Purchase decisions - please help

[Ron]

<FONT face="Comic Sans MS">Couple of observations:

First, taxes aren't recoverable. Don't use it in your deprecation calculations.

Second, You're using a deprecation rate of approx 10% on the 2002 and 24% on the 1996/7? Why? New cars depreciate faster than old.

Third, You'll need tires and brakes on the '02, just like the '96/7, no warranty on that.

Fourth, you can get a '96/7 with an extended warranty and you should.

Fifth, regardless of the financials, if you want a Final Edition it's what you should get. A blue '96/7 will never turn Red....</FONT f>

 

[Scott J]

I'd go with the '96/'97 GTS given all of the concerns you've indicated. You can go with an extended warranty on the used vehicle and avoid the depreciation you speak of. I find the $450.00 disparity in monthly payment to be quite looming for two very similar cars. Further, I'm assuming the '96 or '97 GTS will have less than 20K on the odometer?

There are many variables to consider, but most Financial Advisors will recommend going with the used vehicle unless you can run the new car payments through a business [operating lease].

 

[Chuck 98 RT/10]

Are you buying a Viper for the investment or for driving? Don't say both. If investment is considered in any part of the equation then go with the 96/97. I don't think they will drop much more, if any, in value.

But then, I lost my *** in the stock market.

 

[Fred(DrivingSchool)Kinder]

As said earlier buy what you really want. That said consider the following. My understanding is that the max factory extended warranty is for 7 yrs from original sale date. Not much time left.

The tranny is expensive, the motor is very expensive. A motor failure will likely be a good portion of the cost difference between the 2002 and a good 97.

The 2002 has:
1. ABS and better overall braking, larger real caliper
2. Internal rear hatch release.
3. Outside Mirrors are electric, nice for parking close to a curb and on the track.
4. Switch in the glove box to turn of the alarm when it acts up which is more common on older cars.
5. Final Edition is a limited edition, Long term, I would expect it to have more value than a Blue and White 96/97 which have higher production numbers.

I would buy the 2002 Final Edition!

 

[Shakin Snake]

I would really suggest having a normal driving car along with the Viper. Something that gets good gas mileage that you can drive to work and don't really care if it sits out in the sun or the rain or the snow next to all the other A to B's. Having a car like a Viper without another car to do the dirty work in my opinion is not the way to go. You end up putting on too many unwanted miles and the Viper will eventually attract minor dings and wear and tear.

On the decision get what you can comfortably afford. If you can easily afford either one for me the decision is easy. I would go for the Final Edition. I like the ABS, the newer technology, the larger wheels and tires, the creamy engine, the warranty, the new feel and smell. You will also be in control of how the engine is broken in, which is also a factor. Also, the last year and Final Edition should also be a plus years from now.

Good Luck. Shake

 

[jimandela]

I would go final edition!
Call Woodhouse!

 

[Gavin]

ASSUMPTION - your financial portfolio is in its youthful stage.
IF ASSUMPTION IS CORRECT

DON'T BUY EITHER - Buying the Viper is a major financial setback
THESE CARS DEPRECIATE IN THIS MARKET - THE 2002 WILL DROP THE MOST IN TERMS OF HARD DOLLARS AS IT IT THE HIGHER VALUE CAR - AGAIN BASED ON THESE MARKET CONDITION.

INVEST THE 27K - CALIFORNIA REAL ESTATE IS HOT
HOLD FOR 2 YEARS - MORE IF YOU CAN - THEN SELL
RE-INVEST AS MUCH AS YOU CAN
TAKE A PORTION OF THE PROFIT AND PUT DOWN ON THE VIPER
BUY THE 2002 FINAL ADDITION - IN THE SECONDARY MARKET - 2K TO 4K MILES - YOU WILL SAVE A TON.

