|
|
Jan 26, 2009 21:35:52 GMT
|
I was offered a nice XK8 coupe for £3500 a few weeks ago. Trouble is with cars like that, any major technical problem will wipe out any profit and render you officially screwed. A solid E30 BMW or Merc 190 in need of a good clean and t cut will usually sell for a few hundred on ebay. 2 weekends of elbow grease, a spuce up of alloys and interior and you'll get the best part of a grand for it.
Just keep an eye out for bargains and don't be afraid of asking people in the street or leaving notes on windscreens (i've bagged a few bargains like that).
|
|
1964 Ford Galaxie 500 Convertible 1989 Nissan Laurel 2.4 Manual 1989 Ford Granada Scorpio 2.9 1989 Nissan 300ZX Manual 1998 Merc E200 Auto 1988 Nissan Bluebird Exec Turbo
|
|
|
Mark
Club Retro Rides Member
Posts: 2,097
|
|
Jan 26, 2009 21:52:15 GMT
|
If you can put something away for 10-15 years and preserve it's condition then there is big money to be made if you buy carefully.
|
|
|
|
|
|
Jan 26, 2009 21:52:33 GMT
|
One of the finance magazines once did a test on this very subject. They put together a portfolio of classic cars he would have bought 20 years ago fairly cheaply and compared them to their value currently. As I recall the portfolio was a Ford Zodiac, an MGB, a TR6 and an E Type Jaguar.
Once you have accounted for the effects of inflation, and the interest you would have had with the money in the bank instead. The portfolio had made a net loss even with a minor allowance for maintenance costs (which was minimal and the vehicles were anticipated to be stored) and no allowance was made for storage costs either as they were anticipating their readers would have a sufficiently large garage to keep them all in!
I can't remember the figures that they used, I believe they were using Practical Classics price guide for some other source. I can't remember if the term was nearly 20 years or whether it was 10 years for 15 years. It was some long time anyway! As I recall they suggested bonds as a good long term investment at that time, or just a good old high rate saving account. As I don't have lots of spare money to invest I haven't kept track of what investments are for a safe long-term return these days.
I think if you were lucky you could have bought the mark 1 Escort or a VW camper at the right time and made a killing, but that was in a wildly different economic situation to what we are seeing now.
If this recession is as long as some of the pundits say it will be then it could even be a new generation of enthusiasts doing the buying when the recovery comes. Who knows what it is that we'll turn them on! Maybe it's time to stock up with Saxos or Novas? If this sounds unlikely than 15 years ago or maybe 10 years ago the prices of mark 1 Escorts mark 2 Escort and VW campers would have seemed equally unlikely.
As I always say with these things: " if I were needed predicting these kind of trends, then I would be rich man today. As I am not, I cannot!" Also I notice a distinct lack of millionaires amongst our number suggesting I am not alone in my inability to predict these things with any kind of accuracy...
|
|
Last Edit: Jan 26, 2009 21:54:43 GMT by akku
1937 Austin Street Rod - 1941 Wolseley Not Rod - 1956 Humber Hawk - 1957 Daimler Conquest - 1966 Buick LeSabre - 1968 Plymouth Sport Fury - 1968 Ford Galaxie - 1969 Ford Country Squire - 1969 Mercury Marquis - 1970 Morris Minor - 1970 Buick Skylark - 1970 Ford Galaxie - 1971 Ford Galaxie - 1976 Continental Mark IV - 1976 Ford Capri - 1976 Rover V8 - 1994 Ford Fiesta
|
|
|
|
Jan 26, 2009 21:56:51 GMT
|
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 Good point but none of those are investments, they're cheap toys and will lose more money before they get anywhere near being stable imho. Wasn't there a report recently that those Audi 4x4 models (Q7?) are losing a grand a week on dealer's forecourts? Tbh there's not one of those cars in that list that are woth having, maybe the Merc but the huge hits on horrible monstrosities like X5s will scare everyone considering buying a big car witless anyhow.
|
|
Corsa Apology Champion 2014.
|
|
kevfromwales
Posted a lot
the conrod's REALLY out the block now!
Posts: 3,909
|
|
Jan 26, 2009 22:06:59 GMT
|
buy a barn
buy a load of cheap undesirable stuff that has mint panelwork / shells (but shagged engines etc) - like get friendly with a few scrappers
stack (carefully!) the shells and tinwork after spraying them all with engine oil / wax
seal barn
open in 20 years time, sell to historic motorsport / rallying types
win
that's my suggestion, although, of course, my big barn is full of rusty old tat...
