Buying a car for investment...

[Lankytim]

As some people may have noticed the country seems to be being credit crunched and were supposedly plunging into a recession. Bad times ahead.

Everyone with savings is being shafted as the bank interest rate is now very low. Ive got a little dough stashed away to start a pension/rainy day e.t.c but thanks to the interest rate its not doing much!

Its got me thinking... its definitely a buyers market out there, people seem desperate to sell and theres some real bargains out there to be had. Would it be worth buying something tasty, stashing it away and selling when the credit crunch is over? Anything that goes up in value has got to be a better investment than money in the bank stagnating....

So, which cars would make good candidates for "investment"? Or is this a really silly idea that I should forget about ASAP?

[Autofive]

once you add storage and insurance costs, I'm not sure theres a lot of profit to be made
cars are cheap at the moment - but they will be a hell of a lot cheaper in sep / oct / nov when no one is buying and sellers can't or don't want to store over winter

[purplevanman]

pretty much what he said ^^

[Lankytim]

What about using one as a daily? No storage costs then..

[Darrel]

Ive been thinking Capris are still very cheap and should be going up in value very soon. However ive been thinking that for the last 5 years and its not happened
Whenever money gets tight leisure things are always the first things to drop. I'm after a caravan next year as they will represent great value too. Youve got to be able to hold onto it for at least 5 years I reckon to make it worthwile. In that time how much work will the car need to maintain it?? A car can rot badly in 5 years

[BenzBoy]

I think if the 80's has taught us anything, it's that classic cars aren't a good investment! ;D A lot of people lost their shirt by buying classics during the boom thinking their values will just keep going up, only to be stung when the bubble burst. I know that isn't quite the same as what you're suggesting, but I think there are far wiser ways to invest savings.

Besides that, I reckon owning a car as an investment would spoil the experience for me - always worrying about it getting stolen, damaged, rusting, the mileage building up, things wearing out... I'd sooner have a car for the pure reason of wanting to drive and own it rather than having some vested interest in it.

[Lankytim]

Good point, well made... killjoy

[Harold Ramp Bumface Fandango]

Hmm, daily use would mean repairs and maintenance which may not be too bad but then you've got the 'joy' of watching your investment getting bumped into in carparks, scratched, damaged and even maybe stolen, not to mention the added mileage. A real investment (imho) would be the kind of timewarp oap specials that show up occasionally at a stupidly cheap price, and even then it's need to be something along the lines of a Mk1 or 2 Escort etc. You might strike gold and find something like a Capri 3000S on the cheap etc but as others have said you need storage and insurance etc. Other than that trying to second guess what could become a cult classic and snapping a couple up while they're cheap might work but you could fall flat on your face and make sod all out of it. I'd also strongly suggest you buy with your head not your heart: that lovely one owner Allegro/Nova/Mk3 Escort/etc might seem a little belter to you and I but to most others it will be overpriced tat that is best forgotten.
Tell you what I'd do Tim: never mind classic/potentially appreciating cars, get in on the current market, buy one of the scores of insanely underpriced moderns from people who can't afford to keep them and sell as many as you can for a few quid profit before sinking your dosh into a building society account or something. It's cruel I know but 'ambulance chasing' cheap modern cars is the answer and if they're advertised cheap you're not holding a gun to anyone's head to sell them anyhow. Small-medium cheap runners are the answer and will turn you a nice little drink. I'm currently negotiating a potential deal that will see me get a five grand item for about £1800 and I'll be looking at a constant nice little earner out of that for a year or two at least I would think.

[joethefish]

^What he said.. If you wanna stick with cars, if you want to invest your money think its best with the usual stuff nice safe ()banks etc or perhaps wine/stamps or similar.
Good luck and wish I had some cash to do something with!

[suterman]

just buy a big bar of gold, then you can bury it in the back garden, it wont go rusty, get nicked or break down and you will always be able to sell it.

