P14 Depreciation - McLaren Life
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post #1 of 68 Old 03-01-2017, 07:24 AM Thread Starter
 
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P14 Depreciation

I saw the 720S in Beverly Hills last week. I'm about to drop a deposit on one tomorrow, but I'm a little concerned about Mclaren's plan to bring 15 new cars to market in the next 5 years. It sounds like a recipe for depreciation. I got burned as an early adopter of the 12C. I love Mclaren, but don't want to see my investment tank 100k in the first year or two.

Is there anyone else who is seriously considering buying one worried? If so, or not, why?
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post #2 of 68 Old 03-01-2017, 08:04 AM
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Originally Posted by DocW View Post
I saw the 720S in Beverly Hills last week. I'm about to drop a deposit on one tomorrow, but I'm a little concerned about Mclaren's plan to bring 15 new cars to market in the next 5 years. It sounds like a recipe for depreciation. I got burned as an early adopter of the 12C. I love Mclaren, but don't want to see my investment tank 100k in the first year or two.

Is there anyone else who is seriously considering buying one worried? If so, or not, why?
In my judgement this car will depreciate but short term demand may soften the pain for 18 months but it is a mainstream supercar and not a limited edition. I would be surprised if it bombed like the 12C which was hit by recessionary demand imop.

I have one on order and have subconsciously (ie not discussed with wife) written a small chunk off the invoice.

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post #3 of 68 Old 03-01-2017, 08:32 AM
 
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Originally Posted by DocW View Post
I saw the 720S in Beverly Hills last week. I'm about to drop a deposit on one tomorrow, but I'm a little concerned about Mclaren's plan to bring 15 new cars to market in the next 5 years. It sounds like a recipe for depreciation. I got burned as an early adopter of the 12C. I love Mclaren, but don't want to see my investment tank 100k in the first year or two.

Is there anyone else who is seriously considering buying one worried? If so, or not, why?
Yes, your concern is justified. That is why I've never bought a television set, a cell phone, another supercar, never married (divorce can be very expensive as we all know), no children (college education costs are a bummer) In short, I am now very rich. If I were you, I'd spend all that 720S money on a well pre-planned funeral and a wild checking out party for all your friends. After all, you're not going to need it much after that.
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post #4 of 68 Old 03-01-2017, 09:40 AM
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Given that the large majority of those people who have benefited from an advance viewing of the new car have come away with resoundingly positive opinions of it, perhaps this is the turning point when we should shift the discussion towards "P14 Appreciation"? These are clearly set to be the must-have stars of the supercar market and the overwhelming demand is surely going to drive prices in an upward direction.

Several others have broken down the Track22 plan with solid speculation on what those models will be and made it fairly clear that none are the 720S successor. We aren't looking at another 12C/650S situation brewing on the horizon.

>8^)
ER
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post #5 of 68 Old 03-01-2017, 09:45 AM
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Key point are obviously the production numbers McLaren is going for. If they create a supply vs. demand situation with long waitlists and some scarcity of the cars available, value will be more solid. They know all that.
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post #6 of 68 Old 03-01-2017, 09:59 AM
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Key point are obviously the production numbers McLaren is going for. If they create a supply vs. demand situation with long waitlists and some scarcity of the cars available, value will be more solid. They know all that.
The situation with the 12c will never happen again..they are on solid ground with this car and have a broader range to rely on now....as you say they will not and cannot make that mistake again..they know this time round ,last time they had No choice ..
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post #7 of 68 Old 03-01-2017, 10:08 AM
 
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Quote:
Originally Posted by DocW View Post
I saw the 720S in Beverly Hills last week. I'm about to drop a deposit on one tomorrow, but I'm a little concerned about Mclaren's plan to bring 15 new cars to market in the next 5 years. It sounds like a recipe for depreciation. I got burned as an early adopter of the 12C. I love Mclaren, but don't want to see my investment tank 100k in the first year or two.

Is there anyone else who is seriously considering buying one worried? If so, or not, why?
One of the first things you got wrong is that you stated this purchase is an investment...

This is a machine to be enjoyed, not to be confused with an investment.
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post #8 of 68 Old 03-01-2017, 11:03 AM
 
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One of the first things you got wrong is that you stated this purchase is an investment...

This is a machine to be enjoyed, not to be confused with an investment.




Have to 1000% agree with this. IMHO 99% of sports cars such as these are really 'toys' to be enjoyed. If you are concerned about a new car depreciating, might not be the right purchase, as rest assured, 99% will. I would seriously financially plan on it depreciating 25-30% like most cars. If you are lucky, it won't. If depreciation is a concern, which for most people (including me) it is, buying the lastest and greatest is probably not the best strategy. There is always a premium for that.
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post #9 of 68 Old 03-01-2017, 11:45 AM
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One of the first things you got wrong is that you stated this purchase is an investment...

