EXACTLY

 

Fair point and I fully agree..there will be many who will not become car collectors (simply because many young people dont own a car)..but rare cars: F40, 2.7RS, 4.0 etc will always be regarded as "portfolio diverfisication" for (very) rich people. And this trend has just started..even Russians are now buying 2.7RS...if rich chinese will also go for "porfolio diversification"..then...

 

An investment is supposed to make money.
If you invest in something and do not make money that is bad.
If you invest in something and lose money that is horrible.
Therefore "investing" in a GT3 is horrible.

from WIKI [my edit in brackets]:

"Investment has different meanings in finance and economics.

In economics, investment is the accumulation of newly produced physical entities, such as factories, machinery, houses, and goods inventories [-- all to MAKE MONEY].

In finance, investment is putting money into an asset with the expectation of capital appreciation, dividends, and/or interest earnings [or passive income from rent and/or intellectual property rights]. This may or may not be backed by research and analysis. Most or all forms of investment involve some form of risk, such as investment in equities, property, and even fixed interest securities which are subject, among other things, to inflation risk."

IMO - the above definition is wrong regarding "investing" for capital appreciation. To me, this is gambling, not investing.

 

OK..you cought me..I agree," investing" is somehow not the right word..

Anyway, lets rephrase it to "spending" then....Im happy with my "spening" as it provides fun and enjoyment..and maybe - I repeat maybe - there is a chance that this spending one day gets into "investment"..ah..well, we all need a new definition of investment..

all the best and I hope we didnt confuse him..

 

impossible to say since current value of cars is largely affected by the desireability/production of future cars.

p.s.
I agree with others. People spend way too much time worrying about their car's worth. Few Porsche have even recovered their sticker prices. Once you add in long-term maintenance and repairs it gets worse. And the cars that have been resurgent in asking prices of late, become baseball cards with four wheels and are no longer driven like actual sports cars. It becomes art and no longer sport.

 

This wiki finance author must specialize in understatements or is a bond broker. That's probably the lowest of risks to worry about looking forward.

 

I agree with GT3DE. Car is bought to enjoy. It is almost never an "investment" Sure there are exceptions in the history of limited production cars. I think Porsche still made a lot of 997 GT3s. Look at 996 GT3s. Price has been stuck around 60k +/- few grand for sometime.

Only modern car that I know "jumped" in price in the last couple years as we all know in "similar sports car category": 458, CGT, 4.0RS

I think there are too many 996/997 GT3s in US/ROW.

I think someone mentioned here - 993 price now is lower than MSRP of that car when it was released. Take in factor of maintenance cost/insurance etc - it just depreciated less.. but you lost money/time on it.

Buy the car to have fun and enjoy and experience the machinery of it. I buy things knowing Ill probably lose certain % of it. If i lose more, oh well i was wrong. I usually end up losing money but I tell myself "damn.. that was fun!"

 

collecting high priced cars is not investing. It is merely collecting. Sometimes price goes up, sometimes down. But collecting costs money - maintenance, storage, taxes, etc.
The time value of money - having money tied up in a car plus the costs of ownership - erodes even the best of increased value on the car when you sell. Do a NPV (net present value) of the future sale price of the car, less all the costs and you will still see it was a horrible "investment".
Invest well and from the profits live a lavish life - including expensive luxury cars!

Most people in this world do not understand investing, the difference between investing and speculation (cashflow vs. gambling) or the difference between an asset and a liability (assets pay you, you pay for liabilities).

Buy your assets first and then your liabilities (from the profits).

 

I think the 997 GT3 series cars will be worth the same as the 993 Turbo cars in the future. There are a lot of similarities to the cars and the owners have also often owned both cars. Therefore, my prediction is that the cheapest 997 GT3 will settle at $70k in today's money; adjust for value of money into the future to derive the price 10 years into the future.

Personally, I bought my 2007 new and will never sell it. I'm in China and have the car sitting in Canada, but will not consider selling it. I could put that capital to better use, but life is short, and $70k isn't going to make or break anyone. This car is something special; a lot of cars feel exciting at high speeds and high loads, but somehow the GT3 feels exciting even at 60km/h.

 

So what are the investment worthy Porsches using the strictest of definitions?
1) 1989 911 Speedster.
2) Early Longhood 911 Ses. Specifically, 1967 911 Eses.
3) 1994 Speedsters
4) 1989 911 Turbos and maybe 1974 Turbos
5) 3.8 and 4.0 GT3 RSes.
6) 1973 911 RS
7) 1974 ROW 911 Carreras with the 73s 2.7
8) 993 Turbo S
9) 996 GT3 (probably)

All fit the bill for potentially good long term buy and hold...increase in asset value appreciation type investments. Like ANY investment don't put all your eggs in one basket. None of the traditional investment vehicles (pun intended) have proven bullet proof.

 

^ +1 Amen GT3DE. You put it in perfect wording.

 

any cars, inc things like bug royale are akin to burning money. if your calc shows otherwise, you need a better fin calculator.

all the cars mentioned above are not investments. u will make more simply buy burrying that money in dirt.

 

Mooty...how is that different from ANY other type of 'investment'. The rules have changed. Real estate was once considered a safe investment..is it now?

Tier one collector cars ARE an investment class now. Did you happen to see the sale results from the auctions last week? The guys buying the top level cars are doing so because they see those cars as investments. I am not monetary expert of global economic prognosticator but, chances are the paper currencies are going to take a dump. When they do hard assets will be where the money is...the thinking at Monterey amongst the jet set is that cars (the ones mentioned above, Ferraris etc) will be a great long term store of wealth. Such are the times.

 

yes--thats what I said above.."porfolio diversification"..

GT3 DE is right from a pure and 100% accounting point of view..but what about a house? also costs maintenance....what about eating in expensive restaurants? complete money buring also..for me a GT3 provides more fun.

Yes, a car always costs money..but with a GT3 - at the current situation (991 Pdk GT3 etc) there is a high chance your money spend on it wont be lost completely.

Speculating on certain stocks, certain houses etc is at least as risky..if not more..and can result in "total loss"..- even a crashed GT3 is still worth money..

 

Interesting read!
My view is that unless you are 25 or your car was produced in no more than 100 units, it will not "make money in you life time (if ever).
The best investment you can make is to drive it a lot.
The return is all those wonderful memories you will cherish when you can't drive it anymore because your back hurts too much! :-)