Why have I become such a pussy?
Discussion
For the past two or three years I've been trying to talk myself into buying an F40. My arguments seem fairly sound: I have cash sitting in a bank account not doing much and values of F40s seem to be increasing so surely I could buy one, do around 2'000 km a year and if I needed to sell I should be able to get my money back plus perhaps some extra to cover my costs. All sound but I don't seem to have the balls to go ahead. Not sure why. Partly I find the idea of paying over £300k for a car (even if it seems to make sense financially) very difficult to deal with. Or just concern that an F40 is not a very liquid asset.
What is really odd is that I wasn't always this way. Twenty odd years ago when I was an audit junior I borrowed the equivalent of my annual salary from my father to buy a 3-year old 944 Turbo (don't think I was very popular with the partners in my office as I was then driving a better can than them!).
So why have I become such a coward? Is that another thing that comes with age, in addition to memory loss and hair growing on bits of your body that seemed to do quite well without for 45 years?!?
What is really odd is that I wasn't always this way. Twenty odd years ago when I was an audit junior I borrowed the equivalent of my annual salary from my father to buy a 3-year old 944 Turbo (don't think I was very popular with the partners in my office as I was then driving a better can than them!).
So why have I become such a coward? Is that another thing that comes with age, in addition to memory loss and hair growing on bits of your body that seemed to do quite well without for 45 years?!?
I know what you mean in one sense, I bought my 997 GT3 RS at the start of the winter and weather and work mean I only drive it early mornings at the weekend when I can plus the odd trip away.
Okay it cost a lot less than an F40 and will depreciate more but I still adopted the same thought process regarding money in the bank etc.
The F40 is my most desired car of any so in your position I would buy it, but I would think about it a bit, both before and after!
The top end of the market looks safe and their value don't look like going down any time soon although they have appreciated a serious amount, but look at the Enzo!
I would have bought one instead of some shares if I could go back in time!!!
Okay it cost a lot less than an F40 and will depreciate more but I still adopted the same thought process regarding money in the bank etc.
The F40 is my most desired car of any so in your position I would buy it, but I would think about it a bit, both before and after!
The top end of the market looks safe and their value don't look like going down any time soon although they have appreciated a serious amount, but look at the Enzo!
I would have bought one instead of some shares if I could go back in time!!!
I know this is a car forum and your right, based on supply and demand, the f40 probably wount lose value and the fun and satifaction of owning a poster car will definetly out weight most other options and even if you lose a few quid, it still would have been worth it!!
But say you have only the £300k to spend and you are looking to invest only that amount. My view is that your opportunity value or cost is closer to £600k, if you buy the F40.
Most Funding institutions will provide for "buy to let" residential investment or commercial investments up to say 50% debt, which is a safe amount to borrow. So you may be actually missing out on purchasing a residential or commercial property of say £600,000 which will give you prob a yield of circa 5% + apperication over the holding period.
But say you have only the £300k to spend and you are looking to invest only that amount. My view is that your opportunity value or cost is closer to £600k, if you buy the F40.
Most Funding institutions will provide for "buy to let" residential investment or commercial investments up to say 50% debt, which is a safe amount to borrow. So you may be actually missing out on purchasing a residential or commercial property of say £600,000 which will give you prob a yield of circa 5% + apperication over the holding period.
Dr G said:
It's better to regret something you have done than something you haven't done. Don't dive in expecting to make money when you sell and don't buy it if it means bread and beans.
Buy it because you've always wanted one and it'll make you grin like an idiot.
A humble dish of bread and beans and then going for a hoon in your F40 sounds pretty decent Buy it because you've always wanted one and it'll make you grin like an idiot.
Personally I would'nt spend this kind of money on an F40 , I think they are grossly over rated , nice and I'd love to have one but I wouldn't buy one for 300k . I'd value them at half the current market value , if I had a choice between Countach QV and F40 I'd take the Lambo everytime .
xto said:
I know this is a car forum and your right, based on supply and demand, the f40 probably wount lose value and the fun and satifaction of owning a poster car will definetly out weight most other options and even if you lose a few quid, it still would have been worth it!!
But say you have only the £300k to spend and you are looking to invest only that amount. My view is that your opportunity value or cost is closer to £600k, if you buy the F40.
Most Funding institutions will provide for "buy to let" residential investment or commercial investments up to say 50% debt, which is a safe amount to borrow. So you may be actually missing out on purchasing a residential or commercial property of say £600,000 which will give you prob a yield of circa 5% + apperication over the holding period.
Mmm. Not sure now is a good time for such investments. I thought about purchasing some buy-to-let properties in the UK about 5 years ago but was worried the market was overheating. I didn't get anything and with hindsight that was the right move as the Swiss Franc has got so much stronger against the pound I would have likely been looking at a big loss. With the strong Franc I could buy something now but I'm not sure about the UK house market. I thought there would be a big correction after the financial crisis but prices are being held stable by the very low interest rates. Could easily collapse if rates had to rise quickly (e.g. as fall out from the Euro going pop).But say you have only the £300k to spend and you are looking to invest only that amount. My view is that your opportunity value or cost is closer to £600k, if you buy the F40.
Most Funding institutions will provide for "buy to let" residential investment or commercial investments up to say 50% debt, which is a safe amount to borrow. So you may be actually missing out on purchasing a residential or commercial property of say £600,000 which will give you prob a yield of circa 5% + apperication over the holding period.
Have thought about buying something in Switzerland but we are in the middle of a housing bubble too. And equities are up and down like a kangaroo in the mating season.
At least with the F40 I would have something I really wanted, even if it did lose value.
Schnellmann said:
Mmmmm...I know...and the thought has occured to me more than once in the past couple of months that I should have increased my offer.
Do you actually want them or do you like the thought of owning one?I appreciate a rationalisation of a purchase but with such cars surely there should be some sort of overwhelming pull that goes beyond mere finances when you have such a lump sitting in the bank? Is there nothing else you hanker after? A dream car/project?
Schnellmann said:
Mmm. Not sure now is a good time for such investments. I thought about purchasing some buy-to-let properties in the UK about 5 years ago but was worried the market was overheating. I didn't get anything and with hindsight that was the right move as the Swiss Franc has got so much stronger against the pound I would have likely been looking at a big loss. With the strong Franc I could buy something now but I'm not sure about the UK house market. I thought there would be a big correction after the financial crisis but prices are being held stable by the very low interest rates. Could easily collapse if rates had to rise quickly (e.g. as fall out from the Euro going pop).
Have thought about buying something in Switzerland but we are in the middle of a housing bubble too. And equities are up and down like a kangaroo in the mating season.
At least with the F40 I would have something I really wanted, even if it did lose value.
Having recently got back from a few days in Zermatt, where a panini for lunch was a minimum of £15 I know exactly what you are talking about re. the strong CHF!Have thought about buying something in Switzerland but we are in the middle of a housing bubble too. And equities are up and down like a kangaroo in the mating season.
At least with the F40 I would have something I really wanted, even if it did lose value.
Re. UK property, personally I think if you buy in C. London you will be hardpressed to be affected by any housing crisis that may happen over here, I don't think it will hit properties at the level you could be looking at.
Obviously I'm just a randomer on an internet forum but I would have a good think about maybe actioning that plan now! Fingers crossed the CHF will weaken by next December and maybe I'll be able to afford the second cheapest thing on the menu for lunch instead
Edited to add: since it is a car forum. Might be unlikely but what is to say the F40 market won't crash, wiping off a third of the value of cars? There doesn't have to be much logic or reason behind a drop in value.
Edited by mackay45 on Tuesday 10th January 16:21
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