Obsession With Appreciation

"Ferrari owners" is a wide brush. Perhaps obsession with appreciation is an "investor" thing but not an enthusiast thing. I can only speak for myself. I can easily afford my car and could care less if it appreciates. I also don't care about mileage.

 

Appreciation is a negative for me, makes cost of ownership higher. I suppose for some it's good for bragging rights or for those that told their wives it's an 'investment,' but for me all it means is more yearly expenses in insurance, taxes and parts when needed.

 

Since a car is not an investment, any "appreciation" is an added bonus if it can help offset maintenance (timing belts), tires, taxes, and storage costs.

 

I think you hit the nail nearly on the head. To many, Ferraris are status symbols, and no one wants a cheap status symbol.

 

For enthusiast owners who have the money to buy the car and actually plan on driving it, its not an issue. For those who think a modern Ferrari is an "investment" it comes up more often in conversation. Buying in an up market like the last 2 years.

What I would like to know is how some "buyers" are "in the market to buy a Ferrari" for years and years. But never actually buy a car. Perhaps like the appreciation owner.. do they find a way to talk themselves out of buying a Ferrari?

 

It's funny isn't it? They think that by simply handing over money and getting keys and title to a car, that they are also entitled to a certificate of 20 percent return every 3 months. Silly kids

 

I would think it makes the cost of ownership lower (?)

 

I'm guessing they mean that considering they aren't selling the car, the costs are higher (since you can only "realize" the benefit of appreciation through selling the car).

Realized vs. unrealized costs

 

As for the OP's observation, this applies to many brands, across different times.

Muscle cars when they were going up -- people talk appreciation / next big thing.

Porsches -- same

Bugattis, particularly years ago -- same

Studes -- years ago, same

etc etc

Now we have internet forums, just makes it easier to see

 

Once I was in a position to afford a Ferrari even if it was an entry level California I pulled the trigger. I did not buy for investment because that would be silly. I bought it because I want to drive it and not watch it collect dust



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Only if you sell it, but then you have no Ferrari - and if they're all appreciating then you don't get any benefit in getting another one (if you're one of those 'ladder climbers').

I bought with no intention to ever sell, so it just makes cost of ownership higher. Maybe my family will get the benefits of the appreciation some day, but it just makes it more expensive for me.

 

I have a 360. Still don't care, and have now put more money into the car than I can sell it for. I will be redoing the dashboard this winter and that will put me even more in the hole. But then the car will be restored to as close to perfect as I can get it. That's my only concern. Not appreciation. I buy real estate for that.

 

Another value thread? Don't we have enough?

 

I want everyone to be clear -- I did not start this thread!

.... but I wish I did.

 

There is a bubble about discussions on value / bubbles on here...

 

Oh, come on. How many threads about Ebay listing prices and auctions do we have?

"Don't we have enough?"

 

LOL!!!!

 

I think a lot of people are entertained by the discussions and consider the actual topic relatively independent of their actual ownership (in terms of "skin in the game"). It's not like owners get in a heated discussion and the "winner" sells his car at the number he substantiated just to prove a point.

It's just that we're all extremely informed on the products here, are intensely passionate about the cars, and acknowledge that they cost a lot and a lot of people want them. All of those components often lead to discussions related to pricing. I think it's great entertainment (although I don't participate with the intention to add fuel to the fire, rather I try participate sparingly and objectively).

Obviously in hyperactive markets like this the discussion is more relevant and more fun when a rising tide lifts all boats, but I think it's a natural curiosity to discuss something as mystified as this market in context of our favorite hobby.

 

A big part of it is rooted in human nature given the euphoria. And another big factor is because enough time has passed between today (2014/15) and the last time this happened 1989. 25 years is more than enough time to erase the memories of some, and at the same time, allow a newer and younger crowd to enter the fray that did not experience the last one, or have any knowledge of it. But the fact is there have been about three or four classic car bubbles so far. Just talk to the elder enthusiasts. They are a great source of information, and will tell you all about it.

The last real estate bubble is 8-10 years in our rear-view. There will be another. All it takes is for time to pass, and for people to forget.

 

The Real Estate bubble is still growing here is Silicon Valley, with home prices doubling in the last 5 years, contrary to your "The last real estate bubble is 8-10 years in our rear-view" statement.

 

Real Estate is all about Area, Area, and location. You can't move a house and have it hold it's value but you can sure move a car and expect the price to be the same.

You're talking about apples and oranges.

 

I was specifically commenting on Brad's real estate bubble statement, not making a correlation with real estate & cars.