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Classic cars as investments

 
Old 06-18-2019, 05:52 AM
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Default Classic cars as investments

Having hung out here in Vintage for years now, I get the feeling that not too many of us look at our cars as appreciating assets, even if their value is, in fact, increasing. Oh, I don't think anyone gets too upset if they find out prices of their cars have gone up recently. But the fun cars we keep in our garages are for the most part machines to be enjoyed rather than stores of value or inflation hedges. A recent article on the Hagerty web site has an interesting take on this topic that I think reflects this attitude, if past discussions in this forum are any indication.
https://www.hagerty.com/articles-vid...Monday_June_17

Having said all that, I will admit that my NSX ownership experience included watching the market. At the time the price I paid for it was a little above the upper edge of what I thought I could prudently afford to pay for a four wheeled toy. But I also figured NSX prices would hold steady and bring the total cost of ownership down to a reasonable number. As it turned out, after enjoying the best car I've ever owned for a few years I was able to see enough of a gain in value to cover things like maintenance, inflation, insurance, and some refreshing work, so that in the end the NSX didn't cost me a thing. But in the end it was the joy of driving it that is burned into my memory, not the check I deposited when I sold it.

So what's your story?
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Old 06-18-2019, 04:02 PM
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Part of the reason I bought my S2000 was that it would hold its value, or maybe go up over time. I've had cars that were great fun but absorbed a lot of money before being on-sold for a pittance. That was fine when I was single but these days family comes first so every automotive spend has to be more considered.

Funnily enough our wisest vehicular investment (possibly aside from the S2000) would be our 2013 Leaf. Bought second-hand last year so dodged the bulk of depreciation, cost about as much as 2 years' worth of fuel in our previous daily driver, so around this time next year it will have paid for itself, plus the set of tires I fitted (it came on Winter tires, and we don't really have Winter here), plus the power it has consumed to that point. Anything we get for it when we sell it will be money in the bank.
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Old 06-18-2019, 05:35 PM
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Although it is a TV show, Velocity's "Chasing Classic Cars" is a classic collection of stories like ours. You have a nice car, treat it well, maybe it will go up and then you die. Your progeny makes a fast deal with someone like Wayne, who is out to make a buck, and he does exactly that, after he gets the thing running again.

I agree you should just enjoy the thing even if that means looking at it sitting in a garage, if that is your thing. My wife and I have been having a ball with our little 2009 yellow S, driving all over the Sierras, HWY 1, Oregon, Yosemite, Lassen, Death Valley, Sequoia parks........you get the idea. We stay in B&Bs an just have a grand time touring. I suspect that we will continue in retirement.

The only vehicles I have known to consistently increase in value, to the point you will never sell for less than what you paid, are airplanes.
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Old 06-18-2019, 05:40 PM
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I've never looked at my cars as investments. Maybe that's why I'm poor. I've always purchased the cars I wanted and could afford, kept them as nice as was reasonable and have always been able to sell them at the top side of whatever their current value was at the time. When I find a car I like I will keep it and drive it until the wheels fall off. Owning the same car for ten or twenty years can be a norm for me. Had my first MGA for 32. Have had my current one for 14. Had my Maxima for 18, as I recall. My current truck is 26, although I've only owned it 11. So I guess if getting your monies worth in a vehicle that you really like is the goal, then I'm running on all cylinders. If making a profit is the goal, I'm probably only running on 4 instead of 8.
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Old 06-19-2019, 05:28 AM
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Originally Posted by dlq04 View Post
I've never looked at my cars as investments. Maybe that's why I'm poor. I've always purchased the cars I wanted and could afford, kept them as nice as was reasonable and have always been able to sell them at the top side of whatever their current value was at the time. When I find a car I like I will keep it and drive it until the wheels fall off. Owning the same car for ten or twenty years can be a norm for me. Had my first MGA for 32. Have had my current one for 14. Had my Maxima for 18, as I recall. My current truck is 26, although I've only owned it 11. So I guess if getting your monies worth in a vehicle that you really like is the goal, then I'm running on all cylinders. If making a profit is the goal, I'm probably only running on 4 instead of 8.
Ditto here Dave. My 02 and 03 Jeep Wrangler TJ's made a little profit but not much and that is only because we live at the beach where older Jeeps are in high demand.
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Old 06-19-2019, 06:29 AM
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A good pilot buddy of mine just picked up a G-44 Grumman Wideon for $157,000 at a Sherif's auction in Anchorage. What a steal! Easily worth double that. Original owner paid 3.3 in 2013. Now that is doing better than most cars.
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Old 06-19-2019, 08:33 AM
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My first (driveable) car was a 1958 Dodge, yes the one with fins. But it had a semi-hemi engine and was second fastest car in my high school class. I paid $150 for it, because it made a terrible noise when you turned the steering wheel. Five minutes with a wrench, tightening the power steering belt, fixed that. Later a drunk driver turned in front of me and I hit him. He paid me $250 for the damage and so I wouldn't turn him in. I later sold the car for $200 I think. So I did okay on my first car. I think that was the only one I made money on though.
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Old 06-19-2019, 09:37 AM
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I could honestly care less and have never even considered resale value of a car when I bought it. My process for daily drivers is to buy a very reliable car (Will never buy a car that is "cool" but has all sorts of issues people deal with just because it is "cool" ), and keep it till the wheels fall off. If I do not think I will WANT the car in 3 years then I wont buy it. I dont like car payments, so I like to pay them off and then get my value out of them. Has worked fine for me so far, as I have cars that are still extremely reliable after 10-13 years of ownership and cost me very little to maintain.

For my toys, I also do not pay much mind to resale value. I guess it is kinda cool that the S2k is going up, but that is not why I want to keep it. And that value increasing also adds cost to all the used parts (like engines) that many of us may need since we drive the crap out of our cars

I like some others that have posted look at cars as something to get my use out of, whether it be utilitarian or a track/autocross car or even an offroad vehicle. If I get lucky and one is worth a fortune one day I guess that is cool, but not holding my breath. I hate seeing cars just sitting in a garage because of resale value and the urge not to put miles on them. Such a waste!
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Old 06-19-2019, 01:38 PM
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I once heard an art critic giving advice to collectors.

If you're going to buy art for an investment make sure its something that you like because it might be hanging on your wall for a long time until it appreciates.
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Old 06-20-2019, 04:42 AM
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I fI had it to do over again I'd grab some Ferrari Dinos.
they weren't dirt cheap for a long time " because they weren't real Ferrari"
now they are going for stupid money.

https://bringatrailer.com/listing/1972-ferrari-dino-4
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