private buyer, all of the cars are probably $90k.
I'd rather lose $10k, vs $20 or $25k and especially not $45k. The key to avoiding depreciation on a brand new car is to get 0 options and $0 addons; and also negotiate a price well under msrp at least 20%. it's not always possible but it's the goal.
still depreciation, but less. also sometimes if you wants something new, there is no alternative. like a 2019 m850i there was nothing equal for the price. in 3 years, you can buy an off lease one but you have to wait until 2022 or 2023.
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Originally Posted by Resjudicata
the m8 gran coup is probably a hard seller and they are just trying to pump early numbers. so I partially agree you that it's marketing but it's not a gimmick. A gimmick implies a joke or toy like the prize in a happy meal. this is more like a discount or sale like Black Friday or President day sales with discounts.
I'd imagine most people who wants 4 doors have kids. those with kids are going to have less money to spend than those without kids. they are also less likely to go for higher engines vs lower, assuming all else the same. so something like the m40 or m850 gran coup might sell better than a true m8 4 door.
also those looking for power, might go full m8 competition. so my random guess is the m8 gran coup 4 door will have a very small market demand, especially if it's priced along with the Porshe Panamera.
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Agree with @Resjudicata on all points. In my case to your point regarding that you "... can't see someone that frugal would buy/order a new car. I think it's out of spite or something else." Count me in on the frugal description as that was a lesson taught to me by my parents. Frugality aside everyone has wants and needs. The difference being the former is often in no consideration a wise way to spend money.
That said I went eyes wide open into buying the M850i and even more so was adamant to order one to my exact specifications. After comparing the stock H&K vs B&W my absolute requirement was for the latter (I'm an ex musician and an audiophile). I was initially going to forgo the carbon roof just to ensure the B&W audio. However, I did want the carbon fiber roof so weighing its $3K vs the $5K Verde Ermes paint option it was a no brainer decision given the carbon fiber roof has a true function vs pure aesthetics. Truth be told I was not going to order the $650 glass controls but my wife fell in love with that during a couple of test drives so using my $1K gating criteria for wants it too became a no brainer decision as well.
Finally, to the point on frugality it along with a career that affords me to illogically spend money on a want when I so desire to do so is why I have the M850i in the first place. I could have easily ordered a M8C but given my needs are for a daily driver that can perform when I want to vs driving on the track it fit the bill perfectly. On the other hand if I wanted to hit the track a M8C would be in the garage no questions asked. Even in that case unless BMW was offering to waive the $5K on custom individual colors I still would have went with Almandin Brown as I love it and tried to talk my wife into it for her X5. |
Perhaps our definitions of frugal are vastly different.
I'm pretty relaxed with my earnings and after investments, bills and so on are taken care of it's a free for all with what's left. Mainly because we have worked our way up the ladder in our careers to do what we want when we want (within reason).
Again, a new car will depreciate instantly when the keys are handed over to you. You lost more than $5k in the 20 minutes it took you to spend the $150k. New cars can expect 20-30% depreciation in the first year, luxury cars are on the higher side. A frugal person would buy an off lease, low milage, 1 year old vehicle where the big chunk of depreciation has already taken place.
I'm certainly not saying that you should voluntarily give them 5 grand but it sounds ridiculous when someone says, I was gonna buy a $150,000 car but the paint cost $5k so I'm just gonna get a Camry instead because that $5k is a real big financial hit.
I really don't think there are to many "cheap" people out there driving brand new M8's or 850's.
We like deals not because of the numbers but because it's a "deal". It's a good feeling. I recently ordered a new table saw that was almost $2,000 but what sold me was the free shipping. Shipping would've been maybe $150. I can afford the $150 shipping but I wouldn't feel good about it, I wouldn't feel like I got a deal. It has nothing to do with frugality and everything to do with emotions and feelings.
Just my opinions though.