Can i anticipate the rise of 328GTS rising?

Do you have a link to said $29k 328GTS? I'd be curious to see the condition as it stands...

 

Number one investment is only a big guess and highly depends on how nice and origional the car is. Number 2 investment strategy is okay.

 

The 328 is a special car. There is no doubt the value will go up, but 5 years may be too short. In five years you will need to do a belt service and there will likely be other mainentance as well. But, I doubt you would get upside down in the car unless some serious stuff goes wrong. Certainly a purchase you wouldn't regret, and if you sold it after 5 years you would have had the pleasure on owning it. I would consider paying top dollar for a well cared for car, rather than trying to rebuild a neglected one. A car that commands a high value today will likely be worth more tomorow.
Best of luck,
dave

 

I'm not a tax expert but I think that if you can claim it as a business expense then you can write off the maintenance costs as well in addition I believe you must claim depreciation on business property so there is another tax benefit. The problem is that when you sell it you will pay capital gains on the difference between the depreciated value and the sales price. So if you pay $40K keep it for 5 years it will probably be depreciated to $10K for tax purposes, if the car goes up in value to say $80K you will pay capital gains on $70K. The bad news is if you sell it for what you paid for it you still pay capital gains on $30K.

I bet that someone here can give you better tax information.

 

Sorry- but with over 5,000 produced and no racing history I don't see a large upside to the 328GTS. Maybe in a couple decades.

The '89 have some cache as the most refined version of the series.

I don't see much downside- i think prices have settled out. But still it will take $2K a year or more to own and maintain the car.
If you can write it off or generate business with it could be a fun toy to have without as much hit.

 

If you can find a 328GTS for 29K, it will cost a lot more than 6K to get it into good shape. Better count on at least 40K total, unless you can do the work yourself. -Steve

 

IMHO. The early carbed 308's, especially the glass cars, will begin to appreciate long before the later ones or the 328. And all the Ferrari's (excepting the superFerrari's) from the 308 onward will continue to lose value "after" the early carbies start climbing. Dont buy a 328 thinking its an investment unless your planning to wait 30 years. If I were to bet, I would believe the 348 would appreciate before the 328. The 328 is a nice car, but nice isnt the major factor that makes a car appreciate. If it were that simple the 328 would be $200K and climbing and the Dino 246 would still be a sub $20K car.

As many have said, dont buy a Ferrari as an investment, buy it because you like owning it and driving it. People have lost far more money on these cars than have ever gained.

 

A Ferrari as a tax write-off would probably have the IRS licking their chops, especially when your first $5,000 expense rolls around.

To answer the original post, "keeper" 328s seem to be starting in the low to mid $50K range. I don't think you should expect enough increase in the value of the car to offset the ~$5,000 you're going to be spending on maintenance every 3 years (per Ferrari) or every 5 years (per FerrariChat). Plus, stuff goes wrong on any old car, and it doesn't take too many $500 bits and pieces before your "investment" is in the red. I like 328s, but the odds of making real money on one are dicey.

That said, the 328 is stupidly underpriced right now compared to the troublesome models that followed it. These simple/low-tech cars should age very well, while the Intel-inside Ferraris of recent years probably won't. I love my '87, but I always have my eyes open for another spectacular early 328 GTS in a cool color combination.

If I were buying one to put away, I'd look, ideally, for an '87-'88 concave wheel 328 (original design) with lower mileage and no or minimal modifications from stock. The '89s are overpriced, have the expensive-to-fix ABS and Mondial style wheels. Not the best value or look, IMHO. The early ones are scarcer. But, they're all good cars.

Also, I wouldn't advise getting a cheap one out of Florida. The state's notorious for humid climate and a lack of salvage titles, so you don't quite know what you're getting.

My two lira...

 

Really, the 348? Explain. (You always write interesting posts -- just not sure I agree with this point.)

I would think the 'glass 308s and 328s are the bookends to the series -- you either want raw/carbed, or injected/driveability and reliability. Very different, both very desirable.

 

Yes, figure on spending another $20k minimum during the next 5 years just to make it investment worthy (add another $10K if it needs painting), especially if it came out of Florida at that price.

 

To quote Michael Sheehan, a long time Ferrari expert: "The 308/328 essentially have no investment value. Despite a recent slow climb in prices, it's best to look at these Ferraris as used cars that hopefully will not fall in value." I think the best you will do is buy a good one, plan on spending $5,000 - $10,000 on maintenance and other cost over the next 5 years of ownership and then sell it for what you paid for it. If you happen to sell it a small profit, all the better for you, but I would'nt plan on that.

 

Fantastic advice. I am not a tax expert either. However, if the sole purpose of that car is to promote the detailing business then you are all set.

