The most accurate description of Drift Tax

"Dsscats" (dsscats) 11/16/2014 at 16:16 • Filed to: None

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Cough cough entirety of the S chassis community.....

The imaginary monetary value added to any popular rear wheel drive Japanese sport compact at resale due to the fact that they have the ability to drift, and are followed by large groups of fans modifying them to perform at a higher spec.

Unfair to the average buyer, nothing new to the followers of the trend.

Say the Blue Book value of a Nissan 240sxis $1000, now say that you look in your local classifieds in search of one.

You search for a 240sx with the options you prefer, such as a manual transmission. Now comes the disappointing part, the lowest asking price for the car specified is $3000, a large jump from the true value, and a classic case of "drift tax".

In this case, the inflation is due to the fact that the Nissan 240sx is a very popular car in the drifting "scene", praised by fans for it's "capabilities". But most often you will find that these cars do not appear to be anything particularly sporty in stock form, with some you even might consider them to be nothing but eco-boxes dressed up to appear as something they aren't.

"Drift tax" varies in different parts of the world, the West Coast of North America is notorious for high inflation. Keep in mind that this does not only reach out to the 240sx, but almost any popular RWD Japanese sport compact.

Clown Shoe Pilot > Dsscats 11/16/2014 at 16:33

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Someone doesn't understand how "value" works. If the book says 1000, but all the ones for sale are 3000, and they're selling for 3000, the book is wrong.

Market forces, yo.

ly2v8-Brian > Dsscats 11/16/2014 at 16:37

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Honestly one of these stock would make for a fun DD.

E30Joe drives a Subaru > Clown Shoe Pilot 11/16/2014 at 16:39

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This x10000000

Dsscats > ly2v8-Brian 11/16/2014 at 16:39

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I'd love to get a bone stock Kouki.

signintoburnerlol > Dsscats 11/16/2014 at 16:46

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240's are a bit undone when stock. Great when modified.

Think of it like an FRS or BRZ. The car is meant to be modified.

GhostZ > Dsscats 11/16/2014 at 16:52

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RGH SO MUCH ECONOMIC MISINFORMATION

Improper use of the words "Tax", "monetary value", and "inflation."

I can describe the "Drift Tax" in just one sentence:

"The "Drift Tax" is a demand-side price floor, created by a very steep demand curve of used car buyers which only exists only when specific mechanical, cultural, and after-market conditions are present, most of which are not readily apparent using normal methods of vehicle valuation involving its usefulness as transportation."

There's a HUGE difference between a "tax" and a price floor or a specific demand curve. The problem is NOT with the people "paying too much" for the 240SX, but with KBB using a poor model for valuation of the car that overlooks real-world market conditions.

When you buy a 240SX, you have to get in line. In front of you, there are TONS of people willing to pay $1500, $2500, and $3000. Why? Because they are purchasing not just a hunk of metal, but something that serves very specific cultural, aftermarket, and mechanical conditions for them. The only way you will buy the 240SX is if you jump ahead of them in line by paying more. It's NOT that these people are "overpaying" for what they get, it's that they are paying exactly for what they want (provided they aren't misinformed, which I admit a lot of buyers are) but you don't want what they want, therefore you wouldn't pay for it.

Axial > Dsscats 11/16/2014 at 16:58

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...eco-boxes dressed up to appear as something they aren't.

Describes every Japanese performance car outside of the Fairlady, GT-R, and Toyobaru right now. Yup, even the WRX, which is an Imprezza dressed up by the factory.

OPPOsaurus WRX > Clown Shoe Pilot 11/16/2014 at 17:48

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supply and demand blah blah blah

Clown Shoe Pilot > GhostZ 11/16/2014 at 17:50

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So what you're saying is "Market forces, yo."

GhostZ > Clown Shoe Pilot 11/16/2014 at 19:03

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