£130k profit in 2 years from a DB5

[williamp]

Not bad, eh?

This DB5 convertable was sold at the Bonhams auction in 2010 for £359,000

http://www.bonhams.com/eur/auction/18211/lot/347/

Despite the original patina, the car went straight into works service for a full restoration, totalling more then £250k. Fresh from this, its now for sale:

http://www.dkeng.co.uk/ferrari-sales/226/Blue_Chip...

Price is listed as POA, but the current classic and aportscar lists the price as £745,000.

(and the magazine dont seem to like the paint job!)

Assuming it sells, thats a cool £130k profit in 2 years. Or a new V12 Vantage for yout troubles...

[yeti]

Hmm, I had a Gabbiano Blue Alfa... it's a nice enough colour, but I'd want that in California Sage or Silver Birch!!

Wrong colour but what a car... If I could afford the asking price, I'm sure WS would respray it for me again as I liked

[mikey k]

williamp said:

Not bad, eh?

This DB5 convertable was sold at the Bonhams auction in 2010 for £359,000

http://www.bonhams.com/eur/auction/18211/lot/347/

Despite the original patina, the car went straight into works service for a full restoration, totalling more then £250k. Fresh from this, its now for sale:

http://www.dkeng.co.uk/ferrari-sales/226/Blue_Chip...

Price is listed as POA, but the current classic and aportscar lists the price as £745,000.

(and the magazine dont seem to like the paint job!)

Assuming it sells, thats a cool £130k profit in 2 years. Or a new V12 Vantage for yout troubles...

As you say assuming it sells (for that )
in the meantime you've got £610k tied up.

[Murph7355]

mikey k said:

As you say assuming it sells (for that )
in the meantime you've got MORE THAN £610k tied up.

EFA.

Restoration quote wasn't specific...?

750k buys a lot of cars.

[George H]

Murph7355 said:

750k buys a lot of cars.

It does, but few are as cool as a DB5 convertible

[Greenslade]

Red Interior, thats at least £100k off.
Same for Beryl Read being a previous owner lol

[jonby]

with respect, even if the figures are accurate for both purchase (including all the extras) and for doing it up (which as several people have said, in both instances, we cannot be sure of), that's really not such a great profit in %age terms when you consider the risk - it could have gone wrong badly in terms of underestimating the costs or what the car actually sells for rather than what they ask
Factor in cost of laying out the capital, insurance, storage, etc and as ever, buying a car and spending fortunes doing it up is seldom done for profit unless one is very lucky.

[yeti]

jonby said:

buying a car and spending fortunes doing it up is seldom done for profit unless one is very lucky.

You may well be right - it's possible the car may have been bought as a keeper and circumstances have sadly changed. That does explain the less-obvious colours, which aren't exactly the best for resale.

[Jockman]

mikey k said:

...in the meantime you've got £610k tied up.

I'm with you all the way Mr K.

We are now in the realms of Net Present Values and Discounted Cashflows. With inflation being relatively high quite recently then the buying power of this kind of money could be seriously eroded whilst it is tied up.

I assume the owner is hedging on the appreciation of the car surpassing this scenario

Edited by Jockman on Monday 23 January 16:57