Buy, drive it 5 years, sell it for a profit. | FerrariChat

Buy, drive it 5 years, sell it for a profit.

Discussion in 'General Automotive Discussion' started by tundraphile, Jun 14, 2015.

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  1. tundraphile

    tundraphile F1 Veteran

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    #1 tundraphile, Jun 14, 2015
    Last edited: Jun 14, 2015
    Basically, a simple question to the brain trust what cars in your opinion will be worth more in a few years than today, even if you put a few miles on them.

    Take 308 Ferraris five years ago, you could find them for $30-60k,today that same car is about double in value. Air-cooled 911 is ghe same way, prices are crazy.

    What underappreciated car today will be on its way up?

    A couple jump out at me.
    996 Turbo. $35k will buy one today, incredible value for the money. At some point people will figure out this is a true supercar and prices will rise. GT2 variant even more.

    Gen 1 & 2 Dodge Viper. Hard to think they will ever be less that the $25-40k they are now, but could easily see them being more.

    The maybe cars are the Porsche 928, Jag XKR, and final 650hp Shelby GT500.

    What do you think or suggest?
     
  2. David_S

    David_S F1 World Champ
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    Unmolested NSX?
     
  3. tundraphile

    tundraphile F1 Veteran

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    #3 tundraphile, Jun 15, 2015
    Last edited: Jun 15, 2015
    But wouldn't an NSX like you describe already be climbing in value? I'm trying to think of cars at the nadir of their value.

    Shelby I mentioned is probably a bad choice as they are still almost new cars. But the question is would say a 928 (manual) be a car someone could buy today, tinker with and enjoy for a few years, and sell it on driving it essentially for free?

    In my observation, one of the telltale signs that a car has reached bottom is if there is a wide variance in prices based on condition. A rough but running early 928 might be $3000, while a mint 928GTS is probably well above $50k. There is not really a question if they are desirable, if they weren't that ropey 928 would be $500 like a 924. So say you buy that rough 928 as a project, fixing the mechanicals and sprucing up the interior. The really big ticket would be paint. A few years from now the condition is better, would you be able to sell the car and pay for all of the improvements along the way. Effectively your hobby is free, and you have no depreciation on the extra 10-20k miles you put on the car.
     
  4. Devilsolsi

    Devilsolsi F1 Veteran
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    There are a lot of cars at the bottom of their depreciation curve. I think just about any of these could be purchased and then sold for similar money (or more) a few years down the line.

    Porsche 928 (S4, GT) - The GTS seems over priced to me
    Porsche 944 (S2, Turbo, Turbo S) - Clean unmolested 944s are becoming very hard to find
    BMW M3 (E30, E36, E46) - low mileage stick coupes are already getting hard to find
    Dodge Viper (Gen 1 & 2)


    Lots of Japanese cars from the 90s are due to go up in value. Supra, MR2 Turbo, 300Z TT, Mazda RX7, etc.. With so many companies moving away from manual transmissions, I think any sports car with low miles and a manual transmission is a good bet.
     
  5. zudnic

    zudnic Formula 3

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    I have a theory that the traditional car collector is a dying breed. First we are making the assumption they will rise in value over time. Old doesn't always mean valuable, we have seen price drops before and that was with cars people could be passionate about. Thing is if you turned 40 in the 1980's, you could buy that 60's and 70's car you always wanted. The performance was at par or better then most 80's cars. You got looks and performance, it fueled the passion. Now we have a situation where most modern sedans can smoke an 80's and 90's sports. It harder to be passionate about a car on looks alone. I believe most buyers are going to go for modern sports cars over 60's, 70's, 80's and even 90's cars. If most of the 80's sports could hit 0to60 in 4seconds, mixed with good handling, the vast majority would have ignored 60's and 70's cars. The performance gap is now huge. Why pay $60k for a 308, when you can get into a much faster 360 for close to the same money.
     
  6. Bas

    Bas Four Time F1 World Champ

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    550 Maranello.
     
  7. dflett

    dflett Formula 3

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    E46 M3. I think they will start to rise.

    +1 on the viper
     
  8. definitelysomeday

    definitelysomeday Formula Junior

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    The $35K 996 turbos are already gone. The good ones are $40-$42K and up.
     
  9. David_S

    David_S F1 World Champ
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    As far as I see, NSX values have, and are climbing.

    Buy a nice one today, drive it for 5 years, and sell it - you will garner a profit.

    If I could, I'd buy one today, but would not plan on selling it at any point.
     
  10. Devilsolsi

    Devilsolsi F1 Veteran
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    I think for most people it is all about the cars you grew up wanting. There are a lot of people that grew up wanting cars from the 90s that now have the means to get the cars they were dreaming about. That is one of the reasons you are seeing the rise in values for cars like the NSX, 911, 355, etc... Cars from this area are also the last of a dying breed..stick shift, analog, and relatively reliable.
     
