blackboy

Does anyone know if a collectible car can be held in an IRA like gold or stocks?

musiker

Think I asked my accountant once, it cannot.

Last930

The problem is that you have to have someone act as custodian of the asset, and you cannot take constructive receipt of it. Theoretically if you could find a bank trust dept to sign on as custodian you could make it work, but you wouldn't be able to drive the car. Some years ago a company put together a limited partnership structured for retirement plan $, where they sought to raise a bunch of $ and then buy a collection of rare cars; each investor would own their relative slice of each car. At some point the goal was to then sell them all off at auction and return the $ to the investors, after the organizers took their share of the proceeds. I never followed up on it to see if they were successful in raising the $, but I would think it would have beaten the stock market !!
You can do this for tangible assets like real estate, oil &gas wells, etc; there is no reason it can't be done with cars.

blackboy

Thanks for the detailed response. I didn't think it would be possible without some crazy finagling. It's not a bad thing these days to be a little curious and informed about financial matters.

Trader220

No offense to the OP. I have seen this question pop up quite a bit around the popular Porsche forums these days. My first thought is this... when this question starts to pop up more and more its time to liquidate. When people start talking about collector cars as an asset class its time to figure out how to short them.

Collateral Default Swaps on collector cars? Anyone want to make me a market in one?

ponzzzz

Exactly right!!!! problem is once everybody is talking its usually too late. All the same cars are still for sale, nothing moving...Lamborghini contact for 700k, i mean does anyone actually think that these prices are real or can last???
Kinda funny how Jerry Seinfeld is consigning 17 of his collector 911s at upcoming auctions.........

Trader220

Not that Seinfeld is the barometer for the market and I don't know how astute a collector he is other than he owns some pretty rare Porsche's .... he is a seller and he clearly does not need to raise cash. What's that say?

When any asset has rallied several hundred percent in such a short period of time its usually a due for a pull back.

zirrah

I'd have to agree.

musiker

Just remember why we have these cars: Because they are way cool!
Not because they cost x or y or will be worth x or y later.
Because we need to enjoy stuff. And it is something we choose to spend some dough on.

BCT11

Agreed.

Whether it's worth $50k or $200k, if you're not selling what does it matter?

Vehicle equity still doesn't pay for repairing an oil leak.

By the way, what's driving the recent spike of 930 prices? The past 2 years has been considerable.