I"borrowed" this from another site - thought it might be of interest. With 2008 sales down 24% Bentley has closed their Crewe plant for several weeks. So too did Porsche who had to close their Zuffenhausen plant for a month. Lamborghini Orange County, the worlds largest Lamborghini dealer, has gone bankrupt and 2007 Gallardos with less than 500 miles are on eBay for LESS than the current supposed market price of a ZR1. Aston Martins are $40K off for a new DB9. The all-new DBS is similarly discounted. Aston Martin has already warned that the current sales downturn has hit its revenue line so hard that the company may soon breach its debt covenants. Ferrari has the most robust pricing of all. Here is how their three models are faring. The 612 Scaglietti has seen sales so bad that they are now built only to order. Low mileage 3-year-old used ones are down about 50% from their stickers. A low-mileage 2005 F430 6-speed can be had for LESS than the current supposed market price of a ZR1. Keeping in mind that the 599 was going for $500K in 2007 and $400K in early 2008 the current market for 599s is instructive. On eBay is a 2008 599 purchased last April so less than a year ago. The window sticker is shown as $356K (buyer probably paid more) and the car has less than 1K miles. It is being offered with a buy-it-now price of $319K. If you offered the seller $300K he would probably take it. There is a 2007 car with similar stats (less than 1K miles) and it is being offered with a buy-it-now of $297K.
I would have lost more money if I had left it invested instead of buying my F430 Spider in Dec. 07. Plus it is much more enjoyable then looking at a number on a piece of paper.
I am in the same position and don't regret the decision. Just thought the post would be of interest. Best
The original post was on the Corvette Forum discussing why some believe and others not that the ZR1 will hold its present "market pricing". Regarding all of feeling good about losing less money owning a car than (potentially) losing more not owning a car is a sign of the times. We should (tongue in cheek) all be congratulated for making a wise decision. Best
I couldn't agree with you more,and now might be the time to look at a second car! See you on the Avenue this year???
There are stocks that you could have bought in November that are up over 100% since then. It's a Market of stocks not a stock market.
You are absolutely right. The money I accumulated and invested by denying myself pleasures and indulgences lost more value than the money I splurged on an F-car. That means an F-car is a good defensive play
The first owner bought my Ferrari F430 for 200000 USD. I purchased that same car for 159000 USD on December 27, 2008. The first owner lost 20.5% of his original principal. Are you with me so far Einstein? If the original owner had purchased the S&P 500(symbol "spy") on the same day he would have paid 147.59 per share. SPY closed today at 84.57 per share. His 200000 USD would now be equal to 114800 USD. That is a loss of 42.6% of his principal. What should the first owner have done instead of buying a Ferrari, invest it wisely in a widely held US index? If I lose 10% per year to own the car of my dreams, I guess I am just a dumb investor. Maybe I have a good chance of out performing the S&P 500 like the first owner!
If you had bought NM on that date for example you would have paid $3.24. You could have sold it at the close today at $4.24. If you'd bought it on November 20th you could have bought it for $1.24. There is no Ferrari including the 250 GTO that has or ever will appreciate that much in the same length of time.
Calling names isn't the smartest thing to do here. Especially when the one you've called names happens to be a very, very bright investor, who could probably buy and sell you with his spare change. Art
There is also a very short series of numbers which, if picked correctly, will provide millions of dollars of return for an investment of only $1.
No one "needs" a Ferrari. We buy them for emotional reasons. They are expensive, impractical toys of self indulgence that are specifically designed to satisfy our egos... and I love it. Emotion does not change over time yet, over time, economies change quite a lot. AKA... it's only temporary. In case anyone hasn't noticed it, buying cars is about the lousiest investment you can make. If you really want to protect yourself, go buy an 86 Taurus for a grand, use it a couple of years, and resell it for a loss of $300. It will be the best car investment you will most likely ever make on a car.
It appears to me you just did what you suggested not be done. I started this thread to provide some "facts" as I understood them. Some of us are more wealthy than others but that does not make any difference. What does matter is how we "feel" about our lives. There as many happy Kia as Ferrari owners. Best
The difference is that some of us over many years have done tolerably well picking stocks including taking into account last year unlike those who thought that 599's or 430's were somehow a good investment. Feeling lucky? Want to put your Lotto number picking success and Modern Production Ferrari appreciation/depreciation numbers against our ten year stock picking numbers through tonight? ROI per annum? The idea that a modern production Ferrari is an investment or will hold up better over time than reasonably picked stocks is silly. Ferrari's YOY January sales were down over 50%. Think that bodes well for the value of used 430's and 599's? There is some math that grinds and grinds. Those that bought 430's and 599's because they Love them and plan to own them for many years will be rewarded in enjoyment not monetary appreciation. All remains good.
I wasn't calling anyone names. The facts probably apply to just about anyone here. Point is Jim has some very good intelligence regarding investments and return on same. He frequently provides that advice to those here. For someone to make a crack, i.e., use of the term Einstein in a derogatory manner was inappropriate, in my humble opinion. Art
I have only invested in one stock in my life, MCD, which has done nothing but made me money during this whole recession.
Actually, as long as you feel the need to give us all a math lesson here, this last statement would imply that Kia owners are a fairly sad lot, given the differences in numbers of cars. Sorry, couldn't resist. My high school physics teacher called me a "smart ass", to which I replied (to my immediate regret), "It's better than being a dumb one."
