Drive your pension... investment car
Discussion
I have a good pal who bought a certain red Italian classic that he has now had a decade or so and watched it steadily rise in value. His plan was that it would form part of his pension that he could get the enjoyment from for a few decades and then, as older years thwarted the ability to drive the thing, he could sell and see a nice addition to his funds.
It made me start thinking its not a bad little strategy - not as a guarantee or major part of your pension planning, but a fun addition on the side. Obviously running costs and maintenance will eat into any profit along the way, but these are incurred whether this is a part of a future investment consideration or just a consequence of your hobby. Inflation is of course another issue, but this applies across many tangible asset classes.
So this leads me to the question of what would you buy as something you would genuinely take pleasure in owning whilst also thinking you might see a tidy profit keeping it for a decade or greater? I have my own thoughts and it might influence my next move so wondering what the PH audience would propose. Over to you folks.
It made me start thinking its not a bad little strategy - not as a guarantee or major part of your pension planning, but a fun addition on the side. Obviously running costs and maintenance will eat into any profit along the way, but these are incurred whether this is a part of a future investment consideration or just a consequence of your hobby. Inflation is of course another issue, but this applies across many tangible asset classes.
So this leads me to the question of what would you buy as something you would genuinely take pleasure in owning whilst also thinking you might see a tidy profit keeping it for a decade or greater? I have my own thoughts and it might influence my next move so wondering what the PH audience would propose. Over to you folks.
Shnozz said:
So this leads me to the question of what would you buy as something you would genuinely take pleasure in owning whilst also thinking you might see a tidy profit keeping it for a decade or greater? I have my own thoughts and it might influence my next move so wondering what the PH audience would propose. Over to you folks.
Manual Gallardo.Fairly sensible running costs (relatively!), sonorous NA engine with 3 pedals, there's nothing like it coming in future.
I think there are better ways to gamble your future than putting money into an object that’ll almost certainly depreciate or at best return bugger after 20-30 years.
With electric cars the norm, anything vaguely interesting will already carry a premium, to be locked up somewhere as an investment.
Good example here: https://collectingcars.com/for-sale/2005-vauxhall-...
It’s 20 years old and worth roughly the same as it was back in 2005. Which with inflation, means it’s actually worth less. Still nice though.
With electric cars the norm, anything vaguely interesting will already carry a premium, to be locked up somewhere as an investment.
Good example here: https://collectingcars.com/for-sale/2005-vauxhall-...
It’s 20 years old and worth roughly the same as it was back in 2005. Which with inflation, means it’s actually worth less. Still nice though.
jeremyc said:
Shnozz said:
Krikkit said:
Manual Gallardo.
Fairly sensible running costs (relatively!), sonorous NA engine with 3 pedals, there's nothing like it coming in future.
Very interesting first post given my thinking! Fairly sensible running costs (relatively!), sonorous NA engine with 3 pedals, there's nothing like it coming in future.
You know it makes sense. 
And again, this does not constitute anything more than a minor proportion of a wider and more standard portfolio.
Or to look at it another way, this is simply a next toy car plan that, if I keep it a decade, would potentially coincide with me turning 57 - ergo retirement age. It got me thinking that something like a 570S would be a great car, but, as an example from below, a manual G would also be a great car, with the added bonus that potentially at draw down stage it would probs top up the pension pot more than a 570 in 10 years might..
Or to look at it another way, this is simply a next toy car plan that, if I keep it a decade, would potentially coincide with me turning 57 - ergo retirement age. It got me thinking that something like a 570S would be a great car, but, as an example from below, a manual G would also be a great car, with the added bonus that potentially at draw down stage it would probs top up the pension pot more than a 570 in 10 years might..
Puzzles said:
I don't think it is a bad idea, it could even be tax efficient, also you can sell the car whenever you like but the pension is locked in.
Indeed. Or keep it into retirement if I didn't need the top up, or certainly not initially but perhaps later as drawdown depleted, and assuming my 57 year old limbs were supple enough to drive the thing.Is retirement age 57 these days?
Buying a car as an investment really is a gamble now. With the demise of ICE, they could either become valuable collectors items or be completely worthless in years to come.
Probably a RWD sports car with a manual box and NA engine. But not an mx5 though, I have one of them and it will definitely not appreciate in value.
Buying a car as an investment really is a gamble now. With the demise of ICE, they could either become valuable collectors items or be completely worthless in years to come.
Probably a RWD sports car with a manual box and NA engine. But not an mx5 though, I have one of them and it will definitely not appreciate in value.
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