How to quantify “value”
12-31-2018, 01:53 PM
#1
Race Director
Thread Starter
How to quantify “value”
It seems like value always comes into every discussion on this forum, but value is usually related to the selling price. I think we should define value using a more holistic approach. It should be based on cost per mile. This works even if you drive an appreciating car less miles, or a depreciating car more miles. Ultimately, what was your cost to enjoy the car?
Here is my cost over nearly 3 years...
Paid: $165,000
Tax: $7,500
Registration: $4,200
Service: $3,000
Tires: $4,000
Windshield: $1,300
All in: $185,000 (exc. gas)
Estimated Resale: $125,000
Net cost: $60,000
Miles driven: 30,100
Cost per mile: $1.99
Even if you think I can only get $115,000 it is still pretty cheap. Compare that with many cars you see for sale. They have 5,000 miles, Yet they are still looking at a 20% depreciation hit. Using the same numbers above assume $175,000 all in and resale of $135,000 you have a net cost of $40,000 over 5,000 miles. That is $8.00 per mile. I am not sure what other enjoyment you get besides driving the car and taking it out. Having it in the garage and claiming bragging rights doesn’t really do much for me.
When you start looking at your cost per mile to own a car like this, you really can only come to one conclusion. Drive your car.
I think this is a better metric than simply talking about resale values, ADM, etc. And if we do look at it this way, it is really hard to beat a GT3 or RS, considering that you can drive them for less per mile than just about anything else out there. Heck, my 550i has cost far more to drive then my GT3.
So...what is your cost per mile on your current GT3 or RS?
Here is my cost over nearly 3 years...
Paid: $165,000
Tax: $7,500
Registration: $4,200
Service: $3,000
Tires: $4,000
Windshield: $1,300
All in: $185,000 (exc. gas)
Estimated Resale: $125,000
Net cost: $60,000
Miles driven: 30,100
Cost per mile: $1.99
Even if you think I can only get $115,000 it is still pretty cheap. Compare that with many cars you see for sale. They have 5,000 miles, Yet they are still looking at a 20% depreciation hit. Using the same numbers above assume $175,000 all in and resale of $135,000 you have a net cost of $40,000 over 5,000 miles. That is $8.00 per mile. I am not sure what other enjoyment you get besides driving the car and taking it out. Having it in the garage and claiming bragging rights doesn’t really do much for me.
When you start looking at your cost per mile to own a car like this, you really can only come to one conclusion. Drive your car.
I think this is a better metric than simply talking about resale values, ADM, etc. And if we do look at it this way, it is really hard to beat a GT3 or RS, considering that you can drive them for less per mile than just about anything else out there. Heck, my 550i has cost far more to drive then my GT3.
So...what is your cost per mile on your current GT3 or RS?
12-31-2018, 02:17 PM
#3
Drifting
Cost per mile is highly flawed. You don’t see any value other than ‘driving the car and taking it out’. The are other parts of the ownership expierience which others value. Also, if you are talking miles only, not all miles are equal. I just swapped my GT4. It only had 37xx miles but most of those were when I specifically taking the car out to enjoy. Motorcycles can be even more extreme. Essentially 100% of my road miles are solely for fun. 100% of my dirt hrs (we rode yesterday around Rampart Range) are for fun.
BTW, my GT4 CPM was 2.40... Other fun cars have been more or less dependant on new vs used, entry price, timing/market conditions, etc.
BTW, my GT4 CPM was 2.40... Other fun cars have been more or less dependant on new vs used, entry price, timing/market conditions, etc.
Last edited by BryanCO; 12-31-2018 at 02:35 PM.
12-31-2018, 02:34 PM
#4
Three Wheelin'
For this type of totally discretionary expenditure at >$150K+ value is thoroughly subjective in any financial advisor’s vocabulary.
12-31-2018, 06:11 PM
#5
Rennlist Member
Almost 24,000 miles on my GT4 in 2.5 years. Using Rob's logic my cost was $1.67/mile. Included in my miles were six Smokies GT trips and one mini Smokies GT. Cheap rental
12-31-2018, 06:33 PM
#6
Race Director
Thread Starter
12-31-2018, 09:55 PM
#7
I should get paid to drive mine at this point 
Albeit it's been in my garage since early December with 43km. Winter is here.
