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017 | Why $100K Cars Lose Value Fast + The Wild 300HP 3-Cylinder That’s Breaking the Rules

017 | Why $100K Cars Lose Value Fast + The Wild 300HP 3-Cylinder That’s Breaking the Rules

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About this episode

Exploring the rapid depreciation of luxury cars, this episode reveals why they can lose up to 30% of their value in the first year. The hosts discuss the impact of technology changes on resale values, particularly in high-end brands like BMW and Mercedes. Additionally, they introduce a surprising three-cylinder engine that delivers 300 horsepower, challenging conventional performance norms. The conversation also touches on leasing versus buying for rideshare drivers, emphasizing the financial implications of each choice.

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Technical Too Afraid to Ask
Term

MSRP

"...some cars in some particular automakers, like mark up their vehicle way beyond MSRP. They'll have the regular price and they'll have like a dealer price..."

MSRP is the price that the car maker suggests you should pay for a new car. However, dealerships may charge more than this price based on demand.

Term

dealer markup

"...but you go to dealership, it was like 50 grand more. Some ridiculous overpricing those things..."

Dealer markup is when a car dealership charges more than the price suggested by the car maker. This often happens when a car is very popular or in short supply.

Car

Ford Mustang

"...I remember when the Mustangs were coming out with their, I think GT 350 came out and I looked at those..."

The Ford Mustang GT350 is a special version of the Mustang sports car that is designed for high performance and racing. It's known for being fast and powerful.

Term

hold their value

"...actually are probably, you know, good values even now that I would say probably might hold their value just because of the interest level that people have in those types of cars. So I won't go full,..."

When a car 'holds its value,' it means that it doesn't lose a lot of money over time when you try to sell it. Some cars are more popular and stay valuable longer than others.

Car

Land Rover Range Rover

"...all. What depends on the brand, I guess, but like Range Rover, for example, those fall, some Mercedes, some BMW..."

The Range Rover is a fancy SUV that can handle rough terrains but also feels very comfortable inside. People talk about it because it's a status symbol and great for both city driving and off-road adventures.

Brand

Mercedes

"...some Mercedes, some BMWs, they seem to fall fast,..."

Mercedes is a well-known brand that makes luxury cars. They are famous for their quality and high-tech features.

Brand

BMW

"...some Mercedes, some BMWs, they seem to fall fast,..."

BMW is a brand that makes luxury cars known for being fun to drive. They focus on performance and high-quality engineering.

Concept

depreciation curve

"I feel like tend to, to hit that depreciation curve a lot harder, mainly just because the technology is always changing."

The depreciation curve is how quickly a car loses its value after you buy it. Luxury cars tend to lose value faster than regular cars because new models come out with better features all the time.

Term

lease

"Well, do you ever watch like the leases? Like a lot of those cars are, like a lot of luxury cars are lease models for the most part..."

Leasing a car means you pay to drive it for a few years, but you don't actually own it. When the lease ends, you just give the car back to the dealership.

Term

luxury cars

"...a lot of those cars are, like a lot of luxury cars are lease models for the most part..."

Luxury cars are expensive and fancy vehicles that have a lot of extra features and comforts. They are designed to provide a better driving experience than regular cars.

Term

certified pre-owned

"they call them like certified pre-owned or what they call them..."

Certified pre-owned cars are used cars that have been checked and approved by the manufacturer, so they are often in good shape and come with a warranty.

Term

extended warranty

"...they'll sell you the extended warranty, but then that extended warranty will say things like, oh, dude, that's not covered..."

An extended warranty is like extra insurance for your car that helps pay for repairs after the regular warranty runs out. However, it might not cover everything, so it's important to read the fine print.

Term

luxury car depreciation

"...luxury cars and that higher initial costs realm can depreciate up to between 20 and 30% in their first year alone..."

Luxury car depreciation is how much value a fancy car loses over time. For example, a new luxury car can lose a lot of its price—up to 30%—in just the first year.

Term

leasing

"...leasing is a great option. I love that you brought that up because that gets talked about a lot..."

Leasing means you pay to use a car for a few years instead of buying it. When the lease is up, you give the car back and can get a new one.

