Your Golf Car Is Worth More Than You Think (Reprint May ‘18)
You may have thought, at some point, that your golf car is expensive. Whether you were purchasing a new or used golf car, a pack of batteries, or just a few accessories, the price of a golf car and its upkeep can get pricey. After reading this, you will be comfortable with your golf car spend.
Originally reported in Bloomberg earlier this month, golf cars are an expensive delicacy afforded only by the mega rich in a small corner of Hong Kong. Would you believe that golf car prices are topping those of a Tesla or Porsche?
In a small residential community called Discovery Bay, outside of Hong Kong, golf cars are the transportation of choice. Like many golf car communities in the US, like Boca Grande and Sun City, private passenger cars are not permitted. The quaint two lane roads are heavily populated with bicycles, pedestrians, and golf cars. Private residences in Discovery Bay typically sell between $8M and $80M.
And here is why golf cars are so expensive- Discovery Bay has a population of 20,000, according to the 2016 census. The Transportation Department has capped golf car licenses at 500. In order to own and drive a golf car within Discovery Bay, you must have a golf car license. The short supply has skyrocketed the prices for golf cars and their accompanying licenses within the community. Since standard vehicles are not permitted, walking and biking are the only ways to get around if you aren’t one of the lucky few with a golf car license.
Recently, licensed golf cars have been selling for $255,000USD within Discovery Bay. The upscale neighborhood is home to airline pilots, bankers, lawyers, and high profile investors. The ability to own a golf car is not only convenient but is also a status symbol within the community. Residents take notice when nannies drive children around on golf cars or when they are parked at the community grocery store. Golf cars are coveted in Discovery Bay.
Not only are golf cars highly sought after, they have also become lucrative investments. The region has been faced with low interest rates and soaring property prices, so investors have taken to putting money into unconventional investments, like golf cars in Discovery Bay. Golf car licenses in Discovery Bay can only be owned by residents and can be freely bought and sold between owners. Golf car rentals can yield as much as $12,000 month, costing more than an apartment rental. These factors combined make for the perfect storm for investing in golf cars.
The next time you are hit with a golf car expense, just think of how expensive your golf car would be in Discovery Bay.
About the Author: The Owner of WHEELZ Custom Carts & Accessories, Julie Starr was one of the industry’s first online retailers of golf car products. Her eCommerce store, www.WHEELZLLC.com, has been serving golf car owners since 2008 and the store remains a popular online shopping experience for golf car owners who want to take their golf cars to the next level.
