Investment Cars
Discussion
I mentioned in another thread that the 2nd hand performance car market is probably due to crash at some point in the not too distant future.
Values have been increasing at a rate that looks very much bubble like and it will only take an increase of interest rates before the demand will drop and the bubble will pop.
(Personal opinion of course).
I am guessing there will be an amount of concerned 'collectors/investors' sooner or later who have ploughed a lot of money in to inflated car prices trying to sell to people who will not see the same value in them as what they were bought for.
(Not only interest rate driven, but also simple affordability in a similar manner to that of house prices - if value are too high then the lower rung of the ladder can not make the leap up in order to continue the demand. But as we know the government won't step in to protect car investors/collectors as it does with home owners and property prices).
Some other replies on the thread mentioned it was more likely just a 'correction' was on its way. Of course this could be right, but when the bubble is anywhere near its 'correction' or its 'pop', I don't think its a good time to be buying cars for 'investment'.
Values have been increasing at a rate that looks very much bubble like and it will only take an increase of interest rates before the demand will drop and the bubble will pop.
(Personal opinion of course).
I am guessing there will be an amount of concerned 'collectors/investors' sooner or later who have ploughed a lot of money in to inflated car prices trying to sell to people who will not see the same value in them as what they were bought for.
(Not only interest rate driven, but also simple affordability in a similar manner to that of house prices - if value are too high then the lower rung of the ladder can not make the leap up in order to continue the demand. But as we know the government won't step in to protect car investors/collectors as it does with home owners and property prices).
Some other replies on the thread mentioned it was more likely just a 'correction' was on its way. Of course this could be right, but when the bubble is anywhere near its 'correction' or its 'pop', I don't think its a good time to be buying cars for 'investment'.
Ian_C said:
isosonic said:
Ferrari F355 – the best sounding Ferrari for me, and still relatively cheap
Are you taking the piss?! When was the last time you looked at what they are going for.....They bottomed out at £35-50 grand a while back, maybe £55 at most............ currently two on Pistonheads for £169,950
Love the inflation appreciation argument - just price how many Big Macs a 355 has cost and chart year by year - that is appreciation of late
Generationally less than 75pc of the next gen are even likely to hold licences so that leads me to like only the high end / unique as well as for running cost amortisation
Lastly because of CAFE limits and the world responding to pollution/carbon and the fact 25 percent of emissions are from transport the world is conspiring to create joyless cars - making anything in the middle dead
Cars become mainly for pleasure and rural environments which is actually a great thing for enthusiasts as should lower congestion. The rest is utilitarian - by 2018 a 5 star ncap has to have auto braking. China to my knowledge is like Japan in that you cannot register high emitting vehicles so they should be largely out of the market ex museums
Just my 2 cents - I have Alfa 8C spider and bmw z3 m coupe that I drive - occasionally
This is one divisive topic but I like the idea it keeps cool cars on the road as nothing better than 3.0 Capri
Generationally less than 75pc of the next gen are even likely to hold licences so that leads me to like only the high end / unique as well as for running cost amortisation
Lastly because of CAFE limits and the world responding to pollution/carbon and the fact 25 percent of emissions are from transport the world is conspiring to create joyless cars - making anything in the middle dead
Cars become mainly for pleasure and rural environments which is actually a great thing for enthusiasts as should lower congestion. The rest is utilitarian - by 2018 a 5 star ncap has to have auto braking. China to my knowledge is like Japan in that you cannot register high emitting vehicles so they should be largely out of the market ex museums
Just my 2 cents - I have Alfa 8C spider and bmw z3 m coupe that I drive - occasionally
This is one divisive topic but I like the idea it keeps cool cars on the road as nothing better than 3.0 Capri
The XJS has already started going up at a pretty rapid rate, particularly for good examples. They do now seem to be dragging the XK8 up with them, not much yet but I bought mine just over 4 years ago and there none available on PH or Autotrader at a lower price now (admittedly with lower mileage than mine now has on it but I use it a lot).
The other two cars I have are a Fiat Coupe for which the values are still low but heading up, particularly for the LE and Plus models and a recently purchased Lancia Fulvia Zagato because I noticed they were much cheaper than I expected and are a car I have always wanted. Hopefully it will prove a chance to have, and use, a car without losing money - real luck will be a gain in value!
