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Why Do Some People Prefer To Build Their Budget Super Car Instead Buying A Brand New Super Car?

769 words - 4 pages

The cars industry began to invent the revolutionary idea of super cars by mid 40’s. Mercedes and Aston Martin were one of the first manufactures to build these kind of cars. Nowadays, nearly all of the cars manufactures build super cars. Even Toyota with their latest Lexus LFA “F type” super car. All of this industry would not be a life today if there were no interest for these kind of products. Recently, more and more super cars fan began to build their own version due to the cost of well finished packaging and the enjoyment of the mechanic part of the process.

The cost of buying a brand new or used super car is very expensive to rich not to mention middle class people. For example, used Ferrari might cost a person well over 250k $ which is not affordable for most of our society. Nonetheless, these prices can not hold car enthusiasts from finding their way to own a super car. Thus, cars enthusiasts starts their project by using their own cars as a base. This would help the them to reduce the cost of buying new car then modify it. Then, they buy the parts needed by themselves from the after market which is also reduce costs. For instance, buying a new or used Turbo from well known brand is way more expensive to buy it from an after market brands. In addition, assembling super cars by its owners would get rid of labor cost. This is a key factor to reduce the total cost because sometimes labor cost exceeded the price of the broken part. For example, after one day of owning my used Lexus I found out that the water pump is leaking. After fixing the car, the part price was $ 323, but the labor cost was $ 400. This shows the high premium that I end up paying because of Asymmetric Information and Services principle specifically with the automobile maintenance. Also, the prices of well finished super cars is astonishingly high. Here we will not take the Bugatti Veryron as an example, but will take the McLaren P1 and my friend’s Evo from Mitsubishi. The p1’s price tage is $ 1.15 million producing 903 horse power while the Evo produce’s 850 horse power at the wheel with a project cost around $ 100 thousands. Maybe there are a huge...

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