I agree. As the buyer, the situation is the flip side of the seller’s. Your friend is probably getting the best of both world’s: avoiding the initial depreciation hit and getting relative valuation stability by year 3 or so. Smart move.

An acquaintance of mine, who I’ve known for about 10 years, does just the opposite. He trades vehicles every 2-3 years and buys a new vehicle. In the time I’ve known him, I’m fairly certain that I could have bought a nice Porsche 718 or Vette for what he’s lost in total depreciation and dealer markups. Only his pension and his wife’s salary allow them to roughly out earn their stupidity when it comes to money matters. They’re both financial idiots (although very likable people - we can discuss his boat later.

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Posted by molsusports

Member since Jul 2004

36168 posts

Posted on 9/12/23 at 7:44 pm to Jag_Warrior

quote:
An acquaintance of mine, who I’ve known for about 10 years, does just the opposite. He trades vehicles every 2-3 years and buys a new vehicle.

I see this too. Worst possible value for the buck.

quote:
we can discuss his boat later

Boats are just killers. Not just the tens of thousands (or hundreds of thousands) of purchase price. The costs of maintenance, docking, insurance, and repair are enormous.

I see way too many middle class or lower upper class people destroying themselves financially (without even realizing) with what is a luxury purchase. Renting a charter is probably the best option for the ten or fewer times a year that recreational boaters get out on the water.

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