[Mr Lobster]

I can see that in principle it might work. If say you had a nice dry, heated industrial unit and could purchase five or six cars, keep them in there all year round with a bit of light use to stop them deteriorating then yes, there might be some profit to be made.

But otherwise the other expenses and hassle would easily outweigh any profit you'd make in five years time.

Better to buy old cars for the love of it in my mind... !

[Lankytim]

Humm, maybe you guys are right....

[Deleted]

Buy a house , propertys worth sod all at the mo , dropped mine by 30k in the last month and still no takers , anyone wanna move to pevensey bay ? lol

[useless inc]

I don't know about investments but when I see an E39 BMW M5 with FSH go through the auction for £4200 it makes me think I should buy it, run it for a month and sell it for a small profit.

The dealers are all chasing small efficient cars just now so there's some serious bargains on the go if you want something with a bit of muscle.

Other unpopular stuff:
2003 E42 M3 for £10,000
02 Lexus RX300 with 90k on it £2700
51 Plate BMW X5 with 69k on it for £6000
Y Reg S320 with 120k for £3100

[bazzateer]

You'd have to buy something guaranteed to go up in value. Something so unfailingly brilliant that there will always be people willing to pay well over the odds for one. That's right, the Hillman Imp (and it's derivatives). Go on, you know it makes fiscal sense!

[Lankytim]

I don't have that much money! Just enough to pay 3 months or so of the mortgage if I get made redundant or something... the wifes just reminded me of that fact.

Cant live in a Hillman Imp I'm afraid!

[205gti]

Jan 26, 2009 20:42:21 GMT useless inc said:

I don't know about investments but when I see an E39 BMW M5 with FSH go through the auction for £4200 it makes me think I should buy it, run it for a month and sell it for a small profit.

The dealers are all chasing small efficient cars just now so there's some serious bargains on the go if you want something with a bit of muscle.

Other unpopular stuff:
2003 E42 M3 for £10,000
02 Lexus RX300 with 90k on it £2700
51 Plate BMW X5 with 69k on it for £6000
Y Reg S320 with 120k for £3100

Agreed! I test drove a 60k FJSH Jaguar XK8 Convertible at the weekend. It was going for £8500, from a DEALER!!!!

You can pick up coupes for less than £6000. Engine and interiors are beautiful, then there's the looks of the things.

And, they were offering 3 yr unlimited mileage warranties by the end of production. Bulletproof (ish) !

I'm sorely tempted. Need talking out of it!

Back on topic, the only thing thats a good investment is something that is already expensive, proven, sought after and mint. E-type or something like that.

I'd also hazard a guess that a good investment could be something like an Audi Quattro or a totally mint Integrale, but over a long period of time IMHO.

Escort Cosworth?

[Autofive]

Jan 26, 2009 20:48:18 GMT Lankytim said:

I don't have that much money! Just enough to pay 3 months or so of the mortgage if I get made redundant or something... the wifes just reminded me of that fact.

Cant live in a Hillman Imp I'm afraid!

sounds like you need your money to work for you then

keep buying and selling shroudly until the recession is over and that 3 monthes mortgage could turn into mortgage paid after 5 years, or less. The house is a much better investment than most classic or performance cars, and you get to live in it

[useless inc]

That Porsche 928 that was in the For Sale section a couple of weeks ago for £2000 wouldn't be a bad shout. Seriously underrated, usuable and cheap to start with as £2000 isn't much for a 928.
I've thought buying that car a lot.

Now why did you have to go and mention cheap Xk8's?
Now I'm non ebay looking at them and considering things I can't afford.

[dollywobbler]

I've even stopped using the investment excuse with my good lady. Mainly because she's noticed that I make negative amounts on cars generally...

If you've got a big barn, then stuff it full of modernish big stuff but that Porsche 928 is a key point. I imagine tyres alone aren't cheap and while parts can be had cheaper than you might expect, there's a lot to go wrong. Leaving it sitting around isn't an option either as you'll then need to recommission the thing when every single seal has gone brittle and hard.

Nah, just stick to owning and driving them. If you make money, enjoy the moment!