How to lose big money on cars without buying a Maserati

[dgmx5]

Shmee150 takes you through his car ownership story and the eyewatering sums of money he has lost doing it (bearing in mind it's his business, so it may be clickbait to make you watch his channel).

Takeaways from this video are 1. never buy new and 2. don't buy anything except a Suzuki, Ford, Toyota or a Maserati (the last may not be true).

 

[Felonious Crud]

Does he mention that had he only bought a Suzuki, Ford, Toyota or a Maserati then he wouldn't make enough money on YouTube to buy all the other cars he needs to buy to lose money to make videos to earn money to spend money to lose money to make videos about losing money (repeat until rich)?

 

[MarkMas]

Shmee150 takes you through his car ownership story and the eyewatering sums of money he has lost doing it (bearing in mind it's his business, so it may be clickbait to make you watch his channel).

Takeaways from this video are 1. never buy new and 2. don't buy anything except a Suzuki, Ford, Toyota or a Maserati (the last may not be true).

Did he just say Shmuseum???

 

[MarkMas]

Shmee150’s net worth: “baller” is not a strong enough word to describe it – DriveAndReview

 

[Felonious Crud]

Did he just say Shmuseum???

You mean you don't have a Marseum..?

 

[Corranga]

Shmee150’s net worth: “baller” is not a strong enough word to describe it – DriveAndReview

Not convinced by that. It's clear he's doing well, and he seems to enjoy it all in the videos I've watched (though not many as I find him a tad annoying), that article makes out that he owns the entire collection. I'd imagine, not least of all given the arrangement with the finance company mentioned there, that a lot of the cars are on PCP style deals with balloon payments. It makes little sense for him to outright own cars that he will only keep for a year or two before moving on to the next one, as is his business model.

I expect the increase in interest rates may mean a cut back in this sort of thing, though whether it'll be enough to be noticeable in content, I don't know.

 

[Felonious Crud]

Not convinced by that. It's clear he's doing well, and he seems to enjoy it all in the videos I've watched (though not many as I find him a tad annoying), that article makes out that he owns the entire collection. I'd imagine, not least of all given the arrangement with the finance company mentioned there, that a lot of the cars are on PCP style deals with balloon payments. It makes little sense for him to outright own cars that he will only keep for a year or two before moving on to the next one, as is his business model.

I expect the increase in interest rates may mean a cut back in this sort of thing, though whether it'll be enough to be noticeable in content, I don't know.

Yeah, agreed. For the financed cars the contribution to his wealth is likely zero due to it being owned by a finance company. They're just an asset used to create content to create revenue to finance cars (and a nice lifestyle, too, no doubt). Same comment about his house unless he owns it outright.

Somehow this discussion is drifting towards Alan Clark's comment about people who have to buy their own furniture.

 

[RodTungsten]

Yeah, agreed. For the financed cars the contribution to his wealth is likely zero due to it being owned by a finance company. They're just an asset used to create content to create revenue to finance cars (and a nice lifestyle, too, no doubt). Same comment about his house unless he owns it outright.

Somehow this discussion is drifting towards Alan Clark's comment about people who have to buy their own furniture.

… said of Michael Heseltine, I think. Clark’s writings superb and his cars too + long suffering wife.

 

[Nibby]

… said of Michael Heseltine, I think. Clark’s writings superb and his cars too + long suffering wife.

Clark was a a Nazi lover.

 

[Scaf]

I don’t really understand car finance - if these cars depreciate like they do, and we know they do……
someone has to pay.

- so is it that you finance the car and pay through the nose on a monthly basis to cover the depreciation that will ultimately have to be covered.

- it surely can’t be that the finance company take a bath on every car they finance ?

As they say, nothing is for nothing.

 

[Ewan]

I don’t really understand car finance - if these cars depreciate like they do, and we know they do……
someone has to pay.

- so is it that you finance the car and pay through the nose on a monthly basis to cover the depreciation that will ultimately have to be covered.