- kev
|
|
Almost on the road: b11 sunny breadvan, e36 tds, 325i skidcar,
nearly there: ford f250 tathauler, suzuki alto, u11 bluey
not for a while: ford pop, 32 rails,
not in this lifetime: ruby, '29 hillman
''unfortanatly I'm quite old and scruffy and in need of some loving. my drive shaft needs a new boot....''
|
|
|
|
Jan 26, 2009 22:11:07 GMT
|
as I said before akku ,the AE toyota's are good news except the AEiou! i've always considered my retro's and rally cars[past] to be a luxury item ,as freinds and family have had boats ,caravans ,golf memberships etc which all have running /mooring/playing costs, a couple of years ago I sold 3 cars fairly quickly because I was offered good money for them! they were not for sale but 'at the right price everything is for sale' if you are buying for investment a bit of knowledge is important but also luck can play a hand! if 2 years ago you bought a ur quattro for £4995 and then in a 3 month window of ashes to ashes you sold it for between £7k and £10k then this would have a tad of luck involved don't you think? early subaru legacy's climbed sharply when the tragic death of colin mcrae was announced! japanese importers are doing large sums on old j'tin that 5 years ago would'nt have left the docks!! I sold a very high spec rall prepped mini clubman 2.5 years ago for £1275 ,with no changes it has recently sold for nearer 5k !!! ithink buying for future investment is hard unless A you have a crystal ball or B you have 2 million to spend on something with a famous past etc, things change every day ......and its not just the economy
|
|
yes ,it started badly ,petered off in the middle and the least said about the end the better!!!
|
|
|
|
Jan 26, 2009 22:14:56 GMT
|
There was a time when the glossy magazines were full of new rubber bumper MGBs with zero miles that people had bought and kept with the idea of selling later. Last of the line Minis crop up on ebay from time to time too. I very much doubt that the money made is significantly more than the money made if you put it in a bank.
What you need to do is guess what the next big thing is going to be and buy one. Look for something that was desirable when new, has reached rock bottom price ways, but that you can still get nice ones of. Possibilities?
Jag XJ40. As the SIII XJs go up in value as only nice ones are left and they are rare, tidy XJ40s may become sought after.
Mk1 or 2 Mondeo V6. Fast Fords always have their day once there are no decent ones left so maybe worth a punt.
Early MX5. I reckon these are as cheap as they are likely to be. Which means they'll get into the wrong hands and get trashed so nice ones will become rare.
Fiat Coupe & late Alfa GTV. As above really.
However, I've never made money on a car yet so I may not be the best person to advise.
|
|
Jaguar S-Type 3.0 SE
|
|
|
|
Jan 26, 2009 22:43:27 GMT
|
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 Good point but none of those are investments, they're cheap toys and will lose more money before they get anywhere near being stable imho. Wasn't there a report recently that those Audi 4x4 models (Q7?) are losing a grand a week on dealer's forecourts? Tbh there's not one of those cars in that list that are woth having, maybe the Merc but the huge hits on horrible monstrosities like X5s will scare everyone considering buying a big car witless anyhow. I agree. None of these are long term investments and other than the 2 M cars I wouldn't want to own any of them. However all these cars could currently be sold on for a few bob more than they're selling for at auction as the trade don't want them. It's probably and easier way to make a few quid than buying something for long term investment. You do have to have the balls/know the right people to buy something like this at auction as, as mentioned a cheap M5 or XK8 that goes wrong will quickly make you pee your pants.
|
|
|
|
|
|
Jan 26, 2009 22:47:19 GMT
|
Cant live in a Hillman Imp I'm afraid! I'd beg to differ!!
|
|
|
|
|
|
|
I think buying any car as an investment is insanity whether it's a classic or a modern. It's just not a stable market. When cars are worth a lot of money people always seem to think that the bubble will never burst, but it invariably does!
There are far, far, far wiser ways to invest money. Tim - I'd keep enjoying retro cars without the burden of any financial interest, and put your money into a bank, or some other financial institution with some assurances.
As my dad always tells me: only gamble what you can afford to lose. And classic cars would be a massive gamble I think.
|
|
|
|
|
stealthstylz
Club Retro Rides Member
Posts: 14,842
Club RR Member Number: 174
Member is Online
|
Buying a car for investment...stealthstylz
@stealthstylz
Club Retro Rides Member 174
|
|
I've never "got" keeping savings in a bank lol. 5% APR isn't a lot really. £500 a year on £10000 doesn't seem like a good return to me at all.