This is a machine to be enjoyed, not to be confused with an investment.
Mic drop!!!
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post #10 of 68 Old 03-01-2017, 01:45 PM
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Quote:
Originally Posted by DocW View Post
I saw the 720S in Beverly Hills last week. I'm about to drop a deposit on one tomorrow, but I'm a little concerned about Mclaren's plan to bring 15 new cars to market in the next 5 years. It sounds like a recipe for depreciation. I got burned as an early adopter of the 12C. I love Mclaren, but don't want to see my investment tank 100k in the first year or two.

Is there anyone else who is seriously considering buying one worried? If so, or not, why?
There are three kinds of buyers:

1) I don't care about depreciation bring it on as I want to be the first kid on the block

2) I'll wait a little bit and try and get a discount or a 'punched' used 6-12 months after release

3) I'll wait until these things tank $100k and pick one up (that was in jest--not trolling before anyone starts crying)


Where do you fall? Personally I'd wait, but your pocketbook is your pocketbook. The rest as to resale, etc, etc is pure speculation all on fronts--but unless you're buying a La Ferrari at sticker, nothing is an 'investment' in the car world.
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post #11 of 68 Old 03-01-2017, 01:46 PM
 
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15 cars is actually normal. It's not 15 new cars, it's 15 models and variations and trims. If you look at Lamborghini, the've released just as many over the same amount of time.
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post #12 of 68 Old 03-01-2017, 02:29 PM
 
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Originally Posted by ZZZOOM! View Post
Yes, your concern is justified. That is why I've never bought a television set, a cell phone, another supercar, never married (divorce can be very expensive as we all know), no children (college education costs are a bummer) In short, I am now very rich. If I were you, I'd spend all that 720S money on a well pre-planned funeral and a wild checking out party for all your friends. After all, you're not going to need it much after that.
lol sounds like a sad life.
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post #13 of 68 Old 03-01-2017, 02:57 PM
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Originally Posted by Peloton25 View Post
Given that the large majority of those people who have benefited from an advance viewing of the new car have come away with resoundingly positive opinions of it, perhaps this is the turning point when we should shift the discussion towards "P14 Appreciation"? These are clearly set to be the must-have stars of the supercar market and the overwhelming demand is surely going to drive prices in an upward direction.

Several others have broken down the Track22 plan with solid speculation on what those models will be and made it fairly clear that none are the 720S successor. We aren't looking at another 12C/650S situation brewing on the horizon.

>8^)
ER
I do hope your prediction comes to fruition. However when the 12C was launched it was on much longer product cycle than actually occurred. The need to recreate demand spawned the revisions with the front end ensuring it refreshed interest.

The 720, at least in Europe, has garnered most criticism around its Peugeot front end....... I hope it's a grower style wise

roundincircles

Started with Scalextric

720S Azores

Smart 4/2 , BMW 5 Touring X, 18 BMW GS 1200.

12C Coupe , Spider and 650S Spider Now History but not forgotten.

Various 911's from 1991, TVR, Beetle 1600S, Morris Minor. Renault 4. Triang 3 Wheeler.
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post #14 of 68 Old 03-01-2017, 03:01 PM
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Originally Posted by Declan View Post
Key point are obviously the production numbers McLaren is going for. If they create a supply vs. demand situation with long waitlists and some scarcity of the cars available, value will be more solid. They know all that.
It's not rocket science either so they must have known that long ago and it clearly didn't stop anything...twice...
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post #15 of 68 Old 03-01-2017, 03:58 PM
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Originally Posted by Peloton25 View Post
Given that the large majority of those people who have benefited from an advance viewing of the new car have come away with resoundingly positive opinions of it, perhaps this is the turning point when we should shift the discussion towards "P14 Appreciation"? These are clearly set to be the must-have stars of the supercar market and the overwhelming demand is surely going to drive prices in an upward direction.

Several others have broken down the Track22 plan with solid speculation on what those models will be and made it fairly clear that none are the 720S successor. We aren't looking at another 12C/650S situation brewing on the horizon.

>8^)
ER
I do hope your prediction comes to fruition. However when the 12C was launched it was on much longer product cycle than actually occurred. The need to recreate demand spawned the revisions with the front end ensuring it refreshed interest.

The 720, at least in Europe, has garnered most criticism around its Peugeot front end....... I hope it's a grower style wise

roundincircles

Started with Scalextric

720S Azores

Smart 4/2 , BMW 5 Touring X, 18 BMW GS 1200.

12C Coupe , Spider and 650S Spider Now History but not forgotten.

Various 911's from 1991, TVR, Beetle 1600S, Morris Minor. Renault 4. Triang 3 Wheeler.
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