Car

Ford F150

"...when I bought my first F 150, I went from a smaller Nissan truck, like two door, a little extra, like the little suicide doors in the back to a four-door crew cab F 150 because I had a kid..."

The Ford F-150 is a large truck that many people use for work and family activities. It's popular because it can carry a lot of stuff and is good for driving in different conditions.

Term

multi-purpose car

"...it was kind of like a multi-purpose car. I guess kind of like with you and your N, how it's kind of like a multi-purpose car."

A multi-purpose car is a vehicle that can do many things, like carry your family and also haul stuff, making it useful for different situations.

Car

Nissan Z

"...like say you were to buy just like the Z, the new Z or whatever or something like that, a new Corvette or whatever."

The Nissan Z is a sporty car known for being fun to drive, but it's not really designed for carrying lots of people or cargo.

Car

Chevrolet Corvette

"...or something like that, a new Corvette or whatever. That's just your fun car. Right. Right. 100%."

The Chevrolet Corvette is a fast and sporty car that's popular among car enthusiasts, but it's mainly built for fun driving rather than family use.

Concept

GR Sport cars

"...I think Toyota's offering of some of their like, their GR cars, their, their GR Sport cars. Wait a second. Wait a second."

GR Sport cars are special versions of Toyota cars that are made for better performance and a more exciting driving experience.

Car

Toyota Supra

"...just kind of in this segment, particularly the GR Supra. I mean, people really, really love that car. I a..."

The Supra is a sporty car that many people love because it's fast and fun to drive. The new version, called the GR Supra, is especially popular among car enthusiasts.

Car

M series cars

"Cause it's like the old thing with the, what was the, what was the other car that they did that with? It was a, well, I'm always going to infinities because that's my main reference point, but the, the M series cars, they had a V eight version and they had a, in a V six version, the one that I have and they're the same car, like everything, same body, right?"

The M series cars from BMW are special high-performance versions of their regular models. They have more powerful engines and are designed for better handling and speed, making them exciting to drive.

Car

Ford Ranger

"...and even trucks too, like the F 150 and like Ford Ranger all went to like the bubbly look, you know, I thi..."

The Ranger is a smaller truck that can carry things and drive off-road. It's popular because it's easier to handle than bigger trucks but still strong enough for many tasks.

Term

wing

"...the big like a wing on the back that kind of went up just right above the roof line..."

A 'wing' is a part on some cars that helps them stay stable when going fast. It looks cool and can help the car handle better.

Car

Nissan 300 ZX

"...ys love the Z too. Don't get me wrong. I love the 300 ZX and all that kind of stuff. But, but you're sayin..."

The 300 ZX is a classic sports car that many people admire for its speed and cool looks. It was popular in the '90s and is still loved by car fans today.

Car

Toyota Gr86

"...t do they call that to GR? So now it's called the GR86. I would love to see if like in the, in like, you..."

The GR 86 is a small sports car that's really fun to drive. It's designed to be light and quick, which makes it exciting for people who love driving.

Car

Subaru BRZ

"Now it's called the GR86. I would love to see if like in the, in like, you know, any car's history, if like that car has like been the one with the most name changes..."

The Subaru BRZ is a small sports car that focuses on being fun to drive. It's made in partnership with Toyota and is similar to the GR86.

Car

Scion Frs

"...t even counting the fact that Subaru had like the FRS, but the BRZ and then they had the Scion version,..."

The FR-S is a small sports car that's really fun to drive. It's designed to be light and quick, making it a favorite for people who love driving.

Car

Scion TC

"I still wanted a Scion TC like the front of the TC, if you squint and you don't know what you're looking at..."

The Scion TC was a small, sporty car that young people liked because it looked good and could be customized. It was affordable and fun to drive.

Car

Nissan GT-R

"...if you're going to put a GTR badge like right in the middle of the grille there, do a GTR. You want to, you want to make people think you got a GTR."

The Nissan GT-R is a fast sports car that many people admire for its speed and racing capabilities. It's designed to perform well on the track and is popular among car enthusiasts.

Car

Toyota GR

"...the GRs are just priced in an area where, you know, you again, you own it for two or three years..."

