Re: Hello World! I would like to try something similar in India and I believe it would be possible. But not the type of cars listed above.
US market is very different. Volume and competition are key for a consumer to be successful like this. Every single car I had was brand new. So most folks typically shy away from this purely due to depreciation. Almost all cars I've gotten 10% off. For instance, I purchased the first McLaren at 10% off and the next one I leased on June 30 to take advantage of year / quarter end (when dealers make a big push) and got 17% off. This helps soften depreciation hits or load balance it between myself and the manufacturer or dealer. Win win for all parties involved (including banks add they get most interest).
I learnt from a lot of US sites (like leasehackr) the art of negotiation, timing, deal proposals and what is realistically possible. That has saved me a lot of money which goes back into the budget so that I have more car for the money. For instance I got 20% off on the Volvo which made lease payment a no-brainer.
And for most cars, the first year annual service is complimentary. And since my cars don't stay with me beyond 1-1.5 years, other than paying a monthly amount for lease or loan, there is no other outflow. McLarens were outliers in this regard. Naturally, I had highest post purchase expenses associated with them.
Specifically, total cost of ownership for McLaren 720S was just around $3k/month. The car is a steal at that price. So, when I look back at the 1.5 years I had it, I have a feeling of satisfaction - worth what I spent, gave me experiences I wanted and brings back find memories when I look back in time.
When I switch cars, I'm looking forward to that change and what the new one has in store vs being considerate of what I'm giving up. So moving to less powerful or less expensive or lesser of a brand is irrelevant to me. And I already know when I acquire a new one, it has fixed time with me. So I look forward to enjoying it to the fullest.
I go after cars I find have maximum Value for Money, stand out a little in the crowd, make me want to drive them, make me want to look at them. So each car to me is "a 100% worth" what I spent on them.
Of course, all of the above is moot if there isn't income to back it. That said, I represent what a typical 12 year old Software Engineering professional looks like. 10s of 1000s of us in the US. We do not have any business or alternative sources of income to add to our annual compensation. Every single one of us can afford what I described. But priorities of each is different.
Personal philosophy that is subjective below, feel free to skip ( this is the best thread to share it than any other thread where I'd rather be objective)
Automotive domain makes me happy. I treat the cars as Return on Investment for all the work I do. So if I spend some time working, then it's equally divided to contribute to my present and future. Cars represent a significant part of my present and future, just like real estate, food, travel, family, social experiences or luxury items do for others.
I have a realistic amount in my mind of what I'll need in future to continue a specific lifestyle. My cash outflow is driven by validating both my present and future equally vs biasing it for future as most folks would do. Since collecting these experiences represents a sizeable portion of both future and present, every $1 lost in depreciation towards car is actually intended investment towards my happiness. |