When Does Your Car Become Too Valuable to Drive?
When you drive off a dealer’s lot with a brand new car, depreciation immediately starts chipping away at your new car’s value. In three years, you’ll be lucky if the car is worth half what it cost new. Buy a classic car, especially one of a certain pedigree, and you’ll have the opposite “problem”. I’ve known at least a handful of car enthusiasts who have felt compelled to stop driving and in some cases sell their prized possessions, simply because the market values of the cars shot up too much. I’m talking about situations in which guys paid under a couple hundred thousand dollars for a nice Ferrari 250 SWB or a Lusso in good condition, only to wake up one day to realize they’re driving around in a car worth more than a house.
I personally haven’t experienced this first hand, but I suppose if my Alfa Romeo Sprint Speciale, for example, was to continue to appreciate in value the way it has since I bought it, I will eventually feel uneasy taking the car for a night out.
What about you? At what point would you stop driving your car because of appreciation?