Quote:
Originally Posted by Koa
There are two aspects that work against this logic:
- Time Value of Money
- Depreciation of high-performance assets
The first notes that any initial money spent, compounded with the less-than-face-value resell price at a future point down the road, crushes the aspect of planning to significantly re-coup money from the kit if one wanted to sell it down the road (given that the kit doesn't malfunction or otherwise become impossible to sell)
The second notes that high-performance assets depreciate at a faster rate than other assets, such as wheels and aero kits (given how they were maintained/treated/exposed to elements of course).
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That being said, yes the Cossy kit will have better re-sale value. That's a given. The argument here is that the initial outlay of their higher price works against other less expensive homebrew solutions that, while may re-sell for less, cost less to begin with and thus the time value of money and depreciation elements impact the investment less, resulting in a greater chance the cosworth kit indeed was not a smarter net disposal cash inflow. This is not speaking to the performance aspects of the kit versus other solutions. |
I am not exactly sure if/how the microeconomics jargon such as
time value of money or the
face value applies here but I think I understand your point
It shouldn't take a genius to guess an already expensive product will hold more value at the end but that doesn't necessarily mean it's a smarter buy (from a financial standpoint).. simple stupid example, say you ended up spending $10k on a so called "
premium" brand car part and at the end of the certain period you lost about %40 of its initial value, that's $4k of total loss which could be even more than the total cost of of another kit ..same can be said for German vs Japanese cars, in some cases some German cars can be cheaper than Japanese alternatives after 3-4 years of depreciation even if the initial value can be more than twice the Japanese car to begin with
if I were to make an investment, aftermarket parts would would be the last place to look at for sure, especially for late adapters of an already "
saturated market"
