Jon in CT Posted August 8, 2008 Share Posted August 8, 2008 Forbes published an article today at http://www.forbes.com/lifestyle/2008/08/08/high-cost-driving-forbeslife-cx_jm_0808cars.html titled 'Most Expensive Cars To Drive'. They supposedly look at ownership costs over 5 years, assuming 15,000 miles per year. Forbes relied on data from Vincentric, which I've never heard of before. The 2008 WRX makes the list because it is, according to Vincentric, expected to depreciate from a purchase price of $28,450 (I guess they're using a mid-level Premium Package WRX with 4AT) to a resale price of only $7,043 after 5 years/75,000 miles. I guess the 2009 WRX is puttin' a hurt on 2008 WRX owners in yet another way. A breakout of the 2008 WRX's expected 5-year expenses: http://www.forbes.com/2008/08/08/high-cost-driving-forbeslife-cx_jm_0808cars_slide_4.html?thisSpeed=90000000000 Link to comment Share on other sites More sharing options...
Guest heightsgtltd Posted August 8, 2008 Share Posted August 8, 2008 Wow.. A less than flattering post about Subaru from a Subaru employee? Link to comment Share on other sites More sharing options...
AKLGT Posted August 8, 2008 Share Posted August 8, 2008 I can understand that. the 08 WRX = 09 Impreza GT. OUCH! Wiggle wiggle wiggle wiggle wiggle yeah!!! Link to comment Share on other sites More sharing options...
mattejb Posted August 9, 2008 Share Posted August 9, 2008 Wow that is cheaper then the 2.5rs was after 5 years. I don't believe it. Link to comment Share on other sites More sharing options...
chenc544 Posted August 9, 2008 Share Posted August 9, 2008 2009 WRX & GT will be priced about the same as MY08 WRX, so that's certainly not going to help. http://www.edmunds.com/insideline/do...ticleId=130386 Link to comment Share on other sites More sharing options...
paycer Posted August 9, 2008 Share Posted August 9, 2008 Quote: Originally Posted by Chuck Jones http://forums.nasioc.com/forums/images/buttons/viewpost.gif But I am still skeptical. Now if only Jon [from CT] was here he could produce some internal document supporting or refuting edmunds' claim.http://forums.nasioc.com/forums/images/smilies/lol.gif I noticed this afternoon that he's now posting stuff at http://www.legacygt.com/forums/forumdisplay.php?f=58. I never used to visit there very often because it was slow moving (mostly just comments on old existing threads) and most of the new stuff actually originated here. None of his posts there deal with this topic, yet, but I guess I'll have to visit there more often than I have been. ^copied from NASIOC. Jon, you are raising the stock value of this site by not giving it up on the 'other' site. By the way, in case you haven't looked you're still on timeout over there. This thread over there would have caused self mutilations by the 08 owners. PS Are you really affiliated with Subaru (other than an enthusiast owner) somehow? Link to comment Share on other sites More sharing options...
Kaos22B Posted August 9, 2008 Share Posted August 9, 2008 No. 8: Subaru Impreza (Small Car) Total Cost: $72,705 MSRP: $28,450 Depreciation: $21,407 Fees And Taxes: $2,502 Fuel: $18,525 Insurance: $13,067 Maintenance And Repair: $4,416 Estimated Combined MPG: 22 WTH did they do with the math on these figures/totals... Link to comment Share on other sites More sharing options...
SLegacy99 Posted August 9, 2008 Share Posted August 9, 2008 Sweet Im gonna need a cheap car in 5 years. But I'd prolly get an '07. You know, one that doesn't look like it got kicked in the face by a horse. Link to comment Share on other sites More sharing options...
