328 depreciation and maintenace for 3 years?

I do not know the prevailing conditions in the US, but in Europe you could certainly do it. If the car is OK in the moment you buy it, I cannot see why you should expect for any major failure.
In addition to that, prices of 328 in Europe are beginning to raise again. Even if there are a lot of them around, the fact is that this car is unanimously considered a classic. If you want it, you cannot have one manufactured so you revert to the used market.

Ciao

Eugenio

 

After 3 years, if the car is in good shape to begin with, I don't see how you could lose $10-15K. I have had mine for 3 years, and I could sell it for about the same as what I paid for it. Get the right car first, and you should not lose money, certainly not $10-15K.

The "value" of 328s have remained fairly constant over the last few years, but there is a huge range. An early model in fair shape may be in the 30K's, while some people are asking in the 60K's for mint 1989's (the key word being "asking").

 

Like real estate, you don't make or lose money when you sell a Ferrari, you make or lose money when you buy a Ferrari. In other words, buy it right. Find someone highly motivated to sell it right then and there. If you're one of these that has to schedule a PPI from the local Ferrari dealership and wait 1-2 weeks for it, these kinds of deals aren't for you, as you have to have cash in hand and ready to evaluate the car (quickly) on your own or there will be someone else that steps in there and says "Screw the PPI I'll take it."

I have done this myself two times. The first time I bought a 1982 308GTSi on the spot for $20K, drove it 2 years, spent $1800 on it, and sold it for $27K "right quick". I bought my '90 348ts on the spot for $42K, 2 years into the engine-out service. I've since spent $2500 on it for things that a PPI wouldn't have picked up anyway, but I am still way "in the money" on the car.

So find a 328 you can buy right, drive it for 3 years with $1K to $2K on maintenance, and you will drive it for free. Heck you might even make a a few $ grand!

If you have to have a PPI and all of that bunko, plan on "paying market" and, at best, "selling for market" down the road. That's where "breaking even" gets really "iffy."

 

I'm 3 years into my 328 as of next month, and if I was to sell it, I MIGHT lose $3 or $4k. I would only lose on service $$$, not depreciation. I bought it well, and would probably recoup some of the service $$.

 

I would say depreciation would be negligible. If the car doesn't give you any major problems & you don't spend money upgrading (exhaust / rims), I don't think it will cost more than $5k for 3 years - Assuming it has had the major service done within the last year. This is not counting shipping costs or sales tax.

I'm going to lose $16k in one year, but I guess I am not the sharpest tool in the shed. This includes $5k for shipping and sales tax.

 

Often times, those "upgraded" rims you buy for $5000 actually COST you $5000 when you sell because the buyer thinks they look cheesy. So that's a $10,000 swing right there. When you put those cheesy things on your car, make sure you keep the factory stuff for the next owner, as you can bet the cheesy stuff will be in his next garage sale.

 

Based on this discussion, what would be the market value of a '87 or '88 red/tan with 30k miles? Thanks.

 

Yep, always try to keep the original stuff if "upgrading". You are better off putting the original back on & re-seeling the upgrades.

 

SAF1...as to market value:

Just purchased an '87 328 GTS...red/tan...27k miles.

ALL records since new, original sticker, manuals, tools, leather wallet etc. paint in absolutely perfect condition, mechanicals VERY strong, interior fair (seats need lots of work, dash and everything else is very good)

I paid 47k. I'm very satisfied...I've put 1k miles on it in less than 3 months in very hot weather...she's run very strong, very consistent, and very even oil pressure/temp, water temp etc...

I paid a bit more...I suspect around 3k or more, but I think I got an excellent specimen.

Steve

 

That is a very fair price for that car. IMO - Not too high and not too low. I don't think you overpaid at all. Enjoy!

 

Thanks. Enjoy it! Let's see some pics..

 

There is a big range for these cars. 47k for that car sounds high to me, but I found a motivated seller and definitely got a strong deal.

Did it have a 30k mi major service done before you bought it?

My personal benchmarks...

Hypothetical desirable baseline vehicle:
Red/Tan 1987 328 GTS, 30,000 miles on the clock, with the 30k major service completed. Most/all records since new, all manuals, pouches, tools, books. Interior and exterior in good condition, no signs of abuse and no accident history.

Private party "good deal" price (w/ 30k major service done): 41k. Asking prices will vary from 42k to 45k (common) to 50k (quite padded high) to 55k (absurd for this car). Most private individuals will let this car go for 45k (don't pay more).

Dealer prices are never a "deal," in my opinion. 45k and you'd be doing pretty well, most will bottom out at 47k for this car, asking 50 to 55k. Some wouldn't budge less for 50k, depending on what they have into it.

Again, same car, big (10k) range depending on where/how you buy.

I'm beginning to take the stance that these cars have stopped depreciating... They only get better with time. In my opinion, no car is more reasonable to own by your average everyday working class guy; no car combines the looks, performance, reliability, and the REFINEMENTS inherent in the 328. My (engineer's) opinion. It's a no hassles, practical yet over the top minimal-hassles Ferrari that can be "realized" by normal people, and is indeed a classic. I do see it appreciating (not just because I own one).

In the end, get the right car--a few thousand here and there, no big deal for what this car brings!

And... As to the original question... If done right you don't have to lose 10k. If you pay for the 30k service, the car will sell for 3k to 4k more, and you'll get your money out of it. Other repairs and consumables will just have to be dealt with. I could sell now (two months later) and come out ahead, I suppose...

Good luck!

 

You mention putting about 15,000 miles on the car. I think this may be the biggest depreciaton factor. It appears to me that cars get m ore difficult to sell once they pass the 50,000 mile mark. Most of the $60,000 asking price 89s are in the 10,000 mileage range. If seles are getting these prices, and I think they are, they are getting a big premium for low miles. These buyers probably plan to drive the cars very little.

It's a shame these cars don't get driven more. Say your bought a 40,000 mile car today and three years later offered it at 55,000 miles. That's where you are most likely to take the hit. Of course the average milease of all 328s will increase during that time, but I can't guess if that 50,000 mile wall will still be as big a factor.

My next 328 will get about 10,000 miles per year, so I'm planning to get a car with fewer than 20,000 miles. That will mean paying a little premium up front, but I think it will be a big factor in the car's value 30,000 miles later.

 

I wouldn't pay over $41k for an 86-88 328 w/ 30k miles unless it had a recent belt service from a reputable mechanic. With the service, I wouldn't pay over $45k, and I'd be hard pressed to pay that. There are too many good cars out there that can be had for less. I know of a red 86 that was in great shape, and had all the services done that sold locally for about $40k.

 

They are going up in value gradually no question about it. As for looking for a deal well yes but its really better to buy the right car. Whats a couple of grand more if you keep the car forever.