Before beginning, let me say that I bought my S2000 strictly for enjoyment. That it may depreciate just a little or possibly go up is gravy.

I'm also enough of a finance and economics guy who takes interest in these topics for its own sake. A few questions for the forum:

What do you think is holding up S2000 prices at the moment? How much is that pure driving experience and low running expenses vs. nostalgia and collectibility?

Where do you project S2000 prices, says, 5 and 10 years out? There will plenty of more recent MX-5 NDs, Boxster/Caymans coming down in price. Hopefully there will be a fifth generation Miata and maybe a new S2000. All of these will compete in the not large market for roadsters with the S2000.

Thanks in advance!

 

As another finance and econ guy -- never think of cars as investments -- ever.

The used car market in general right now is on fire, but if you look at the overall markets -- stocks, real estate, etc. (with the exception of commodities) are near all-time highs across the country (despite being in a correction these past few months).

The worst example is the Porsche 911 market, but the NSX market is also a good example.

I personally think everything is WAY overpriced.

The only reasonable argument one could make for the s2000 is that unabused cars are getting harder and harder to find. I don't feel like that's changed in the past 5-10 years for s2000s, but prices are up 15-30% for my personal favorites (mint AP1s) over that time period.

Unless you have a sub-10k mile car with zero dents, zero rust, zero paintwork, zero issues and you're going to store it for 10-20 years, just drive the damn car and enjoy it. You can get a better return in other markets.

 

To answer your question as to why they're appreciating or at least inflated, is because (I believe) of the reason I love them in as few details as possible: great feel roadster, great transmission, highest hp per liter engine except for one ferrari model at least up until 2009, great gas mileage, and last but not least... IT DOESN'T HAVE A LOT OF BUTTONS AND CRAP. The main thing keeping me from today's roadsters are the fact that they're getting too fancy with them. I want as close to barebones as I can get without having to drive an Elise (which would probably be my second choice to an S2000 still). The miata is a good car but I don't want all that extra crap options they tack on to the car. Older miatas are fine but there's just way too many of them, unlike the S.

 

Prices might hold on CRs or early ap1. I don't think anything becomes collectible and I wouldn't be willing to pay collectible prices.

 

Driving experience and low operating expense is what put me back in a S2000. Unlike a 996 or E46 M3, I can drive the S2000 hard without being overly concerned about a huge repair bill. I also think the design is timeless and looks good from every angle.

Although cars are rarely appreciating assets, they should still be viewed as investments. A $15,000 car that depreciates to $10,000 in five years versus a $15,000 car that holds its value is no different than $10,000 earning no interest versus $10,000 earning 8-9% annual interest over the same time period.

 

A little off topic but mentioned above. 911 prices are going berserk. good to excellent condition 964, 993 , 997 gt3 are all appreciating. These cars start at 6 figures. We will see what happens!!

 

Since you're a finance/economics guy then the explanation is:

1) There will always be a constant demand for S2000, unlike the Toyota Tercel. Hence, the \ demand line.

2) The supply of S2000 is constant, since production has ended. Hence, the | supply line.

3) The supply of S2000 is diminishing every year due to collisions and some owners not willing to sell them (since S2000 is such an awesome drivers car). Hence, the | supply line will move to the left.

4) When reducing the constant of supply, this will drive up the price of the good because sellers will want to sell as high as of a price for people who wants to buy a S2000 since S2000 is such an awesome drivers car!

Substitute the below graph of i to Price, and Money to supply of S2000

 

Anyone feel like prices have dropped compared to this time last year? I've been seeing a lot of deals in SoCal recently that have given me slight buyer's remorse over my car

 

Why would you feel remorse? Everyone buying a car should always expect a price drop. The S2000 is a good car, but the CR has the most realistic chance of holding value.

 

Remorse was probably the wrong word; I don't expect my car to retain much value as it's my daily driver. I've just seen a lot of cars at fantastic prices recently and thought "damn, I would have loved for that to be available when I was shopping."