Having spent many tearful moments the last few months watching my investment portfolio dwindle to almost nothing, I am looking at other potential investment opportunities.

I am considering the wisdom of investing in limited production, factory (non modified) automobiles. Am I crazy???

Two weeks ago, I purchased a Ford Mustang Bullitt and from all indications, if I keep the mileage very low and maintain it in its original condition, I may be able to double my original investment in as little as ten years.

I truly respect the opinion of fellow s2k owners on this board and I can assure you that your opinions will bear heavily on whether or not I continue with this strategy.

 

While I'm no expert, I would have to say IMO that this is a highly risky venture. Not many cars aprreciate. The Bullit? perhaps, but it's not much more then a regular mustang, although the cool factor is way off the scale. It's easy to look back on those old articles of the Ferrari Daytona selling for 6k then shooting up to 10 million in one lifetime. But the odds are slim, and I think your money is better spent in the stock market.

When I was young my dad had a 300 SL gull wing. I loved that car, and low and behold a guy offered my dad twice what it was worth at the time and sold it. Years later it was worth 15 times more. My dad ran into the guy who bought it, congratualting him on picking a winner, only to find out the guy sold it 2 years later for about what he bought it for, thinking it was a good deal.

So IMO find something else to do with your money, Cars are for people that have already attained wealth, very very few ever get rich because of it.

Mike

 

Very well said

 

A car, ANY car is not an investment. A Honda is what I have. It will not retain its value - and there's one good reason for that - I drive it like it should be driven, like it was built to be driven.

If you want a car to be an investment, then you should drain all the fluids and lock it up for 30 years. There's no other way around it. The Bullitt Mustang, its not a bad car at all, but its still built upon the fox body from the Fairmont era. I've had a Mustang before and I know ever single bolt on that car.

Because of my 'venture' in one day owning a Ferrari, I've been hanging around ferrarichat and ferrarlist .com's and all I've got to say is, their "investments" aren't really investments at all - its just extra dough to them. The maintenance is hell and the upkeep is far more expensive than you can imagine. Just keep in mind, oil changes run about 250, and that's only 100 for the filter and labor alone.

But back to my car, its an S2000 like most here. I think that by investing my money in this car, I'm having more fun in this car than I've ever had in any other car. So, if investing money into this car, dropping some aftermarket parts into the car here and there, if it all keeps me happy, then that's what I consider, well worth the investment.

/my two cents.

 

A friend of mine has a Mustang Cobra Mystic (the one with the color that changes depending upon the viewing light and direction). He bought this new and has kept it with less than a few hundred miles on it. This is a late 90's car and he MIGHT get 3/4 of what he paid for it. When you talk to a used car salesmen about it the same line comes up over and over again. "In the final analysis, it's still just a Mustang." Unless you are willing to keep such a car for a LOT longer than 10 years, the resale on these drop like a perforated manhole cover. I don't think any modern day manufactured car will get you more money than what you pay for it, especially when you consider how your dollar is worth less in the years to come.

 

While some car investments might net some appreciation, I highly doubt a Bullitt Mustang has much of a chance... My dealer has two brand new ones sitting on the lot, MSRP. How many more out there?

Now maybe if you buy a rare original daytona racing coupe for say 2 million, it might be worth 3 to some collector a year from now

...and in times of lagging economy, the speculative car market gets hit as hard as the stock market!

 

You all have confirmed that which I really knew to be the truth, before I posed the question on this board. I am most appreciative of your gentle doses of reality.

I do not frequently post on this board, however during my daily practice of law from home, I do take frequent breaks to check in on the happenings of the day. I am often overwhelmed by the amount of wit and wisdom that I am exposed to from all of the fine people that post here.

I wish you all many bountiful blessings.

 

well..one can make a lot of money buying ,selling and trading antique and classic cars. i've specialized in mostly pre-war open wheel gp cars...bugattis,maseratis millers and such....i've done quite well but you really have to know what you're doing and be in the right place at the right time....there are "collectors"cars that would be fun to own and drive..but not for a sure profit...that's why i got the s2k...all the fun and none of the worry.

 

I wouldn't count on buying any NEW cars unless you get ahold of that new F60 Ferrari when it comes out, then immediately sell it for $100k-$150k more than you paid (like all of the people will do).

Besides a few cars at first (S2000's, type R's, Ferrari's, '01 911 Turbos, and a few others...) you won't make any $ on newly built cars......just look at all of the low mileage "Mustang R's" for sale everywhere...they only made about 250 in 1993 and the same in 1995, but you can get either for less than the people originally paid.

I made about $3k on my Shogun....(luck). I think if you were a antique guy who knew everything under the sun about cars you could do ok. (ie....buy a muira at auction, then sell it for $10,000 more when the title shows up?)

goodluck - Scot -i also made $700 on a vw beetle a long time ago

 

Regarding the original question, the short answer is NO.
Using automobiles as a long-term investment product is not a wise business decision. MOST production cars do not appreciate in value. The NY Times did a complete article on this topic ( approximately 2 years ago). . . When people were paying big $$ over MSRP for VW Beetles, S2000s, 911 TT, and a few other cars. . .

The bottomline of the article, mass produced automobiles (including most Porsche, Ferrari, Vettes, etc) may depreciate at a significantly slower rate than an average accord or camry. However, they typically will not appreciate in value.

The article discuss how mid 80s and early 90s automobile speculators (investors) paid large sums of money for "limited edition" or "limited production" ZR-1s, Ferrari, NSXs, etc and in most cases have taken huge losses on their acquisitions.

Do a search on the NY times web site. I found the article to be quite shocking. . . But the numbers don't lie. . .

Good luck