Matt
|
|
|
|
|
|
|
its more stable than most investments. There are better returns you can get but they are always on riskier investments which can go belly up.
Get a decent account with compound interest and you can see some return. Even in todays market my daughter's child saving account is paying 10%. and next year she gets 10% on this years 10%. By the time she's 21 the intererst component will be a significant element of the ballance compared to the principal.
|
|
1937 Austin Street Rod - 1941 Wolseley Not Rod - 1956 Humber Hawk - 1957 Daimler Conquest - 1966 Buick LeSabre - 1968 Plymouth Sport Fury - 1968 Ford Galaxie - 1969 Ford Country Squire - 1969 Mercury Marquis - 1970 Morris Minor - 1970 Buick Skylark - 1970 Ford Galaxie - 1971 Ford Galaxie - 1976 Continental Mark IV - 1976 Ford Capri - 1976 Rover V8 - 1994 Ford Fiesta
|
|
|
|
|
As Jay Leno said .. If you sell a car you've modified for more than you spent on it, you're doing it wrong. Finance talk Here ... Car Talk Here thankyou.
|
|
|
|
|
|
|
Plus, by the time you've stored it long enough to increase in value enough to offset the cost of recommissioning it, they'll have banned them anyway
|
|
Last Edit: Jan 27, 2009 9:50:21 GMT by Lewis
|
|
bortaf
Posted a lot
Posts: 4,549
|
|
Jan 27, 2009 13:00:04 GMT
|
I think a lot of us are getting confused between a good car and an investment, lets face it good cars rarley turn out to be a good invetment appart from maybe the Etype, the Mk1 escort was a woefull car as an 11100 Base which i why they all get changed to a better and more acceptable spec. XJ40?? undoubtedly a good car BUT how many jags have exactly become classic and overcome the fuel cost issue? err the E type and........ THE only way to make money is to buy when they are curse word and unloved at £50 not when they are a bit of a bargin at £3000
|
|
R.I.P photobucket
|
|
|
|
Jan 27, 2009 13:47:53 GMT
|
Lots of interesting opinions there.... Sounds like buying an "investment" motor is too much risk to be worthwhile. As mentioned its better to just enjoy old cars for what they are, rather than bringing an investment element in to spoil the fun. A few years ago I nearly bought a 6k 3 door sierra cosworth. It was absolutely mint. The only problems were I couldn't insure so couldn't drive it and the chances of it being stolen while in storage were astronomically high. At the time cosworths were being stolen all the time, once word got out one was in my parents garage it would have gone pretty quickly!
Not sure what it would be worth now but either way the cost and risks involved just didn't add up.
*6 edits for spelling there, another record?*
|
|
Last Edit: Jan 27, 2009 13:54:47 GMT by Lankytim
1987 Maestro 1.6 HL perkins diesel conversion 1986 Audi 100 Avant 1800cc on LPG 1979 Allegro Series 2 special 4 door 1500cc with vynil roof. IN BITS. HERITAGE ISSUES.
|
|
|
|
Jan 27, 2009 21:43:29 GMT
|
I'd seriously suggest for every grand you spent you could expect to make at least £400 on top without trying from modern/modern-ish cars Tim.
|
|
Corsa Apology Champion 2014.
|
|
|
|
|
there is only ONE safe investment, and that wont change.
it is possibly the ONLY thing guaranteed to always go up in price.
LAND.
|
|
|
|
|
|
|
A chap I know in Aberdeen is some kind of hotshot accountant type. He has a barn where he stores 3 Ferraris. He never drives them, but gets a dealership in edinburgh to come up every year with a transporter to take them away and service them etc. The cars are kept in good working order, and mileages never increase. I would assume he bought them as an investment.
|
|
1986 Panda 4x4. 1990 Metro Sport. 1999 Ford Escort estate.
|
|
MWF
Posted a lot
Posts: 2,945
|
|
Jan 28, 2009 10:35:04 GMT
|
If you bank your cash wisely you should be looking at an average 10% return with the ongoing benefits of compound interest. Sounds poor in the short term but very rewarding over time.
I wouldn't look at the recent plummet in cars values as an investment, look at it as a saving. Anything you intended to buy 6 months ago is now cheaper, buy it and bank the difference. Or wait a little longer and save even more.
|
|
|
|
|