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~the original p.tiddy~
Are exotic super cars becoming a 'practical' investment?
Over the past 5 years car collecting has become a huge trend. Values of older cars have gone through the roof. Article on that.
I love cars in general, and I enjoy watching car auctions on TV...it's fun to see your childhood dream cars being displayed and sold, and finding out what they are going for.
So recently I got on Ebay motors to see whats going for what...it's a lot different than it used to be that's for sure.
Here is the Lamborghini Countach...these things retailed for around $200k. If you still have one in decent condition then you have doubled your money!...well, I suppose inflation would play a role here, but you would have still profited.
Diablos have also gone up in price
Ferrari Testerossa
I feel like you can now view buying an exotic sports car as a legit investment rather than a huge waste of money...
buy a Ferrari for $300k today...drive it 20k miles or so...15 years later you might be able to sell it for $400k.
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NBA Superstar
Re: Are exotic super cars becoming a 'practical' investment?
For the people that can afford it, probably.
Last edited by fiddy; 03-29-2016 at 08:17 PM.
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NBA Legend and Hall of Famer
Re: Are exotic super cars becoming a 'practical' investment?
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Lurker
Re: Are exotic super cars becoming a 'practical' investment?
Your not taking into account things like insurance (Which will be sky high), depreciation (unless you park it in an airtight dry garage and never drive it, the condition of the vehicle will degrade), maintenance (which is also extra expensive on these vehicles).
A car is never an investment, sorry.
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~the original p.tiddy~
Re: Are exotic super cars becoming a 'practical' investment?
Originally Posted by embersyc
Your not taking into account things like insurance (Which will be sky high), depreciation (unless you park it in an airtight dry garage and never drive it, the condition of the vehicle will degrade), maintenance (which is also extra expensive on these vehicles).
A car is never an investment, sorry.
A lot of the people that attend classic car auctions do view their purchases as investments. That different than exotics unless we are talking very old Ferraris, but they are legit investments.
I guarantee you that Jay Leno views his collection as a legit investment and not just a hobby.
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~the original p.tiddy~
Re: Are exotic super cars becoming a 'practical' investment?
The thing with exotic sports are though, now they are viewed as 'collectibles' very very quickly. Some of them are collectibles right away as new. And they will actually appreciate in value because of that.
That is much different than a Toyota, or Honda, etc
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Two-Time Oscar MVP
Re: Are exotic super cars becoming a 'practical' investment?
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Re: Are exotic super cars becoming a 'practical' investment?
"practical"
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Re: Are exotic super cars becoming a 'practical' investment?
rich just gets richer......
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pronouns - he/haw
Re: Are exotic super cars becoming a 'practical' investment?
no.
maintainence, insurance and storage for an exotic super car is going to dramatically outweigh the increase in value over time.
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Re: Are exotic super cars becoming a 'practical' investment?
Buying a deprecating asset is never a smart investment.
Where do you get your investment advice dude? First twitter stock, now this? It's like the guy feeding you advice is trying to make you lose all your money.
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~the original p.tiddy~
Re: Are exotic super cars becoming a 'practical' investment?
Originally Posted by Nanners
no.
maintainence, insurance and storage for an exotic super car is going to dramatically outweigh the increase in value over time.
Maybe so but these things are much cheaper than you're probably imagining because these cars are never anyone's primary car and usually only get 1-2k in mileage a year. This is negotiated when buying insurance. Set amount unless you drive more than x-amount of miles.
Perhaps it's hard to actually tien a profit, but I definitely think it has become more practical than in the past due to the collecting market.
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The Renaissance man
Re: Are exotic super cars becoming a 'practical' investment?
Only if you have money to take the risk. btw, antique cars are better investment than newer supercars.
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~the original p.tiddy~
Re: Are exotic super cars becoming a 'practical' investment?
Okay some math after doing brief internet research.
Insurance on a $200k Ferrari driven less than 3k miles a year looks to be $7-$9k a year.
Maintenance on a Ferrari is expensive, a major service (every 3-5 years) is anywhere from $3k to $7k... With annual expenditures of $1k-$2k
So for a decade the insurance would be $70k-$90k over that time, and the maintenance would be anywhere from $16k to $48k in that time.
The low end would be $86k a decade, high end $138k.
So, in 10 years time your $200k Ferrari that you drive less than 3k miles a year would have to appreciate at least $86k to break even. That does seem very unlikely, but maaaaybe doable.
I'm thinking of you only drove 1k miles a year it would probably cut these expenses in half, so if you really limit your driving you may then be able to turn a profit.
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