IwannaSportSedan Posted August 9, 2008 Share Posted August 9, 2008 WTH did they do with the math on these figures/totals... They added the depreciation to the total price, almost doubling that. (I find it hard to believe that I have to CORRECT Forbes Magazine.) Depreciation does not get figured like that. Depreciation is the converse of resale, resale gets subtracted at the end. You can't calculate depreciation as an expense the same way as fuel, maintenance, and insurance. Those things you actually pay cash for at various times. You never write a check for depreciation, depreciation is a market effect. Someone cuts YOU a check for resale value if you sell it at the end of the measured interval, so it gets subtracted from the total expenses. Depreciation is simply the difference between what you paid for the item on day one, and sold the item for on the last day. Depreciation is a measure of the value "consumed" during the time interval. The abstract cost of use, that is integral to the purchase price in the beginning. WHAT IT SHOULD READ: (also please note, that this seems to assume that the car is paid for with cash, and not financed. Financing costs would be another expense not listed here) No. 8: Subaru Impreza (Small Car) Expenses MSRP: $28,450 Fees And Taxes: $2,502 Fuel: $18,525 Insurance: $13,067 Maintenance And Repair: $4,416 Total Expense: $66,960 ----------------------- Resale Value: $7,043 ----------------------- Adjusted Expense: $59,917 Measures: Time interval: 5 years Total Depreciation: $21,407 (MSRP - Resale) Estimated Combined MPG: 22 (projected) Estimated Total Mileage: 75,000 (5 x 15,000) This can change significantly, by changing any one of the variables. Less or more mileage per year, More or less highway mileage, Imprezas, like Legacys, get better than 22mpg average with more highway use. Depreciation/resale is just a projection, and won't be certain until 2013, and resale could be higher. Insurance premiums may be higher or lower than projected. Fuel price could decrease, and already is for the moment. That projection could be inaccurate. Plus... Common budgeting practices are, that people's cars and associated expenses should cost approximately 25% of their take-home-pay per year, or less. More than 25% is risking other expenses, like food, shelter, savings, etc, but each person's budget has different conditions. if we take the total cost of the endeavor, $66,960, and devide it by 5. (to be safe, one shouldn't count on resale value in personal use equipment, until they have sold it and have cash in hand.) The annual cost of ownership is $13,392. If that is 25% of someone's income, the estimated annual income of that person would be $53,568. So, for a 5 year period, a hypothetical owner of a NEW 2008 WRX would spend $66,960, and over the same period of time, at a FLAT rate of income (most people get raises) would have earned $267,840. So, yes. $66,960 seems like a lot of money, but it fits proportionally into the income of someone projected to be able to afford to buy such a car. Perhaps there are other cars that cost less money on the back end, but I hardly think that a WRX is going to break the bank of someone who can afford it. And if you can't afford it, that is the wonderful thing about the market EFFECT of Depreciation. After a year or two, the resale value is lower, and a used car is that much more affordable. Not everyone is expected to be able to afford a NEW car. I didn't buy my Legacy new, either. 2.5 years used, and ~$9,000 less than new. That Price new minus resale is the definition of depreciation. Link to comment Share on other sites More sharing options...
fastwgn286 Posted August 10, 2008 Share Posted August 10, 2008 Sweet Im gonna need a cheap car in 5 years. But I'd prolly get an '07. You know, one that doesn't look like it got kicked in the face by a horse. hah, those might Appreciate due to teh ugliness of the 08.... Link to comment Share on other sites More sharing options...
godwhomismike Posted August 10, 2008 Share Posted August 10, 2008 I guess only those who leased an '08 WRX are ahead then? . Link to comment Share on other sites More sharing options...
Sponge Posted August 10, 2008 Share Posted August 10, 2008 agreed...sorry I wanna I just glaze over your posts now. lol My vB Gallery Link to comment Share on other sites More sharing options...
IwannaSportSedan Posted August 11, 2008 Share Posted August 11, 2008 It is your prerogatives, guys... It doesn't injure me at all. but is reading all that difficult? It isn't as if that is even a page long. it's barely two or three paragraphs. This is a written medium, I figured people came here to read, if not to write, as well. It is like complaining that magazines are just too much to read, when you are standing at a news stand, buying one. Link to comment Share on other sites More sharing options...
rexster Posted August 11, 2008 Share Posted August 11, 2008 they obviously pulled these numbers out of their asses. $13,000 for insurance for 5 years? my wrx was $1100/year when i sold it in 2005. And at $4/gallon I spend under $2,000/year on fuel for my GT. Not to mention that no one is dumb enough to pay anything close to sticker price. That article is pretty close to worthless... Link to comment Share on other sites More sharing options...
rjundi Posted August 11, 2008 Share Posted August 11, 2008 I seriously doubt its worth $7k after 5 years. I think $10k-$12k. Link to comment Share on other sites More sharing options...
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