Eye popping F430 prices

[red_slr]

The clever people are the ones who acquire a car, don't use it, don't service it, don't even wash it. Then 50 years later some 'merkin turns up and "yyeeehaaa BARN FIND!". Worth a zillion bucks. Something like that anyway..

[markst]

having sold my manual in June I have to admit prices do seem very silly.

however, my 4 Ferraris I have owned have cost less to run in total than the depreciation I suffered on an SLK in 1 year.....

[Slarti650]

Nano2nd said:

hows that different from any other investment? almost all investments have costs associated with them, ultimately as long as theres "profit" its a sound investment whether thats a car or property or stocks or whatever, yes cars can be bad investments, but again that applies to investing in general.

Lol. Buy a house and you rent it to cover your costs. Pretty easy example really

[Nano2nd]

Slarti650 said:

Lol. Buy a house and you rent it to cover your costs. Pretty easy example really

not sure what your point is?

[Nano2nd]

going back to the OPs post, the second car is sold!

[Slarti650]

Nano2nd said:

not sure what your point is?

Not all investments cost. A house can be cost neutral or even profitable if you rent it. You can do that with a car so you're swallowing alot of maintenance cost. You could buy a Rolls and do wedding runs with it I guess.

[Jules360]

Slarti650 said:

Nano2nd said:

not sure what your point is?

Not all investments cost. A house can be cost neutral or even profitable if you rent it. You can do that with a car so you're swallowing alot of maintenance cost. You could buy a Rolls and do wedding runs with it I guess.

But you can't drive a house in the meantime. And if it's purely investment you have to look at the capital appreciation minus running costs. No house would have doubled in price over the past 30 months. My Strad has.

[sealtt]

A bad investment that works out well is not a good investment. Risk weighted these cars are terrible investments and are pure cost for the holding period, so if the immense capital gain does not materialise there is nothing to mitigate that. It just needs to be assessed rationally and with the outcomes risk weighted.

More simply: Playing the lottery is not a good investment just because some people win £millions off of a £1 bet.

[Nano2nd]

Slarti650 said:

Not all investments cost. A house can be cost neutral or even profitable if you rent it. You can do that with a car so you're swallowing alot of maintenance cost. You could buy a Rolls and do wedding runs with it I guess.

i still don't get what your saying... you mean not all investments make money? or not all investments have a cost associated with them? i agree if its the first one, but i was referring to the second one in my previous post.... i can't think of any investment that doesn't have a cost of some sort - taking your house example, repairs & maintenance, interest payments, buildings insurance, rental voids, theres plenty more no doubt.

[Jules360]

sealtt said:

A bad investment that works out well is not a good investment. Risk weighted these cars are terrible investments and are pure cost for the holding period, so if the immense capital gain does not materialise there is nothing to mitigate that. It just needs to be assessed rationally and with the outcomes risk weighted.

More simply: Playing the lottery is not a good investment just because some people win £millions off of a £1 bet.

How would you calculate the risk weighting on a car ?

[sealtt]

Nano2nd said:

i still don't get what your saying... you mean not all investments make money? or not all investments have a cost associated with them? i agree if its the first one, but i was referring to the second one in my previous post.... i can't think of any investment that doesn't have a cost of some sort - taking your house example, repairs & maintenance, interest payments, buildings insurance, rental voids, theres plenty more no doubt.

NET cost vs NET income

[sealtt]

Jules360 said:

How would you calculate the risk weighting on a car ?

It's a judgement call, take a view on probability of various residual values vs probability of total costs over x years holding period. As I stated before, it's rnpv negative based on my expectations.

Randomly assigned numbers below to show the premise:

E.G

Purchase price:
100% x -£199k

Costs:
30% x -£45k
60% x -£60k
10% x -£80k

Sale:
30% x £150k
50% x £200k
20% x £350k

[JayK12]

sealtt said:

A bad investment that works out well is not a good investment. Risk weighted these cars are terrible investments and are pure cost for the holding period, so if the immense capital gain does not materialise there is nothing to mitigate that. It just needs to be assessed rationally and with the outcomes risk weighted.

More simply: Playing the lottery is not a good investment just because some people win £millions off of a £1 bet.

Bang on!