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So we are staring at 70k for a new Z06. One of the drawbacks of my profession (financial planning and economics) is that I tend to crunch numbers when I am going to make a financial decision.
In economics they talk about "opportunity cost", which basically means the 70k I spend on a new Z could be spent elsewhere or say invested.

I'm 45, investing 70k for 20 years at 8% interest, would grow to $326k. (at age 65)
For a 35 yr old, 70k invested for 30 years at 8% interest would grow to $704K.
For you 25 yr olds, 70k invested for 40 years at 8% interest would grow to $1,520,718. (you young guys should give your allocations to us old farts) :p

Now 70k sounds like a bargan right. :rofl:

This is all fairly simplistic and does not adjust the future values for inflation or taxes. You could probably do better than 8%. Historically the stock market has returned 10.2%and long term gov bonds 5.5% (from 1925 to 2002) so 8% would represent a 50/50 stock bond mix.

This excercise explains why most economists are dull, boring,
and don't have much fun.

But it dosen't explain why I will ignore the economics and buy a new Z06 anyway. :D
 

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scotts said:
You could probably do better than 8%. Historically the stock market has returned 10.2%and long term gov bonds 5.5% (from 1925 to 2002) so 8% would represent a 50/50 stock bond mix.
I understand your point and agree younger people should be doing other things with their earnings than buying a new Corvette. But the returns you quoted are no longer valid, haven't been for a while and won't be again for a long, long time. Sad but true.
 

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Finance major here too....

Someone told me something years ago that I have used many times in business. It goes something like: "never allow emotions to become involved with financial decisions".

It really makes alot of sense if you think about. That ugly divorce where one is going to get the other one back but the attorney is the only one that wins........financial decision based on emotion.

Well to hell with that saying, I could'nt help myself from not buying it. Maybe it's because I was at the factory a couple of weeks ago and saw two of them go out on the test track and two in the assembly process. They were frickin gorgeous.

It's the baddest Corvette EVER built. I have 1969 fully restored 427 red/blck convertible with a muncie M22 4spd Rock-Crusher that dynoed at 475 horses. It's not even close to my 405hp '04 Z06. The old technology looses alot more horses where it meets the road and forget about handling. All this talk about the Viper, does it have traction control yet???

Moma who was moderately against the purchase of the new Z, was at the local dealership who had a c6 coupe on the floor and she loved it. It's passion....that's what makes the world go around.

Remember when (I'm old now) you would stay up all night trying to get any kind of action from some girl (or guy for the ladies).

All I gotta say is........God Bless America! What a Country!!....
 

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I am a finance professor. I also think about the future value of the money that I spend on discretionary items. When it comes time to retire, and you don't have enough to retire comfortably, you will regret money foolishly spent on toys like a Z06.

In my own case I have budgeted $80 K for the new Z06 in in the Fall of 2007 in my financial plan, which does not interfer with my retirement plan, so I can buy it. If it did, then I wouldn't buy one. I never act impulsively when money is on the line. I guess the morale of the story is to have a long range financial plan so that you can buy Z06's comfortably.
 

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$66K is going to be a lot harder for most people to swallow than $50K. There's a very big difference. $50K is right on the cusp on what a lot of people can afford - or are willing to part with for a depreciating asset without risking their future retirement and the kids' educations. $66K is over the cusp for a lot of C5 Z06 buyers. GM will only sell half as many at that price, no matter how much better it is.

Plus, every one of us must realize that we still love our current Z06s. They didn't get any slower or less desirable just because there's something else out there. Do I want a new one? Hell yeah. Will I get it? Remains to be seen...
 

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Can't take the money with you and you never know when that may be. Lease the Z for a few years, give it back and you have lost minimal $$ and still have the experience to remember for life.
 

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Lease a new Z06 for over $1000.00 per month payments & it will cost you a total of $36,000 or more over the 3 years.

That is your capital LOSS.

Too rich for my pocket!!!

Without GMS available, it is not feasible at MSRP.
 

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Phaster said:
I can buy 2 used C5 Z06's for 70K or one C6Z06. I can wait for a while longer.

I picked up my Vette new in Jan. 03 and I won't do that again...I have 70K+ in this car as it is now so, I agree...I'll wait a couple of years and pick up a nice used one to tear up. :blush:
 

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If I thought about this in totally practical terms, I would cancel my order and get off this forum. And if I was practical I would just be satisfied with my S-10 pickup and her with her BMW 540.

No debts, an Air Force retirement check, enough money in the bank to quit work; but, I put aside $90k for this new car (glad I will save some of that $90k) out of the enjoyment factor, not in practical terms.

And if I was really practical I would take that $90k and invest in one or two classic cars that would appreciate over time - BUT, I am not practical. Makes it worse when my wife of 38 years is saying - you want it, get it!
 