- it surely can’t be that the finance company take a bath on every car they finance ?

As they say, nothing is for nothing.

It depends. In theory, the depreciation is factored in to the deal by the finance company. But it’s all based on predictions.
In the case of my Audi E-Tron, the recent depreciation is greater than the finance company originally predicted - so they lose, not me. So by using Audi finance, rather than my own money, I’ve saved about £10k, as the Guaranteed Future Value of the car is £10k more than the part-ex figure I’ve just got for it when ordering our new E-Tron.

 

[Felonious Crud]

It depends. In theory, the depreciation is factored in to the deal by the finance company. But it’s all based on predictions.
In the case of my Audi E-Tron, the recent depreciation is greater than the finance company originally predicted - so they lose, not me. So by using Audi finance, rather than my own money, I’ve saved about £10k, as the Guaranteed Future Value of the car is £10k more than the part-ex figure I’ve just got for it when ordering our new E-Tron.

Yes. If, on the other hand, you used HP to finance a car then you'd be lumbered as you will have committed to buying the car at the end for the agreed balloon payment. You could choose to refinance to pay off the balloon, of course, and continue in that manner until you owned the car. Or you could sell it and pay off the finance, assuming the value of the car was at least as high as the balloon amount. I believe all Ferrari finance is HP. Ewan's approach / PCP (where you can hand the car back at the end and walk away) is safer.

 

[dgmx5]

Going back to Shmee, aren't some of his financed cars (the used examples) just straight unsecured finance with higher rates of interest (straight HP)? Or does nobody do that anymore?

This seems to give an idea of how he does it:

 

[Felonious Crud]

Going back to Shmee, aren't some of his financed cars (the used examples) just straight unsecured finance with higher rates of interest (straight HP)? Or does nobody do that anymore?

This seems to give an idea of how he does it:

I suspect he (or his company) is carrying some heavy future obligations for HP repayments. Which makes sense when he can easily cover the costs and 'losses' with his YooToob earnings. Obviously it makes less sense when a car is a heavily depreciating asset used to look good in central London rather than a heavily depreciating asset used to generate income.

 

[Gazcw]

Whenever I see his smug face on anything, I just have the extreme desire to punch him really hard. Prize ****.

 

[conaero]

I once sat and chatted to a very wealthy person who had a fleet of super cars and here is what he told me:

Car example OTR £100k

You pay or finance your £100k, keep it 3 years and you lose a 35-40%, more if you finance.

Same car, take the £100k, invest it, make 15% year on year, lease the car, pay the lease with the profits.

End of 3 years you have £100k plus a few percent interest to your fund on top.

Makes you think

 

[conaero]

Me…takes the £100k, invests it, leases the £100k car, lose half of my investment due to headstrong decisions, car costs the other half, end up with jack.

 

[CatmanV2]

Me…takes the £100k, invests it, leases the £100k car, lose half of my investment due to headstrong decisions, car costs the other half, end up with jack.

This would be me!
C

 

[Felonious Crud]

I once sat and chatted to a very wealthy person who had a fleet of super cars and here is what he told me:

Car example OTR £100k

You pay or finance your £100k, keep it 3 years and you lose a 35-40%, more if you finance.

Same car, take the £100k, invest it, make 15% year on year, lease the car, pay the lease with the profits.

End of 3 years you have £100k plus a few percent interest to your fund on top.

Makes you think

Exactly. Borrowing more money (over time) than the present value of the thing you're buying which will itself deteriorate in value during the period of the debt is insane.

But, in a game of Top Trumps, heart wins over head in all categories.

Besides, man maths calculators are fabulous.

 

[c4sman]

I always hear about these investments that deliver 15% annual returns reliably but I always turn up on the scene just as the bubble bursts. For this reason I buy cash and suck up the vicious depreciation on whatever car I’ve bought. Then, just after I sell, it becomes the most sought after classic on the planet and doubles my original purchase price. Go figure….