Drive your pension... investment car
Discussion
Quattr04. said:
You can guarantee any limited edition 911 will go up in value, GT3 touring, S/T ducktail etc
I'd go far enough to say any clean manual 996 Coupe would be up there too. Not all beloved when they were new (Headlights and going watercooled), so wasn't the most popular at the time. But now is getting more and more iconic. Very unique too in that Porsche tried something new with their design with the headlight, had an uproar from fans and then reverted back to OG design.Will a standard 996 be enough to retire on? Probably not, but should certainly be enough to boost personal pension.
Pica-Pica said:
Puzzles said:
Pica-Pica said:
Best to invest in a pension and get the tax relief.
You most likely won’t have to pay CGT on a car. IMO it does make sense to diversify a little.
paddy1970 said:
The issue with using a car as an investment is that any significant mileage will reduce its value. True investment-grade cars are those with exceptionally low mileage.
Yes, completely agree. On a smaller level, I wouldn't be too worried in the same way my pal uses his Testarossa for little drives out and local car shows etc.Doing something like a LM or European trip, however, would perhaps start to become something more contemplated rather than just enjoyed without a second thought. That said, in a depreciating car adding miles is still going to harm value; at least adding miles in an otherwise appreciating car is being offset.
I can't think of any relatively normal car that's an investment opportunity these days. We're at the end of a 15 year bull run in the car market with no guarantee it will ever come back to it's previous giddy heights especially with legislation around electric cars etc.
If pushed I would say look at the Japanese stuff. Supra/GTR etc
If pushed I would say look at the Japanese stuff. Supra/GTR etc
Few cars are genuine pension investments but has you described it as man maths to convince yourself to buy a car that will cover it's running costs then it would be a different proposition. For a long time this is how people bought forer example new Porsches. Buy new sell in 2 years make enough profit to cover the financial and running cost and get yourself on the list for the next batches if new cars coming through. If works when there is overs out there but won't last forever.
8IKERDAVE said:
The concept would scare me a little. What if values plummet or you write it off? I understand there's a risk with any sort of investment but it wouldn't sit right with me purely as an investment.
Well, at least it'll be you crashing it while enjoying it.If your pension fund gets crashed, it'll be because of someone else. Also quite possibly enjoying it.
I think it's not a ridiculous idea, but the rule is to only spend a small proportion of what you have available, and absolutely, no matter what, buy things you like and would happily keep.
My choice doesn't actually exist yet, but whatever Celica/Supra/MR2 analogue is rumoured to be coming out of Toyota in the near future feels about right.
Or a WO era Bentley.
For me, R8 V10 manual. Still seem keenly priced for the comparative rarity. Or a 458, as Ferrari's design language "progresses" even more I think they'll end up being even more desirable.
Though frankly I'm not sure much of anything is going to appreciate enough to offset its running costs, especially if truly used and enjoyed.
Though frankly I'm not sure much of anything is going to appreciate enough to offset its running costs, especially if truly used and enjoyed.
bristolracer said:
Buy something that will appeal to the generations behind you or may be stuck with a car that is old and perceived as a liability.
Problem with that is newer generations don’t want the old cars and the stuff being offered now is full of tech crap. Imagine trying to sell a BYD Seal in 5 years, let alone 20.stuthemongoose said:
I’ve watched my pension crash this week due to the orange one from the USA. But no so much with my orange one from Italy. That’s still in the garage just the same as it was.
It’s more fun than numbers on a screen.
Do it
(It’s probably a bad idea but you can’t take it with you)
The best investment cars are ones built in low volumes and were relatively unloved when sold new. The BMW Z8 is a good example and a more extreme example is the Lexus LFA.
You need to find a car that’s depreciation has bottomed out and now starting to rise.
A phase 2 Clio V6 would have been a good investment 10 years ago.
I’d imagine anything interesting from the early 2000’s would be a good investment.
You need to find a car that’s depreciation has bottomed out and now starting to rise.
A phase 2 Clio V6 would have been a good investment 10 years ago.
I’d imagine anything interesting from the early 2000’s would be a good investment.
Sorry, but its not really realistic from a purely financial perspective..
The only cars that really and i mean really increase enough that make it worth while would be something that was expensive to start with and was made in limited numbers.
Something like an F40 would have been an unbeleivable investment. 20 years ago they were £200k and now they are 2m.
However, you would still have to have that money to start with and these types of cars are extremely expnsive to maintain...
Lets take a Ferrari F355 as an exmaple and kept for 20 years...
Current prices for a good manual is £100k..
Even only driven low mileage per year, it can cost £4k per year to maintain.
Then there is tax and insurance, so lets be conseravtive and call it 5k, allowing for inflation over the 20 years
Also fuel etc being conservative for say 2k miles is going to be £500 a year
So, after 20 years, it has probably cost you around £220k
Also, take into account that initial £100k could have been invested elsewhere and got you a return of 5% per annum, allowing for coumpound interest, that £100k would become £265k
So, the £265k added to the additional costs of £110k, give a final value of £375k.
Therefore, the car would have to be worth £375k in 20 years for it to be comparible to sticking it in the bank and this also doesn't allow for compound interest on the continual spending for running costs, which is likely to be significant.
Sorry, but unless you become very lucky, or have a crystal ball, cars are not investments.
The only cars that really and i mean really increase enough that make it worth while would be something that was expensive to start with and was made in limited numbers.
Something like an F40 would have been an unbeleivable investment. 20 years ago they were £200k and now they are 2m.
However, you would still have to have that money to start with and these types of cars are extremely expnsive to maintain...
Lets take a Ferrari F355 as an exmaple and kept for 20 years...
Current prices for a good manual is £100k..
Even only driven low mileage per year, it can cost £4k per year to maintain.
Then there is tax and insurance, so lets be conseravtive and call it 5k, allowing for inflation over the 20 years
Also fuel etc being conservative for say 2k miles is going to be £500 a year
So, after 20 years, it has probably cost you around £220k
Also, take into account that initial £100k could have been invested elsewhere and got you a return of 5% per annum, allowing for coumpound interest, that £100k would become £265k
So, the £265k added to the additional costs of £110k, give a final value of £375k.
Therefore, the car would have to be worth £375k in 20 years for it to be comparible to sticking it in the bank and this also doesn't allow for compound interest on the continual spending for running costs, which is likely to be significant.
Sorry, but unless you become very lucky, or have a crystal ball, cars are not investments.
stuthemongoose said:
I’ve watched my pension crash this week due to the orange one from the USA. But no so much with my orange one from Italy. That’s still in the garage just the same as it was.
It’s more fun than numbers on a screen.
Do it
(It’s probably a bad idea but you can’t take it with you)
But probably not all of it!
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