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the concept of relative value in a wasting asset is not limited to cars. in fact the most expensive wasting asset most people ever buy is their house. any good purchased for consumption and constant use is a wasting asset.
if you buy a car for bling reasons: to be seen, to keep with the jones's, because you think it will get you laid or a host of other make believe reasons you are spending money on something which will NEVER ammortize its costs over the life of the purchase. this concept alone deems buying a new car for 30 or 40k or more a fools errand. which is why billions is spent on advertising to overcome our common sense. without absurd financing deals these purchases in the volumes the car makers desire become impossible.
on a mathematical basis. if you buy a sound 240 for 2000-3000 dollars or even less and are good about up keep your cost of ownership over 10 years time becomes a few dollars a day to drive a safe car in comfort and 'elan' (in my opinion). if you buy a 40k car the same day as your 240 for 3k over the same 10 years period you new car will cost you MANY multiples of a few dollars a day.
you friend first of all has no understanding of mathematics and why math is never wrong. his statement has a madison avenue sound to it which obstensibly seems logical but is in fact nonsense and devoid of basic mathematical understanding and the concepts of wasting assets.
only the most rare of cars value ever keeps pace with the cost of its repair. they are by definition bought to consume. virtually nothing in human existence bought for daily use grows in inflation adjusted terms in value....just look at bubble real estate.
example: here in masachusetts the john hancock tower, bostons signature building was sold in a foreclosure last week with 1 bidder for 20 million dollars and and assumption of 660 million dollar mortgage (at 5.6%...try and get those terms now for that amount))
the previous owners paid 1.3 billion in 2006. if you factor in the low mortgage rate the new buyers bought this crowning i.m pei designed office tower for a price which is 97% financed at way below market rates for the amount involved.
buy the good 240, keep it up and at the end of 10 years your friend who made the stupid statement below
..............the values of the 240's are not keeping pace with the cost of their repairs and parts 200 ................
will be 1000's of dollar poorer than you are for not buying a sound 240.
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