Trickle-Down Caronomics?

"revrseat70" (revrseat70)
10/20/2015 at 20:39 • Filed to: None

I was on my way home from work and ended up at a stop light behind a Domino’s delivery car, which happened to be an E39 540i in fantastic condition (pre-2001, based on the tail lights and no DRL). This is most likely not a car handed down to a 17 year old, but one that has been purchased (judging by the look of the driver) It got me thinking about Top Gear challenges, and how despite everyone’s fear concerning the electronics in modern cars, and their long-term reliability, I have been seeing significant cars from well over 12 or 15 years ago still on the road, and in fantastic condition. I don’t remember looking around in the mid 2000’s seeing performance cars from the late 80’s and early 90’s this frequently. Does this mean that the automobile is becoming so reliable that they are trickling down more effectively than the dollar: better than Reagan could have ever dreamed of? Does this mean the plethora of sports cars made in the last 20 years plus the increased efficiency will lead to one really fantastic hoorah before electric cars: wherein speed and quality becomes evermore accessible to every enthusiast? Just food for thought

DISCUSSION (15)

RamblinRover Luxury-Yacht > revrseat70
10/20/2015 at 20:51

Nitpicking for the sake of picked nits: Reagan did not, contrary to popular myth, refer to plans as trickle-down economics. The phrase originates with his political rivals.

If only EssExTee could be so grossly incandescent > revrseat70
10/20/2015 at 21:15

In the case of that 540 it was probably a case of the car outlasting its depreciation. Cars like that will hold initial value much longer than “normal” cars, but once they hit a certain age or mileage their value drops like a rock.

These sharp depreciation curves are like that for a reason (cars get unreliable and expensive past a certain age), but cars are getting more reliable and better built, and that age hasn’t been pushed back to reflect this.

Dr. Zoidberg - RIP Oppo > RamblinRover Luxury-Yacht
10/20/2015 at 23:26

Wasn’t it actually Bush Sr. who called it “Voodoo economics” while trying to win the Republican primary in ‘80?

revrseat70 > RamblinRover Luxury-Yacht
10/20/2015 at 23:44

I knew that. But since that’s how people refer to his policies, it would make sense to use that terminology so that we are on the same playing field.

revrseat70 > If only EssExTee could be so grossly incandescent
10/20/2015 at 23:47

Exactly my point. Will the market ever begin to operate under the new order that says 100,000 miles isn’t actually that big of a deal, anymore?

If only EssExTee could be so grossly incandescent > revrseat70
10/21/2015 at 00:17

Meanwhile some cars just completely defy market trends. My mom’s 25 year old Wrangler could fetch an easy $3k right now. If it were any other vehicle of the same age and mileage it would be at most worth $1.5k.

RamblinRover Luxury-Yacht > Dr. Zoidberg - RIP Oppo
10/21/2015 at 08:58

Yep. THANKS A TON, GHW

revrseat70 > If only EssExTee could be so grossly incandescent
10/21/2015 at 16:01

I think that has to do with three things: Its super utilitarian styling hasn’t changed in so long that a wrangler is a “jeep” like a kleenex is a tissue. Like a Porsche, it stays iconic that way. Also, the 4.0 straight 6 was and is bulletproof. Finally, because of those facts, people actually get good use out of them as offroaders, once their original owners decide they aren’t good for road use anymore.

davesaddiction @ opposite-lock.com > revrseat70
11/16/2015 at 13:44

Related: I’m wondering if it’s a smarter move to sell my German supersaloon (and get another one with fewer miles) before mine rolls over 100k. Seems like some people still don’t like the idea of buying a car that has crossed that threshold.

revrseat70 > davesaddiction @ opposite-lock.com
11/16/2015 at 15:36

I would doubt any resale value increase you would see would offset the hit you would take on tax and title.

davesaddiction @ opposite-lock.com > revrseat70
11/16/2015 at 16:00

You’re probably right, but I may do it anyway - ha! The most desirable of the E90 M3 line are the ones with the Comp package, which only was offered on the 2011 model. Add manual transmission and it’s even more of a rare bird... If a few more years pass and nothing else draws me away, I may swap my ‘08 out for one of these near the bottom of their depreciation curve.

Unrelated: I test-drove an ND Miata this weekend (I fit!) and really enjoyed it. I may have done a couple powerslides in a big parking lot... Could definitely see owning one someday.

revrseat70 > davesaddiction @ opposite-lock.com
11/16/2015 at 18:10

If they make a Speed version, we are getting one. We saw an ND at the last CNC I took my wife to and she was super into me getting another miata

davesaddiction @ opposite-lock.com > revrseat70
11/16/2015 at 18:18

Sweet, but I’m not sure if you should hold your breath too long for the Speed... I’d love to see one, too, and I don’t understand Mazda’s hesitation, but it seems like an outside chance that we’ll actually see it.

revrseat70 > davesaddiction @ opposite-lock.com
11/16/2015 at 18:53

My thoughts exactly (seeing as the NC never got a speed version). But one can dream. If a speed doesn’t come for 3 or 4 years, I’ll just pick up the sportiest one I can used and tinker with it

davesaddiction @ opposite-lock.com > revrseat70
11/16/2015 at 20:52

Yeah, I won’t get one until they can be had for about half of new. Thinking it might be a good option as my 9 year old’s first car... Not practical, but fun and “educational”.