The Toyota GR is a line of sporty cars made by Toyota that are built for better performance and handling. They are popular among car enthusiasts for their fun driving experience.

Car

Toyota GR Corolla

"...og or what? Because we didn't throw in the mix to GR Corolla because that's awesome. Three bangers they got. D..."

The GR Corolla is a sportier version of the regular Corolla, made for people who love to drive fast. It's designed to be fun and exciting on the road.

Car

Honda Civic

"...s pretty big. Yeah. Because I know that the Honda civics were like 1.6, like the, the old civics, they wer..."

The Civic is a small car that's very popular because it's dependable and gets good gas mileage. Many people choose it for everyday driving because it's easy to use and maintain.

Car

Mitsubishi Lancer

"...ow, would that compete directly with the, the old Lancer or with, or with the Subaru STI or they even coul..."

The Lancer is a small car that used to be popular for being sporty and fun to drive. The special version called the Evolution was especially loved by car fans.

Car

Volkswagen Id Buzz

"...ll me this candidly, do you think that the new VW ID buzz is cool looking? Like, I've always thought the, t..."

The ID. Buzz is a new electric van that looks like the old VW buses. It's exciting because it's eco-friendly and has a lot of room for people and cargo.

Car

Volkswagen Bus

"... cool looking? Like, I've always thought the, the bus in generally speaking, like the classic ones obvi..."

The VW Bus is a classic van that many people love because of its cool shape and lots of space inside. It's famous for being used by families and travelers in the past.

Car

Nissan Murano

"...t VQ engine version for the truck and for the new Murano and the, all the different cars had, have had a V..."

The Murano is a comfortable SUV that looks nice and has plenty of space inside. It's a good option for families who want a stylish car that can carry everyone.

Car

General Motors Ev1

"...course, you know, they look great. But as for the EV1, like I said, you know, I don't personally see th..."

The EV1 was an early electric car made by General Motors in the '90s. It was important because it helped start the conversation about electric vehicles, even though it didn't last long.

Car

Infiniti QX80

"...t for? So the big daddy of them all, the, the big QX80 slash like the Nissan version, the Armada SUV is,..."

The QX80 is a big, fancy SUV that has lots of room inside and is great for families. It also has a strong engine, which helps it drive well on different types of roads.

Car

Nissan Armada

"..., the big QX80 slash like the Nissan version, the Armada SUV is, is one of the car that I talk about all t..."

The Armada is a big SUV that's great for families and can tow heavy stuff. It has a lot of space inside, making it comfortable for long trips.

Car

Ford Raptor

"...n your towing capacity. And did you know that the Ford Raptor, even though it has more horsepower than my truck..."

The Raptor Ranger is a tough version of the Ranger truck that can handle rough off-road driving. It's built for adventure and has a powerful engine to help it go anywhere.

Car

Hyundai Elantra

"...lly, they'll get out there in there. They're like Elantra ends. Like I know guys did like do it actually, l..."

The Elantra is a small car that offers good value for money. It's reliable and has many features, making it a great choice for people who want a practical car.

Car

Ford Explorer

"...you do. My ex-wife was towing a lot with her Ford Explorer and her business. And we got a hitch for it. And ..."

The Explorer is a family-sized SUV that has lots of room for passengers and cargo. It's great for road trips and can tow things like trailers, which makes it useful for many families.

Car

Shelby GT500

"Supercharging is rare. Yeah. Like it's rare to kind of see a supercharged car nowadays. Like there are a few Mustang GT 500 or whatever it is and things like that. But usually that's like for performance."

The GT500 is a super-fast version of the Mustang that has a really powerful engine. It's famous for being a muscle car and is loved by those who enjoy speed.

Car

Honda Accord

"..., if you were to max out this car, like the Honda Accord or whatever it is, and then you max it all out an..."

The Accord is a comfortable car that's good for families and everyday driving. It's known for lasting a long time and not needing too many repairs.

Car

Mazda Miata

"...ting a mini damn for the family, kind of with the Miata or something, you know, or whatever. Know what yo..."

Mazda makes cars that are fun to drive and look good. They are known for being sporty and having a nice design, which attracts many drivers.

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