THE BIGGEST CHUNK OF DEPRECIATION ON THE CAR WILL BE AT SOMEONE ELSES EXPENSE AND WHO KNOWS - MARKET CONDITIONS FOR EXOTIC CARS MAY HAVE FIRMED BY THEN (PERSONALLY I THINK THEY WILL)

NOW YOU WILL OWN THE CAR OF YOUR DREAMS - ALL YOUR THEORIES APPLY - DEPRECIATION WILL PROBABLY CONTINUE ON THE CAR BUT AT A MUCH SLOWER PACE - YOU TOTAL OUT OF POCKET WILL BE MUCH LESS AND YOU WILL HAVE MONEY INVESTED.
LUCK

IF 27K IS THE SUM OF YOUR CASH ASSETS - HOLD EM MATE

 

[Kurt 97 GTS]

I say buy the year/color that you really want. I just bought my red 97 (still under the 3 yr warranty - inservice date 10/99!!) and it's going into the shop for white stripes on Monday. Sure is cheaper than a final edition and the lumpy cam is sweeeeet!!

 

[ElDiablo Viper]

Lease, and put the rest of the $ in to your investment acc. With lease you only pay for what you use. Why buy a cow when you only want milk for 3 years.

 

[Toby]

Never ever put money down on a car!!
Only pay for the car you use.

The best and only way to buy ANY car..new or used that I have discovered:

One factor is you must have equity in a property to do this.

Open a line of credit on a property.

lets say for example reasons you have 50K in a used Viper (includes everything)

Your interest rate on a equity line today is about 5%

Monthly interest on the loan amount : $208.00

Figure deprecation for the car...break it down into a monthly figure. Used would be better here. A Blue/White GTS would be a great example for this.

I wouldn't think a blue/white GTS would loose too much every year. Lets take a wild guess of 2000.00 a year (That figure would include the tax you paid and recovery of that money.)

Rounded up that would be 170.00 a month.

so for 378.00 dollars you have a Viper where you are covered if you have to sell. That could be less if the value of the car doesnt go down as much as I guess.

When it comes to tax time most can recover 30% or more on the 208.00 of interest. (62.00 a month)

So on paper your GTS will cost you 316.00 a month (maybe less). That's better than ANY loan and you do not have to put one dime down.

Invest your down payment.

 

[BYT U L8R]

Bottom line is either one you get you will love. If mechanical problems arise a warranty is nice. If you want emmidiate gratification with a long term piece of mind, get the '02.
I am glad I didn't invest a down payment instead of getting my Viper. I'm loving every minute!! It seems clear to me $315 a month vs $950 a month is no big deal to you. You just want the best bang for buck, though. Just do the '02!!

 

[SapphireGTS]

Don't buy a fancy car unless you can pay cash for it or can get a loan with interest less than the interest the monies are gaining which paying the loan minus the future interest value factor of the monies. If that makes any sense.

Cars are generally a horrible invenstment. I think leasing one is a bad idea. If you lease one dont put anything down. It will lower your payments but is throwing that $ away. Buy one if you can pay cash or get a good loan.

Hope my 2 cents was worth atleast 1.5 (plus interest)

 

[00prowler]

Hi Artioli Dodge in enfield ct has a final edition they want to blow out,sounds like you may be from ct!!! hope tis helps...AL...00PROWLER

 

[Toby]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by JusSumFastGi:
TobyT, the problem with a home e loan is most people do not have the will power (most say they do, few do in practice) to pay off the loan amount in a 3 - 5 year time. What tends to happen is they buy the car, make a few payments of (Old house payment) + (Car price / 36 months + interest) and then start paying the minimum loan amount of (Old house payment) + (Car price / 30 years + intrest) then, lets say ten years from now they sell the car and buy another one. They finance that car, but they are still paying on the Viper!

Not a good idea...

<HR></BLOCKQUOTE>


This idea is not a payoff theme...It keeps the value of the car equal with the loan amount so when you sell...you should have a zero balance.

 

[Fred(DrivingSchool)Kinder]

A lot of good advise.

I like the idea of using an equity loan (for a new or used car) and taking the interest deduction. With todays equity home loans at very low rates, lower than a Viper auto loan, and the equity loan deduction makes the net interest very low.

Woodhouse recently 6 Final editions and 6 2002 GTS. They also offer good pricing and service. With 12 2002 Vipers on the floor the deals will be great.