  11. SloW8

    SloW8 Formula Junior

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    This all assumes that the market isn't in a bubble type condition and that the prices of 911s and 308/328 won't make an adjustment in the next couple of years.

    NSX's have already started to appreciate.
     
  12. Smiles

    Smiles F1 World Champ
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    Me too. I don't think that they're out there today.

    Matt
     
  13. daviddallas

    daviddallas Formula Junior

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    On the NSX's, you guys talking 90's or the one coming out this year? I just assumed you are talking the 90's version.. and maybe I should have keep my 1990 300xz TT with manual. I still got $9.5k 2 years ago when I bought used for 18k in 1998. Not bad.

    Been a fan of the NSX also..
     
  14. El Wayne

    El Wayne F1 World Champ
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    That ship is already sailing.
     
  15. rdefabri

    rdefabri Three Time F1 World Champ

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    #15 rdefabri, Jun 15, 2015
    Last edited: Jun 15, 2015
    240Z and NSX. I would add the Lotus Elise as well.

    I already got the Ferrari 308 and Jag E-Type before the appreciation curve. Had the 240Z, but sold it...time to get in again!!
     
  16. rob

    rob F1 Rookie

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    I'm thinking maybe on the 450 380sl's I say maybe because there are still a lot of them on the road and they run forever so supply won't be dwindling anytime soon.
    Maybe the 1st generation S2000 they only made the ap1 for three years, I have one but will never sell.
    The C4 ZR1 corvette
     
  17. VGM911

    VGM911 Formula 3

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    Well said!
     
  18. tundraphile

    tundraphile F1 Veteran

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    A nice '93-95 RX7 as mentioned earlier. Lightweight car, unique powerplant.

    I would say the Supra Turbo, but prices on those seem to have already been up. Finding a nice one is also tough, not unlike 944 Turbo S. Most seem to have been driven very hard in their lives.

    To address the bubble possibility in 911 and 308's. I personally believe they are in a bubble and will correct. But out of one bubble there always seems to be another one. 993 models in particular have went through the roof, is a Turbo S really a $300k car? Someone thinks they are. Testarossas have also went crazy seemingly overnight.
     
  19. leead1

    leead1 F1 Rookie

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    As one poster said we buy the cars we wanted that we could not afford at the time.

    As you point out, my base 2014 Vette is faster then my 1965 Vette or the 1966 427 Vette I sold last year. The new cars also drive and handle much better.

    I think car collecting will never end we will just collect newer cars along with some classic cars, whatever classic means to each of us.

    Some one mentioned a Shelby Gt 500. I am lucky to own one of these 665hp delights.

    I drove a new Mustang. It has much better looks , driving and a independent suspension that my 2013 Shelby is lacking. I am keeping my high HP Shelby because it is quick. When they come out with a high HP version I may rethink this.

    Great thread and posts.

    Lee
     
  20. ferraripete

    ferraripete F1 World Champ

    buy a good pantera and hold for 5 years...you will sell for more than you paid.
     
  21. Wade

    Wade Three Time F1 World Champ
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    Buy a very low mileage unmolested Crossfire SRT6 Coupe, drive it as a weekend toy for 5 years and then sell at a [small] profit. They're at the bottom right now.

    For example:

    Chrysler Crossfire SRT 6 Coupe 2 Door | eBay
     
  22. tritone

    tritone F1 Veteran
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    928 is probably a bad example for your hypothesis: they are "Ferrari-like" expensive to refurb/restore....electronics & wiring.....upholstery/interiors, etc. Check out the cost of a V8 rebuild....

    Great cars, but only buy a really good one, and maintain it. Then maybe you will come out positive at trade-up time.....
     
  23. tbakowsky

    tbakowsky F1 World Champ
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    928 is a cool car, but unfortunately they are very very costly to keep alive. Last one I did, his bill was close to 20k. I think he paid 12k for the car. But people like what they like I guess. To him is was worth it because he loves the car.

    They are a serious pain in the butt to service. I cringe when sombody calls looking to fix one. But they are what they are.
     
  24. bobzdar

    bobzdar F1 Veteran

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    Dunno, I bought the car I always wanted and viewed it as a sunk cost. It would be a lot less enjoyable an ownership experience for me if I planned to sell it in 5 years (or at all) with the goal of turning a profit - what you're really valuing is the money and not the car. Then your maintenance priority shifts, your usage shifts etc. It becomes a conversation piece and garage art (or a parking lot C&C star) instead of a car used and enjoyed to it's limits. What's the point of having a race bred 9k rpm motor if it never sees a race track and 9k rpms?
     
  25. Have 355's started climbing yet? I always loved the looks but was scared away from the bigger service costs. I cant imagine a 6 speed 355 wouldnt be a car to appreciate eventually..
     

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