Robs approach is a decent one however I do agree you need to factor a little bit of what Bryan mentions. If I do the math on my Shelby it'll be a high cost per mile with only 3000km on the clock in year one. But I don't entirely look at it that way because I like the fact that when I want to drive an American V8, I have it waiting. To me there is some value in that.
Albeit it's been in my garage since early December with 43km. Winter is here.
Robs approach is a decent one however I do agree you need to factor a little bit of what Bryan mentions. If I do the math on my Shelby it'll be a high cost per mile with only 3000km on the clock in year one. But I don't entirely look at it that way because I like the fact that when I want to drive an American V8, I have it waiting. To me there is some value in that.
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01-01-2019, 11:15 AM
#9
Race Director
Thread Starter
Cost per mile is highly flawed. You don’t see any value other than ‘driving the car and taking it out’. The are other parts of the ownership expierience which others value. Also, if you are talking miles only, not all miles are equal. I just swapped my GT4. It only had 37xx miles but most of those were when I specifically taking the car out to enjoy. Motorcycles can be even more extreme. Essentially 100% of my road miles are solely for fun. 100% of my dirt hrs (we rode yesterday around Rampart Range) are for fun.
BTW, my GT4 CPM was 2.40... Other fun cars have been more or less dependant on new vs used, entry price, timing/market conditions, etc.
BTW, my GT4 CPM was 2.40... Other fun cars have been more or less dependant on new vs used, entry price, timing/market conditions, etc.
01-01-2019, 11:23 AM
#10
Race Director
Thread Starter
I should get paid to drive mine at this point
Albeit it's been in my garage since early December with 43km. Winter is here.
Robs approach is a decent one however I do agree you need to factor a little bit of what Bryan mentions. If I do the math on my Shelby it'll be a high cost per mile with only 3000km on the clock in year one. But I don't entirely look at it that way because I like the fact that when I want to drive an American V8, I have it waiting. To me there is some value in that.
Albeit it's been in my garage since early December with 43km. Winter is here.
Robs approach is a decent one however I do agree you need to factor a little bit of what Bryan mentions. If I do the math on my Shelby it'll be a high cost per mile with only 3000km on the clock in year one. But I don't entirely look at it that way because I like the fact that when I want to drive an American V8, I have it waiting. To me there is some value in that.
01-01-2019, 02:32 PM
#11
Drifting
Well The CPM VS CPTM quite a different number , your MPG drops to maybe 4 MPG , set of cups for 2k last 12 hours or 1200 miles at best ,
brake pads at 800+- good for 5 to 7 events accelerated engine service additional insurance and on and so on added cost over CPM for the road
But the monitory value to cleansing ones sole from successfully completing another thrilling session around the track as your left arm out and up as one pits in
the costs seems to loose significance with such an exhilarating experience for living life in the literal fast lane .
or some such winded verbiage
brake pads at 800+- good for 5 to 7 events accelerated engine service additional insurance and on and so on added cost over CPM for the road
But the monitory value to cleansing ones sole from successfully completing another thrilling session around the track as your left arm out and up as one pits in
the costs seems to loose significance with such an exhilarating experience for living life in the literal fast lane .
or some such winded verbiage
Last edited by R.Deacon; 01-01-2019 at 07:25 PM.
01-02-2019, 10:58 AM
#13
By the smile it puts on your face.
01-02-2019, 01:31 PM
#15
Instructor
to make this even more complicated (LOL), I would divide the miles into fun miles (backroads, track, canyons) and commute miles (grocery, gas, traffic)
fun miles get a x2 function, boring miles get a x0.5
i dont think it's worth the money if the gt3 is used for commuting 100 miles to work stuck in traffic and going over potholes
fun miles get a x2 function, boring miles get a x0.5
i dont think it's worth the money if the gt3 is used for commuting 100 miles to work stuck in traffic and going over potholes