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Eventually the high pricing car craze will calm down and things will go back to normal. With that said where do you think Hellcats will be in 3 years in relationship to MSRP?
Depreciation
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With materials both in short supply and prices rising daily, I think the bigger question is how much inflationary increases will we see on the sticker side of new cars. The chip shortage is putting the used cars in play, only as an alternative vs not being able to buy a new car without waiting 12-16 weeks. That as some point over the next 12 months will end. In the end, once everything settles down, new cars will have normal depreciation of a $15k hit year 1, and probably $5k a year after. Possibly stabilizing year 4.
If I had a crystal ball I'd use it to know what stocks would be in 3 years. Almost certainly cars, even Hellcats, will depreciate.
A general depreciation rate is the car loses 10% from what the dealer paid for the car the second it rolls off the lot. Then every year when the new models come out the car loses another 10%. This can steepen is the car proves to be a piece of you know what.
But it can flatten out if the car proves to be desirable to own as a used car.
The Hellcat is a pretty complex car. And even used it still has a pretty high service/maintenance premium associated with it. Barring something like COVID 3 years hence I expect Hellcats to experience at least an average rate of depreciation.
But I wouldn't bet on this either way. While the car probably depreciates it will still serve its purpose. I owned a car for over 16 years and 317K miles. Even as the car got older and accumulated more miles it ran fine and while its value continued to drop it still served me well. Yeah, the car developed some issues from the miles. But still far cheaper to fix these than replace the car. Until the last issue. When 2 dealers failed 3 times to find the problem that caused a CEL -- with the last dealer telling me it would require a blank check to get to the bottom of the problem which might require the engine be dropped maybe even torn down -- and because of this I could not register the car which meant I could not insure or drive the car I sold it back to a dealer who put the car up as is where is in a dealer to dealer auction.
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Yea and load up on gold stock..........to name one of many
It seems like all Hellcats have that initial depreciation of ~$70K down to ~$50K after a few years and then the value seems to sit there, mainly due to the existence of 392s and R/Ts. I feel like a used Hellcat in excellent condition when compared to a 392 in similar condition, is always going to be worth $8-$10K more
I dont think theyre going back to 'normal'. The platform is ending. That will keep them fairly high in the 3 year term you mentioned regardless of chips and viruses. My guess is $10-15k below msrp max.
Also mddreeves nailed it. With so many models below it as a cushion theyre never going to be actually cheap.
Also mddreeves nailed it. With so many models below it as a cushion theyre never going to be actually cheap.
As late as '78 you could still get a great deal on a hemi Mopar, '69 Z28, 396 Chevelles, various Mach 1's, Boss 302's, etc., even 427 Vettes. Though it was obvious to everyone that we were on a steep downhill slide, prices remained stable/low (at least from our perspective). People then looked at a classic super car for $4-6k, or they could buy a new "reliable" daily driver with warranty for the same price. Most people need the daily driver and looked at the super car as a unaffordable luxury and/or a poor investment. Though it is rare that history repeats so exactly, I have to think the same mass think applies now.
I think Slow is right on about supply, but I think the demand for the current gen HC will not be much different from the recent past (except for the backlog).
There will be a handful of us that will make sure we have what we want before the good stuff is gone. Anyone later will be able to buy used for somewhat reasonable market prices. Personally I do not plan on selling AMZN and going heavy on HC.
We are very lucky to have this opportunity to drive the last (and best) of the true muscle cars, possibly something the next generation will never understand or experience. Sad.
I think Slow is right on about supply, but I think the demand for the current gen HC will not be much different from the recent past (except for the backlog).
There will be a handful of us that will make sure we have what we want before the good stuff is gone. Anyone later will be able to buy used for somewhat reasonable market prices. Personally I do not plan on selling AMZN and going heavy on HC.
We are very lucky to have this opportunity to drive the last (and best) of the true muscle cars, possibly something the next generation will never understand or experience. Sad.
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How do you figure? a base 2011 corvette goes between 30 & 40k that's a base model
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You're right.....time for shots 🥃
No Tequila!!!! I gave it up too many times already!
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It's just like how many guns should a person own.............Just one more
Never happen. Too many models below the HC will be in that range. SRX, R/T, SP...
