Investment Cars

[GarageQueen]

For me its really sad this notion even exists!! How did our leisure/pleasure activity of buying/driving the cars we love get infiltrated by the 'commodities market'. Bol**cks to it all!

[Fast Bug]

EnglishTony said:

Sell your investment, buy another. Can you get the replacement as the price you paid for yours 10 years ago?

That's inflation, not profit.

Eh? £38k allowing for inflation is now £50k. So if you sold at £50k in theory you haven't made any money. If you sold at £100k you've doubled your money. That's profit.

One of us has missed the point, and I'm pretty sure that's you fella?

[xRIEx]

Fast Bug said:

EnglishTony said:

Sell your investment, buy another. Can you get the replacement as the price you paid for yours 10 years ago?

That's inflation, not profit.

Eh? £38k allowing for inflation is now £50k. So if you sold at £50k in theory you haven't made any money. If you sold at £100k you've doubled your money. That's profit.

One of us has missed the point, and I'm pretty sure that's you fella?

You're right - I think EnglishTony is confusing inflation with appreciation.

[EnglishTony]

Appreciation is inflation.

It's the same with house prices whether the world's estate agents wish to admit it or not.

[JockySteer]

A quick Google - HTH

1) Appreciation in the value of money is different from appreciation in the value of commodity or service. When value of commodity appreciates, value of money depreciates. If value of money appreciates, value of commodity depreciates.
2) During inflation, value of commodity goes up and value of money comes down.
Regarding inflation and appreciation,
Present value of wealth + appreciation = future value of wealth
Present value of wealth + inflation = future value of wealth
Present value of wealth + time = future value of wealth
Present value of wealth + interest = future value of wealth
Mathematically, from above, appreciation = inflation.
During inflation, value of commodity increases and value money or currency of that country decreases or depreciates

[xRIEx]

EnglishTony said:

Appreciation is inflation.

It's the same with house prices whether the world's estate agents wish to admit it or not.

[beko1987]

A rust free Ford KA + 20 years keeping it rust free = ££?

[pilchard8]

The mk4 Supra I purchased 18 months ago is rising steadily in price, but with the money ive spent on it to enjoy it its probably about break even. Still, depreciation proof motoring is all good in my eyes.

[Drivebyabuser]

Kierkegaard said:

Mercedes SL R107

Gullwings are £1m+ ...Increasing
Pagodas £100k+ ...Increasing

Natural order dictates good original R107s will be increasing too..

Next will be R129s

My R129 has gone up in value in 18 months. Have to be late models with good spec and preferably an SL500. SL600's are starting to go a bit mad already

[Flewis]

Just bought a Z32 300ZX twin turbo manual car. Not necessarily an investment car, bought it because I've always wanted one, but I can't see myself losing any money on it.

[Wide arse]

Sold mine a couple of months back and doubled my money on it after 8 years of ownership. Prices do seem to have stabilised though as higher priced cars are not shifting.

Tycho said:

Already happened. I wish I'd bought one at £10k a few years ago as they seem to start at £30K now.

[Trophy-GTA]

Clio 182 Trophy's are going up slowly but surely.

[fluffekins]

Much of this is IMO fed by the dealers who have the most to gain.

Having owned a car that has "appreciated" by approx 80% in 18 months, I can confirm that it does alter the enjoyment of it, things creep into the consciousness such as the amount of miles and potential value in the future etc. Would rather not have to think about it and just enjoy it for what it is.

It's similar to buying a house, values are relative, trading up becomes harder and running costs increase.

Still, not a bad problem to have until the bubble inevitably bursts.

[NilsP]

I think Alfa GT junior and alfa spiders will appreciate some more. They've already started though.
Porsche 928 (especially GT and GTS)
850 csi
RS2
Z3M coupe
996 turbo
e34 M5
NA MX5

[MesserXJR]

I'd say a 996 turbo is a sure bet for a money earner in the future even though they have spiked a little

I happen to be in this club at the moment .... In that the supposed value of my car has gone north in what I think is a silly way .... But to be honest when they are purchased it's usually with the heart

I've never looked at a car and thought "yer tuck this away for 10 15 years and it'll earn me a few quid " .... It is always " oh my god I wanna give that a good hiding !!!!

[sgq89]

Porsche 996 C4S Convertible. Bought mine 11 months ago for £22k and just sold it 5,000 miles later for £26k! They are still going up and they look fantastic.

[Fast Bug]

EnglishTony said:

Appreciation is inflation.

It's the same with house prices whether the world's estate agents wish to admit it or not.

My house has appreciated in value faster than the rate of inflation?

[405dogvan]

Someone has to say this - almost NO cars are good financial investments.

Maybe if you exploit the market (buy a tatty/poorly priced car and sell-on) but OWNING a car will always cost you money (insurance, storage, maintenance, fighting-off depreciation, finding an actual buyer - all cost money)

Obviously some cars will soften the blow by holding value/being easy to sell (the latter being FAR more important than the former) but a lot of this idea of cars which are 'good investments' is based on hot air/myths/careful man-maths!!

Edited by 405dogvan on Monday 16th May 13:35

[Jay_87]

I should of bought the Mk1 Focus RS I was offered about 5 years ago!

Hopefully Mk5 GTI Edition 30 prices will go through the roof.....

[405dogvan]

Jay_87 said:

I should of bought the Mk1 Focus RS I was offered about 5 years ago!

Should HAVE - oh, hang-on, potential RS owner - carry on guvnor...

Let's take this example tho - how much do you THINK you'd have made - and then break down what you'd likely have spent on it (assuming you used it as intended)