Gouging

Do you think people who buy and sell stocks are dishonest? If I buy a stock for $20 per share and sell it for $40 per share, should I feel guilty?

 

Yes

 

I sold cars for a Toyota dealer for about 3 months in the early 90s that did this all the time. You would get really weird combinations like scotch guard water proofing on vinyl seats. After awhile it became pretty obvious that they weren't actually adding the things they had listed. It was just a way to bump up the price.... worst job I ever had.

G

 

Not correct, you have depreciating assets and appreciating assets. Have you ever owned a car before that has appreciated within 2 years of being new? The point I have tried to make all along and it seems to have fell on deaf ears is go ahead and pay $5k over sticker for a Prius if you have to have it. In 2 years it is going to be a whole lot less than that when other hybrids come out and the auto technology changes. Some of you people might have that kind of money to waste, I am to STINGY for that myself.

I am going to sign out on this one. I have made the point and either you get it or you don't. I would have liked to have owned a Prius but I am not paying $30k for one now to find myself in 2 to 3 years wanting to sell it for $10k to $15k or whatever they bring. I am not prepared to take that kind of hit to own a car. It just doesn't make sense. I can get a Civic for $19k or a Hybrid Civic for $24K. The Honda dealers in my area are not marking up the Civic Hybrids and 2 of the dealers have them in stock.

 

I hate to continue this but assets are not inherently appreciating or depreciating. There is only assets...what makes them change in value is a number of factors (state of the economy, condition of asset etc) resulting in higher or lower demand relative to supply. Just because a car doesn't normally appreciate in the first couple of years doesn't mean that it can't. And when it does it isn't any different that when your house appreciates. Anyone bought a house in the last few years in California?

That being said I would tend to agree with your conclusion that the premium placed on the Prius will likely go away at some point. But then again it may not. If Iran gets uppity and shuts off a big chunk of the world supply of oil, the prius may go up even further.

Thanks,
G

 

Actually - older cars, muscle cars and collectable cars sell for much more than their original MSRP. Its just a matter of supply and demand. I suppose if there were thousands of vintage muscle cars in good condition, available - we would be buying them at CarMax. Since they are scarce their demand outweighs their supply and hence the crazy prices they are sold for (I've only seen those auto shows on TV). Prius is similar.

BTW - a car is not always a depreciating asset (although in most cases it is). Also - a house is not always an appreciating asset (sold ous for a significant loss after owning for 7 years).

I got my pre-owned Prius at fair price . I would not over-pay to buy it.

 

4 years ago, I sold our 11 month old Infiniti FX45 with 11K miles on it for $6K more than I paid for it new. Even after the sales tax hit, I still came out ahead.

Yet my house, which was appraised for $1.13 million in June of 2005 was just re-appraised at $400K.

I did better with the car. We live in an upside down world.