 

Whenever a business owner depreciates automobiles, the IRS is not aware of exactly what model vehicle you are depreciating. For instance, whenever I have a client that obtains a vehicle and wants to depreciate it, I don't put "Porsche 911" on the depreciation schedule. I put "automobile." I performed review services and prepared a tax return for a client that did, in fact, use business funds to purchase an Escalade and a 911. Not cheap cars. Another local business used their corporation to purchase a Lambo. Generally speaking, however, depreciation is limited on luxury autos. You won't be able to pay 50K for a ferrari and depreciate it over five years to 0. Also, an automobile used for business purposes is a section 1245 asset. Any gains on this type of asset are taxed at an ordinary rate.

Ric

 

Would, for example, a $6,000 service bill write-off raise eyebrows at the IRS?

 

Who really knows? No one really. But the earliest model in most any series has historically been the most appreciated. I feel the 348 is really the last model Enzo had any hand in, so it will be important for that. But its also a much more significant auromobile. Its very fast, and its styling isnt a copy cat of anything anywhere in the world. The 328? Its the last model in a line that began with the glass 308.

Like was said, better isnt always recognised as more desireable or more valuable. I just dont know as I would bet the 328 will appreciate much for a very long time. I actually suspect it will suffer the same fate as the 308, that it will continue depreciating until the cars begin to be fully restored. And thats going to be a long ways in the future if the 308 is any example. Time will tell in the end whichever way it goes.

 

328 isn't much of an investment and a $29,000 328 won't be much of a car.

Great cars but buy one for $45,000 and drive it.

 

True, but the 348 improved dramatically over its life cycle -- I think they even updated the exploding gearbox later in the run. So if someone told me "you must buy a 348" I'd probably go for the latest one I could find, probably a targa SS.

Also, the monocoque 348 was really the start of a very common construction technique for Ferrari. Even a Honda Accord is basically a unit-body car. Not sure the 348 is special in that regard, although it is quite a bargain right now for the horsepower.

 

Listen, I love 328's. Have owned 3 for many happy years and miles BUT investment? You have to be kidding. Let's examine the costs:

Say you buy a very nice 87-88 for 50K:

1. You will lose 2500./year in lost income. 3500+ if you financed it.

2. Average maintenance over a long period will average at least 1K per year.

3. Insurance varies, but let's pencil in 500./year.

4. If you drive it more than about 1500/year, there will be a mileage penalty.

Conclusion: It will have to rise at least 10% a year for you to break even with just putting the money in some interest bearing financial instrument and that does not even count gas, tires or unforeseen repairs. In other words, buy one if you want it but don't delude yourself about it being an investment.

Dave

 

Interesting statement, and I may be very wrong, but I don't think you will see the 348s appreciate for a long time. If you do it will probably only be the very last of the series such as the Spyder, the SS, (or maybe the GTS/GTB). The early 348 ts and tb were not well recieved at all. They were known for a variety of issues such as tricky handling at their limits, plastic interior parts that get sticky to name a few. Luca Di Montezemolo (sp?) was quoted in a publication saying he bought an early 348 and overall it was very dissappointing. Its true the later 348s are better, but the real improvement was in the form of the 355 (although that car has the valve guide issues). I'm certainly not saying the 348 is a bad car, just it has some issues and I'm not sure that I see it being a car that will appreciate at least not any time soon.

Also you mention that the 348 is NOT a copy cat of anything anywhere in the world? I'm sure you remember its big brother the TR. Back when the 348 was new often referred to/thought of as a baby Testarossa.

As for how much influence Enzo had a hand in when it came to the 348, I've never specifically heard that he had much of a hand in the 348. In fact I wonder how much much of a hand in any road cars beyond maybe the TR or some other model of the mid 80s. So I'm not sure Enzo will really play much of a factor in the price of 348s.

Obviously, thats just my 2 cents. If the original poster of this thread is really concerned with an investment quality Ferrari, I imagine its going to cost a lot more than 29,000 no matter what model it is.

Best regards,
Dino

 

All true. The only rationalization for a 328 is that you'll lose less money with it than you would on a new car. If you want a Ferrari, it's the "least stupid" way to put one in the garage.

Still, the 328 has outperformed Lehman Brothers and Merrill this year.

 

The bottom line here is to try and answer if the 328 is going to be an investment. Niether the 328 or 348 are likely to be "investments" in my lifetime. But I believe the early non catalyst 308 will. Time will tell.

 

I bought my 328 as an investment and so far it has not disappointed me.

Of course it was an investment in my personal happiness. From a financial point of view I bought with the expectation that at some point it would be worth -0- or whatever the scrap value might be. If when the time comes to sell it I can recover a fraction of what I have spent that will just be icing on the cake. If I can get more then that will be fine with me, as well. But it sure isn't my retirement plan!