TRAKCAR

I never had a job, so I am ahead of the curve?
I'm lucky to have my dog because I have no idea what you guys are talking about.

perfectlap

as well as supplying ready made customers for the credit card industry.

VegasSpeedy

Do I know anyone who made money selling cars at Monterey. Absolutely. I personally know 3 sellers who made (net after hold costs) over $100k per car they sold. All Porsches. The longest hold time was 3 years. Investments? Yes.

Cars (some cars) like art are an asset class in themselves. I heard the term 'kinetic art' more than once.

Your points about investments=cash flow is certainly valid.

Ones home being a liability is also the truth. Paying off your home is one of the easiest ways to 'make money'. How? Aside from the increased cash flow from not making an interest payment you are no longer paying the interest!

mooty

LMFAO

mooty

absolutely, just not often. i am still learning. if i can make 100k on a car, i think i have found a job i actually like. not poking on you, just speak my heart.


correct, but i referred to this class of assets as art. it's no longer "cars" at least in my definition. car to me should take me from A to B with some excitement and maybe 3-5000 miles a year min.



general theory is right, but it's way too complex in real life.
tax write off
int rate
the true ability to really pay off homes (SF, silicon valley in particular) is not likely. a home under $3MM is just a home. the AFFLUENT mansion here are $15MM above, just to start. so yes, the big tech guys pays them off. but most simply can't.

but i undertand your point. in fact, i think you, clarke and i are in agreement just some terminology difference.

great topic to discuss in the trailer in between track session.

P_collector

interesting discussion here..should be continued after a track event with a beer..for me two things - as already mentioned before - are the key elements:

1. yes, you can earn money on a car..Mclaren F1, F40, 2,7RS..are just perfect examples. If you would have bought a Mclaren F1 7 years ago, there is NO WAY you would have lost money on it..even if you deduct taxes, maintenance whatever. Of course, these cars should not be driven..in order to keep its miles as low as possible. 2.7RS, same story, no way you could have lost money on it since 7 years..impossible. These cars are "investments"..at least for the people who buy them..or most of them..again "portfolio diversification". Investment banks even offer "car funds"..and their return rates are higher than many other funds!!. But all this here applies to a niche market for cars..

2. A normal GT3 is unlikely to be one day in the case 1 I described above, we know that. Here GT3DE´s comments are fully valid..which means there are vaild fpr 99,99% of the cases..unless you bought that 2.7RS 7 years ago, or a Mclaren F1 and just "liquidated" them at Monterey..

Lets enjoy our GT3, GT2s and lets be happy that we are not witnessing depreciation rates of 7 series or other junk..

perfectlap

and a job with a resurgent performance record...beating the pants off wine and violins:

http://www.economist.com/news/financ...nsurate-fruits

^ Which probably means its in a bubble...if you're outperforming the Stradivarius 500 index you know smart money has cashed in already.

Nizer

Yes, but did you make money from hard work and acumen or because the Fed poured unprecedented stimulus into the system? Was that investing or speculating?

TRAKCAR

I'm about to post 100 dog pictures

drl

I'll start...

TRAKCAR

awww

GT3DE

The sellers at the auction -- how much did they lose on the other cars they own? I bet they didn't bring those to the auction because they would have lost money on them.

Paying off your house does not "make money". In fact it costs you money because you forgo the low interest rate that anyone with a brain can beat by INVESTING, as well as forgoing the tax benefit thus reducing your money paid to the government. Paying off your mortgage does not increase your cashflow, it just reduces your OUTFLOW.

911Jetta

In light of all the good advice on these pages, the following needs to be said....

One of the best investments I ever made was buying my 911.

After dreaming about owning one for years, I finally stopped reading magazines about them and got off the couch and bought one, albeit a 964. That was over 6 years ago. I now have over 50,000 Porsche miles under my belt and as I look back over my experiences in that time I have the biggest grin on my face. I've been everywhere with the car, from the mountains to the beach. Kids to school and trips to the grocery store, week after week at that. Also many track days too. I haven't even mentioned all the really nice people I've met along the way too.

I paid $22,000 for the car and have avoided going crazy with $$$mods. It's in top shape and can be driven anywhere and anytime without any worries. Given that market is starting to realize how great these cars are I could probably get close to what I bought it for...

They say time is money, well I've spent lots and lots of time in my car and it has definitely paid me back handsomely!
Since we're on a Porsche forum, I'm pretty sure we all have out bases covered financially and don't have to lean on our cars for any kind of security, but I will say it's been one of the best investments I've ever made.

GT3DE

I agree.

usctrojanGT3

There are instances where buying a home can pay you indirectly (I'm not talking about buying and renting out a home). My real world example is of when I bought a home for my dad in Vegas (where he lives). He was paying $1,400/mo to rent a 1,500sf home. Two years ago I bought him a very comparable 1,900sf home in the same area but nicer and newer with 20% down and the total costs to own turned out to be a hair over $1,000. People need a place to live so either you will pay rent or you will pay to own a property so if you can acquire a property where the cost to own is less than cost to rent it becomes a no-brainer decision.