Lol, dude in 10 years these cars will probably be appreciating. If you haven’t read internal combustion engines are on there last leg. supercharged hellcats are going to be on the endangered species list. As long as Gasoline still exists at a reasonable price.. my guess is a hellcat with even 50k miles on it will be worth at least 45k in 10 years. I wouldn’t sell mine for less than 100k. In 20 or 30 years you may be very surprised where these hellcats prices will be
It will be a long time before a Hellcat will start going up in value. The big issue with Hellcat is that there's an absolute shitload of them. These aren't bad cars, but they aren't hard to find. This isn't like a Terminator Cobra, a Viper, some of the rarer BMW's, etc. It'll gain value eventually, but there's just way too many of them out there at the moment. The only one that for sure is retaining value is the Demon, for obvious reasons. Maybe the Durango Hellcat will retain value as well due to the limited production. However, the standard Charger/Challenger Hellcats to include the Redeyes? They aren't rare cars. Here in Colorado at least 9 people in my neighborhood alone have some form of Hellcat, and it feels like every other house has a 392 something. I see Hellcat's littered around where I work as well. Nothing wrong with that, these are amazing vehicles for the money, but they just don't have the limited production.
It's not like a 1 Series M that you have to wait for a listing to pop up to get, or even now the M2 CS (My manual M2 CS is already worth $30k more than I paid for it. Unlike my Hellcat.) In a decade, even once production is long over with, these things will still be all over auto trader. They'll retain some value over the 392's, same goes with the older generation CTS-V's. The only one to really gain in value is the limited one - The wagon.
By the time you hold onto one for 50 years you'll be dead, or they'll be banned from public roadways anyways. No one knows what the future will be, but the amount you'd waste on maintaining one for 50 years; That money is better spent on real estate, or something else. Beat the shit out of your Hellcat while you can, and it's cheap to do so.
It's not like a 1 Series M that you have to wait for a listing to pop up to get, or even now the M2 CS (My manual M2 CS is already worth $30k more than I paid for it. Unlike my Hellcat.) In a decade, even once production is long over with, these things will still be all over auto trader. They'll retain some value over the 392's, same goes with the older generation CTS-V's. The only one to really gain in value is the limited one - The wagon.
By the time you hold onto one for 50 years you'll be dead, or they'll be banned from public roadways anyways. No one knows what the future will be, but the amount you'd waste on maintaining one for 50 years; That money is better spent on real estate, or something else. Beat the shit out of your Hellcat while you can, and it's cheap to do so.
You can look at other examples of cars similar to the Hellcat that have held value pretty well. I don't buy any cars as investments. I bought my current Hellcat for 45k with low miles. I drive it all the time but only put a few thousand miles a year on it at most. I feel pretty confident I'll get most if not all of what I have in the Hellcat if/when I decide to sell it. I also own a 2013 Boss 302 same scenario low miles and it will hold close to the same value as what I bought it for in the medium term. I guess my point is if you buy these cars used for a decent price with low miles you can own them for really cheap.
If you think a Hellcat will hold value better than the current GT500 you're absolutely delusional. I don't even like the GT500, but that's just such an out of touch with reality statement. Again, Hellcats are ubiquitous. There are tons of them out there, and the used market is littered with them. If you want one new it's not hard to get one either. The production numbers on the GT500 are far lower, and the run won't be long either. I doubt it will last past MY22.
If you would have said C8 i'd agree with you. That car is WAY over-valued right now, and everyone knows the production numbers on those things will be immense after a few years of production. Shit, I already see them everywhere now. Anyone paying over MSRP for a C8 is lighting their cash on fire because they can't be patient. Anyone who got a C8 for MSRP would be wise to flip that thing fast while the values are so high, and the idiots buying them don't realize it's not a rare/limited car.
If you would have said C8 i'd agree with you. That car is WAY over-valued right now, and everyone knows the production numbers on those things will be immense after a few years of production. Shit, I already see them everywhere now. Anyone paying over MSRP for a C8 is lighting their cash on fire because they can't be patient. Anyone who got a C8 for MSRP would be wise to flip that thing fast while the values are so high, and the idiots buying them don't realize it's not a rare/limited car.
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