Low Mileage and Values
Discussion
Headline in a recent issue of Sports Car Market was "Miles on, Dollars off" and it referred to a 14k mile Ferrari 288 GTO that sold for about $700k less at a recent auction than if it had been an ultra low mileage example as it was not deemed to be "collector quality". 14k miles on a 35 year old car is an average of 400 miles per year which hardly seems excessive. This mileage focussed mentality however does seem to keep quite a few people from driving their cars as much as they otherwise might. It prompted me to write a short blog on the Tyranny of Low Mileage.
Personally don't understand why people buy cars to just keep them in hermatically sealed garages from which they never emerge.
Personally don't understand why people buy cars to just keep them in hermatically sealed garages from which they never emerge.
PompeyReece said:
But do most cars sit and decay? Yes, I read in the Middle East there’s a large “garage” where this happens/happened but don’t most cars eventually make it to the market?
It really depends, quite a few very high value cars change hands privately and never appear in public. There are also all the Brunei cars that are slowing rotting away. Last I heard there are still three McLaren F1s that have been sitting there for years now.oo7ml said:
Interesting topic. I think everyone has a mixture of different reasons for buying classic investment cars. I don’t think it is as straightforward as 3 or 4 categories?
I am a ‘tech investor’ by day, and I’m relatively new to the classic car / investment market, but I always try to keep latter as a hobby.
I have 2 classic cars, an 1986 911 3.2 Carrera, and a Ferrari Testarossa, and hopefully a mother new classic soon (Speciale). Both of my current classic cars are immaculate and I took my time finding right / clean cars.
I don’t know if it is an age thing (I’m in my late 30’s) but new cars simply don’t do it for me anymore (electric, turbos, etc...) and on the other hand I have a greater desire and appreciation for older cars, each day, which is a win win.
Here are my reasons and thought logic for buying and using investment cars... which are probably boring and useless to you all :-)
- The right classic car will appreciate, which merely means my hobby and passion is not losing money for me (i.e - it’s a bonus if they are worth more than what I paid for them, but not my core focus)
- I buy cars that I plan on keeping for life, which means I don’t need to worry so much about how much mileage I put on them (I don’t buy cars that I only plan on keeping for 2-3 years)
- ‘Tech’ investing delivers a better and faster return than ‘Car’ investing... buy cars as a hobby, and not as investment / business.
- I’m more worried about damaging a car from a 5,000 euro trip than the fact there will be 5,000 extra miles on the car
- I drive each of my cars at least once a week to keep them moving... getting all of the temperatures up and working the car through all of the gears (i don’t take them out if the roads are wet, as I don’t want salts and other chemicals sticking to the car)
- You only live once, so drive your cars... especially if you have been lucky enough to get the cars you’ve always dreamed of
Great post and I really admire your approach.I am a ‘tech investor’ by day, and I’m relatively new to the classic car / investment market, but I always try to keep latter as a hobby.
I have 2 classic cars, an 1986 911 3.2 Carrera, and a Ferrari Testarossa, and hopefully a mother new classic soon (Speciale). Both of my current classic cars are immaculate and I took my time finding right / clean cars.
I don’t know if it is an age thing (I’m in my late 30’s) but new cars simply don’t do it for me anymore (electric, turbos, etc...) and on the other hand I have a greater desire and appreciation for older cars, each day, which is a win win.
Here are my reasons and thought logic for buying and using investment cars... which are probably boring and useless to you all :-)
- The right classic car will appreciate, which merely means my hobby and passion is not losing money for me (i.e - it’s a bonus if they are worth more than what I paid for them, but not my core focus)
- I buy cars that I plan on keeping for life, which means I don’t need to worry so much about how much mileage I put on them (I don’t buy cars that I only plan on keeping for 2-3 years)
- ‘Tech’ investing delivers a better and faster return than ‘Car’ investing... buy cars as a hobby, and not as investment / business.
- I’m more worried about damaging a car from a 5,000 euro trip than the fact there will be 5,000 extra miles on the car
- I drive each of my cars at least once a week to keep them moving... getting all of the temperatures up and working the car through all of the gears (i don’t take them out if the roads are wet, as I don’t want salts and other chemicals sticking to the car)
- You only live once, so drive your cars... especially if you have been lucky enough to get the cars you’ve always dreamed of
TheAnimal said:
Bispal said:
A £25M zero miles F1 or a £15M 20k miles F1? If they both double in value in 20 years the investor with the zero miles car will have made £20M more, tax free..!
You have made a wild assumption - that the investor with the zero miles car will actually wake up tomorrow morning... 
Bispal said:
They don't but the mileage is still on his MOT certificates (Nick Manson's) Perhaps he installed one?
24k miles in total, 1k miles in the last 6 years, I thought he used it more?
I believe it mostly gets used on the race track these days. Getting insurance to drive it on the road, given the value, would be extremely expensive.24k miles in total, 1k miles in the last 6 years, I thought he used it more?
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