The other two cars I have are a Fiat Coupe for which the values are still low but heading up, particularly for the LE and Plus models and a recently purchased Lancia Fulvia Zagato because I noticed they were much cheaper than I expected and are a car I have always wanted. Hopefully it will prove a chance to have, and use, a car without losing money - real luck will be a gain in value!
Shotgun Jon said:
Well, my leased m135i has gone so instead of sinking another £8k over two years into a car I don't own I've just bought a straight pre match 2006 (cheap tax bracket) MKV Golf R32 on the basis that they are starting to creep up in value.
Have I been wise?
Of course you have Have I been wise?
I think it's great that cars appreciate, there is loads of choice for everyone. My best scores an RHD 72' 911S £50,000 - £380,000 in three years. CSL, £26,000 to about £60,000. A 92' 535i manual bought for £1,000, sold for £7,500 on Ebay. It justifies preservation and restoration for future generations.
Buy what you like at any price, if it holds its value great. Rarity, provenance, cultural icon, rave reviews, nostalgia.
There are always people that moan, that missed their chance, as the supply of good original cars dwindle, used, abused, crashed, thrashed, scrapping scheme crushed. Buy stuff on the cusp. There are hundreds of future classics that can be snapped up for buttons and enjoyed sparingly.
If anyone has a nice Citroen BX 16V I am interested?
Buy what you like at any price, if it holds its value great. Rarity, provenance, cultural icon, rave reviews, nostalgia.
There are always people that moan, that missed their chance, as the supply of good original cars dwindle, used, abused, crashed, thrashed, scrapping scheme crushed. Buy stuff on the cusp. There are hundreds of future classics that can be snapped up for buttons and enjoyed sparingly.
If anyone has a nice Citroen BX 16V I am interested?
I have to agree with the XK8 / XKR. Seem to be holding values well and I can't see why they'd start dropping. A big engine, beautiful tourer, what's not to like.
This seems like a damn good investment...
http://www.jtinsight.com/JTIRA/JTIRA.aspx#!/simple...
This seems like a damn good investment...
http://www.jtinsight.com/JTIRA/JTIRA.aspx#!/simple...
Fast Bug said:
Legacywr said:
4-5K as it's a Ford?
Only if it's got a couple of grand in the glovebox!As ever with these zero mileage cars, they only have appeal as a museum piece or showroom ornament. It would need a fair bit of recommissioning if you wanted to use it on the road, and it loses its value as a zero mileage "timewarp" car as soon as you put a few thousand miles on it.
Guvernator said:
breezer42 said:
The only way to have a high chance of making money is market manipulation. I know a buy who's bought dozens of 550/575s and I believe he's single-handedly created the new pricing level on those things.
I can't prove it, but I believe someone started doing the same with TVR S series'. I was looking for one and there were consistently loads available. Then 6 months later, none at all. Like, none stayed up for more than a matter of hours.
Sadly there's no rule against this like there is in securities markets.
Similar thing happened with the M3 CSL and a certain few dealers snapping up almost every low mileage CSL going then whacking then on the forecourt for double the price. Lead to a sharp increase in CSL prices almost overnight. People go to jail for that kind of stuff in regulated markets. I can't prove it, but I believe someone started doing the same with TVR S series'. I was looking for one and there were consistently loads available. Then 6 months later, none at all. Like, none stayed up for more than a matter of hours.
Sadly there's no rule against this like there is in securities markets.
Frankly, there's a lot of cars out there now that are just not worth buying IMO (as a car enthusiast). I've owned two F's that are now worth £300k plus up from the £40k that I bought them at. There's just no way I'd spend £300k on one of those cars. But that's because I see them as a car to drive, not an extension of my bank balance! Unfortunately investors & speculators are ruining it for the rest of us who actually want to appreciate and drive the things. I honestly can't believe the price of many ordinary Porsches as an example of where we are today.
I've got a couple of cars that have gone up a lot in value myself, and all it does is make me worry about driving and fixing them. Parts seem to be going stratospheric too as the manufacturers are cashing in as well. I'd love to see a market readjustment personally!
Gassing Station | General Gassing | Top of Page | What's New | My Stuff