Ascend

Car values are crazy now not just gt3 but anything deemed remotely collectible. Do you guys think it will get back to normal?

and how do you save up for a car these days? I am putting most of my income into s&p. Seems like cash is trash now... wonder if things will change once interest rate goes up.

Bxstr

I think it will get back to normal. Some of my friends however think inflation will cause values to stay up.

Ascend

i mean i bought the car.. but i dont want to pay crazy amount for future cars either.

pretty confused on what to do... save up cash? Or just dump all into stocks. I think stock price is related to car prices.

mchrono

If you consider the absolutely tremendous (>40%) increase in the money supply over the past year, its no wonder on that fact alone it now takes more dollars to buy any asset, including cars, stocks, gold, foreign currency, etc, etc. Hard to see how car prices will “get back to normal”. Buy whatever you want to buy before the next $2 trillion gets printed.

Manoverpdk

This.^
Assets will not necessarily go up in value. But more weaker dollars will be needed to make a purchase.

Ascend

Damn only thing that didnt go up is my salary 😂

Bxstr

Regarding the financial question, that more comes down to your risk tolerance.

I guess what I cannot see continuing is the rise of prices. Maybe car values stay where they are for certain ones, go down for others, but as a whole, I think we've seen way too much speculation with people thinking that cars are just going to continue going up in value. The other market that I track closely, watches, are the same way. Stainless Daytona retails at $12k (but you can't get one from an authorized dealer unless you have a history with them). On the Gray Market they're $30k+ for a ceramic stainless Daytona. There is 0 chance that can continue going on in 5 years from now. There will have to be a correction to these luxury goods going forward, at some point. However, I said this when stainless Daytona's were $20k last year and now they went up another $10k.

Too much social media hype too around all of this stuff, at least I think so.

Obviously, I've been wrong before and people way smarter than me will probably have actual numbers and facts to back things up.

Ascend

i get that SS daytona will eventually go down as rolex is printing them... but not the case for 997 cars. I think 992 gt3 will be had at msrp soon...

bonehead

Although the 116500LN is a 'mass produced' watch, scarcity (artificial or not) will probably keep the prices up. And with rumors flying of a new 41mm case, prices now for one of the white dial Daytona's will just be the tip of the iceburg. 992's, however, GT or otherwise, will churn out as fast as they can make them. 991 GT cars are seemingly as common as base models. Those willing to take an almost immediate depreciation hit to be one of the first clearly have more money to burn than me.

noro78

Back to normal can happen a few ways, one of which the prices stagnate as inflation catches up. I think this is the more likely path. I personally attribute the sudden rise in "old school" car prices to the fact that modern cars have become incredibly dull, despite the bull crap commercials telling you how exciting it is to drive whatever garbage being advertised (despite it rolling down the road at 8 miles per hour because god forbid the brand infers any kind of irresponsible driving).

8Lug

I never look at cars as investments because by and large, they are not. I buy my modern classics, like the 997 GT3, the same way I would buy a CD. It represents part of the "cash" position of an overall portfolio. I can be fairly certain it will retain its value and I know it is very liquid. I would never take money out of a real investment and buy a car with it. But If I have 50k, 500k or whatever amount of my portfolio I want to keep in cash, I'd rather use part of that to buy a 911 I can enjoy rather than a CD which brings me no joy.

9872SpeedYellowCS

You should probably speak to your Financial Advisor versus a Porsche forum on how you "should" allocate your money.

goin2drt

Just buy what you like, put it in bubble wrap and don't drive it. Seems like that is what all the cool kids are doing these days.

pissedpuppy

absolutely!

Waxer

You bought a car? There has been no proof buy way of pics. It never happened without pics.

Anyway the current administration seems to think that printing money at full tilt is the answer with irresponsible profligate spending. Inflation will rein supreme for the for the foreseeable future.

Hard assets are my strategy. Before PAG figured out the RSs were money machines and they began pumping them out as fast as they could sell them to cash in their was the 997 and 996 GT cars made in limited numbers as real homlogation specials because they had to make them for FIA/IMSA requirements to compete. PAG was even concerned they could even sell what they produced.

991 GT cars consequently depreciate at a fairly significant rate. There is roughly 20,000 991 GT cars between .1 and .2 . Some exceptions to depreciation like the Touring or R exist though.

While I don’t see cars as investments there are cars that tend to hold value better than others. I look for these. The y don’t need to be initially expensive either. It just needs to have the right qualities. I look for these 3 factors.

Rarity. Produced in limited numbers for a limited time.

Well received and loved by the motoring press.

In high demand at launch by the public.

The first is a requirement. One of the others will do but both are preferred.

It’s worked for me.
Ford GT
2011 RS
987.2 Spyder
2012 Boss LS

Watches. My preference is Rolex. There are other greats such as AP, PP, Vacheron Constantin (The Holy Trinity) but Rolex is my favorite based on retained value and $ required to attain. While not part of the “Holy Trinity” a Rolex is a “Rolex” and stands on its own having its own panache’ and widely recognized as one of the worlds top luxury watches.

For retained value Rolex PP and APs can’t be beat. A.Lange &Sohne is up there for sure too.

Sorry for the rant. 😬