Your observations and history are much appreciated. I agree the stock market is the best long term investment we have, and index funds made sense for several reasons. My point is that I could take the 30K, buy the market, and see a very sudden 50% loss. This having happened a couple of times in my lifetime. But you are 100% correct for the long term. All of your advice struck me as rock solid, but what else would we expect from Rockstar *grin*.
Thanks especially for the run down on the cars you've owned - exactly what I was hoping for. Wishful thinking...ah, yes... So unless phenomenally lucky like last year's Demon buyers who have seen a 50-60% increase in the value of their cars even an optioned Hellcat Redeye is unlikely to go up, much less retain, initial value. I pulled 26% depreciation out of my *** thinking it would be less depreciation than a lesser model, and it turned out to be the same dollar loss over that time period. What you're, and others, are saying is plan on 50% depreciation. Which makes the more expensive car a bigger loss, of course.
I also appreciate the basic car enthusiast advice given so far. In essence, if you can afford it and sleep at night buy what you want. And buying what I want is what my research, and your experiences that you guys care to relate, is the critical decision.
YouTube Video break time! (If you have time). I've been scouring the internet for Challenger videos, concentrating on 2019 Scat Packs and Hellcats. Look what I found today! I'm thinking this must be very new. If you can stand to watch two young "influencers" that my 62 year old eyeballs can only just tolerate (impending old fogey status acknowledged) actually crash a Go Mango Hellcat Redeye during their "review", check it out. If no time, start at 12:30 into the video. If a little time start at 9:00 when they first hit it and don't crash. If you're about my son's age you'll probably like the whole video. They are enthusiasts so I'm not knocking them too much. BUT, to Cuda340 and other posters who suggested my wife and I test drive a 2019 Scat Pack Wide Body and that the 485 HP would be more than enough fun on the street? Ummmm, that might be the best advice I've ever been given. But, dang, that Hellcat Red Eye is something else in addition to a potential death trap!
S3 Gets a 797 HP Hellcat Redeye... And Wrecks It.. - YouTube
Might have to cut and past that link.
Thanks again for posting. I'm all ears.
Yes, you could put $30K in the market -- a good index fund that is diversified -- and see the market "tank" and the money drop maybe 50%. The 2008 "crash" had me down quite a bit. The S+P 500 went from a 1282 on 8/29/2008 to a low of 683 on 3/6/2009.
But I didn't sell. But also for a while I didn't bother to check my mutual fund balances. But I kept adding money to my accounts, dollar cost averaging.
My time horizon was quite far out and in spite of the severity of the drop I believed it to be a rather short lived drop which I thought would pass by the time I needed the money. By 3/18/2011 the S&P 500 was nearly -- just a few dollars shy -- of where it was back on 8/29/2008. Nearly 3 years is not necessarily what people would call a short time but looking back it did go by rather quickly. And all the time I kept on investing some percentage of my paycheck every month. There were dividends too that were reinvested.
From there the S&P 500 went on to gain even more. From its low of 683 to a recent (2/1/2019) high of 2706 the market is up around 290%.
It remains to be seen how Demon prices will do in the future. It is too early I think -- except for those few who got in at maybe MSRP or not too much above and then flipped the car or cars for more than they paid after just a short time -- to call the Demon a good investment.
Really though for 99% of the cars (and this might include the Demon) they are not investments, but a depreciating asset. Often cars that do appreciate do so only after the original owner -- or the 1st several owners -- have sold the car on. There is an expense of keeping a car pristine for 10, 20, 30 years with the hope its increase in value will justify the time and expense. If (big if) the car appreciates in value it is still a hard way to make money.
The advice to consider instead of a HC or RE a new Scat Pack is good advice.
My Scat Pack was a nice car. I was probably (probably?...) "wrong" in trading it in after just 2 months but at the time I had convinced myself to keep it to have 3 cars: Scat Pack, JCW, and then a Hellcat; was not for me. That was then. Now I can tell you I wish I had kept the Scat Pack.
The 392 engine is a nice piece of work. Not Hellcat engine nice but well suited for its power output and intended use.
And since depreciation is the biggest expense of owning a car a depreciation curve that starts at $40K vs. one that starts at around $65K (or way more in the case of a RE) sees one losing less to depreciation. 'course, even if I kept the Scat Pack I would have still bought the HC so I would have had the depreciation of the HC's value too.
The Scat Pack is more an every day car than the Hellcat. Sure the HC can be driven every day -- I toy with the idea of selling my JCW and buying a 2nd Hellcat so I can drive one every day -- but really that ain't going to happen. The HC (and in this regard so too the Scat Pack as the two cars are the same size as near as I can tell) is a bit of a problem when it comes to navigating tight parking lots, parking. This is where the JCW comes in very handy and I try to use it for all errands that require I visit and park in a parking lot.
I don't recall gas mileage with my Scat Pack, but with my HC gas mileage sucks -- I get barely 15mpg (by way of comparison the JCW gets 30mpg+ being driven the same way as the HC) and while keeping the HC fuel tank full is not a hardship having to fill up the gas tank 2 maybe 3 times a week (as my only car the HC would see over 300 miles per week) really sucks. Might add here in CA I'm paying $3.499/gallon for Shell V-Power and crude prices appear headed up so gas prices will soon follow. Not too long ago I was paying closer to $4.00/gallon and $4.00/gallon gasoline is probably closer than one might believe. Sigh.
(I refuse to use the black key with the Hellcat.)
It is unfortunate the RE was wrecked. I watched the video a while back when someone first posted it but I don't know what exactly happened. (I suspect the driver developed a bad case of driving with his head up his ass.) Really a number of lesser cars are wrecked in many cases by people doing things in/with a car they had no business doing.
I think the RE (or the Hellcat) and similar cars just act to magnify what kind of driver one is. If one is stupid in a lesser car he's very much likely to behave the same way in a RE/HC. The difference is the more powerful cars magnify the consequences of being stupid.
The fact the HC came with 707hp and 650 ft lbs of torque didn't scare me. Just the opposite. It was part of the attraction. I have enough confidence in myself to know I'm not going to do something stupid in the HC. (My mantra when I first get in my HC (or my JCW for that matter) is "Don't be stupid.")
Thus my concern is not with my driving, but with the driving of every other driver. My time on the road is pretty much spent avoiding all the other drivers of other vehicles when they do something stupid.