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You got it right...No one buys a car for logical reasons..

Emotions hit and you own a new car.

Now if you have a C5 Z06 and are enjoying...

Bide your time cause eventually you'll want to or need to replace it.

At that time....logic goes out the window..

And the party begins all over again...

Thats the kicker...(not logical thought process or financial common sense.)

JMO
 

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For those who can stroke a check for the new Z, then knock yourselves out! For mere stiffs like me, its pre-owned for sure! A mass-produced Chevy, no matter how awesome, is still a mass-produced Chevy. It is a massively rapidly depreciating asset. To wit, the values of a 2 or 3 year old C5Z. These cars are approaching 50% residuals! That, unfortunately for a premium sports car, is real shitty! The C6Z will be even worse - the higher the MSRP (I'm in high-line auto sales), the deeper the 24-month initial depreciation! Unless it is something like a ZL-1, it's physics.

It will still be one heck of a bad ass ride!! I can't wait to have one someday. But I'm still in love with my C5Z for now. :mug:
 

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No matter what car you buy a 50% depreciation over 3 years is pretty normal.

46% for 2 years..

54% for 3 years is about what you pay on a lease so why would purchasing and then selling in those time frames be much more than 10% than the above stated figures..

Porsche......Vipers all range pretty close ..

The corvette would should be the same...

Buying preowned is a great way to not take the hit on heavy depreciation yet thats true of any automobile...

Just my two cents...

I'm diggin my present ride and when its time I'll get the newest best vette out....

The C6 Z06 new or lightly preowned depending on where my heads at.
 

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constren said:
Finance major here too....

Someone told me something years ago that I have used many times in business. It goes something like: "never allow emotions to become involved with financial decisions".

It really makes alot of sense if you think about. That ugly divorce where one is going to get the other one back but the attorney is the only one that wins........financial decision based on emotion.

Well to hell with that saying, I could'nt help myself from not buying it. Maybe it's because I was at the factory a couple of weeks ago and saw two of them go out on the test track and two in the assembly process. They were frickin gorgeous.

It's the baddest Corvette EVER built. I have 1969 fully restored 427 red/blck convertible with a muncie M22 4spd Rock-Crusher that dynoed at 475 horses. It's not even close to my 405hp '04 Z06. The old technology looses alot more horses where it meets the road and forget about handling. All this talk about the Viper, does it have traction control yet???

Moma who was moderately against the purchase of the new Z, was at the local dealership who had a c6 coupe on the floor and she loved it. It's passion....that's what makes the world go around.

Remember when (I'm old now) you would stay up all night trying to get any kind of action from some girl (or guy for the ladies).

All I gotta say is........God Bless America! What a Country!!....
Agree with the technology part. The older corvettes are fun but by no means inthe same league with todays cars handling and performance. Resale, that's decades away so I hope everyone saves all their cars docs for it's value down the road. :usa:
 

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355Spider said:
Can't take the money with you and you never know when that may be.
Very good advice.

It's obviously a good idea to save some money along the way; however, being "over saved" is something people should try to avoid.

I can't tell you how many guys I've known who shorted themselves and their family of some of the things that can make life fun (i.e. "toys", vacations, etc), only to end up checking out of life early.

My advice...be reasonable about saving, and budget enough of your income to enjoy some things in life.
 

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355Spider said:
Can't take the money with you and you never know when that may be.
Dock said:
Very good advice.

It's obviously a good idea to save some money along the way; however, being "over saved" is something people should try to avoid.
Now you have me totally perplexed. If you can't take your money with you when you die, and you might die at any time why would you bother to save?

This "over saved" concept is new to me. Right now in the US, there is negative savings going on overall. How do you know when you are "over saved"?

I teach a course called "employee benefits and retirement planning". I tell my students that the penalty for not saving enough is that you will have to reduce your standard of living when you retire (99% of all Americans reduce their standard of living during retirement), or you will have to work longer, perhaps never being able to retire.

The penalty for saving too much, well there is no penalty. You can retire early, or do what I am doing now.

I am sure that I'm guilty of "over savings". I admit it, I have saved, "invested" at a much higher rate than most Americans over all of my life, starting as a kid. I never felt like I was deprived from getting anything that I really wanted. What is the result of this over savings? I just got back from a five-week trip to Europe with my 22 year old son. I paid cash for everything. I paid cash for my 2001 Z06. I told my 18 year old daughter that I would take her to Spain and North Africa for a month or so next summer - once again paying cash. I will pay cash for my 2007 or 8 Z06.

I guess the real penalty for not living for the moment, and being an "over saver", is that you have the flexibility to do what you want to do whenever you want to do. That is the type of penalty that I have lived with. If I'd drop dead tomorrow, I guess my family will have the same kind of flexibility.
 
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