It makes no sense to me.

I see people buying 911s, like the S/T, or the GT3RS, or any of the upper-trim, relatively limited quantity cars, and sitting on them, garaging them, trying desperately not to put miles on them.

Treating cars as an investment.

Why? If you're trying to make money through investment, why on earth would you use automobiles as your investment vehicle (put not intended) rather than something that is almost guaranteed to give you a better return on your investment like the stock market, or real estate, or fine art?

If you're buying a 911 S/T and not driving it, maybe putting 100-500 miles on the car, sitting on it for a year, or two years, or however long, and then selling it- even for a profit - you could have easily just taken that same chunk of money and invested in the stock market and made far more money in 2-3 years.

Why bother with sports cars if you're not actually driving them? They're not good investments.

Even a car like the Carrera GT, after 20 years, despite its appreciation, is a poor investment compared to the stock market, which, if you had invested in it 20 years ago, would have brought you much greater returns than the CGT, even with a conservative portfolio.

 

I agree with you, but can't answer why. Most likely, there is some degree of pleasure for them in ownership without use. People also do it with fine wine, whiskey, and watches. And probably lots of other things I'm not aware of.

It strikes me as a shame to see these things not being enjoyed as intended. And it lowers availability and increases prices for true enthusiasts. And most of these things aren't as good a long term investment as a standard balanced portfolio. But a portfolio is just blinking pixels on a screen and not as enjoyable as a CGT or 918 in the garage, I guess, even if those blinking pixels generate more wealth.

In any event, not much we can do about it.

 

Because since the pandemic, you can make a quick $50-$100k plus plus plus on a GT or special edition car….good strategy for investments is being diversified and this buyer also probably making money on their other more traditional investments - stock market, real estate, etc…

 

If you love showing off your low mileage unicorn car at a car show, and can also make money… of course, if some uninsured person hits you on the way home from the car show, I’m not sure these people consider those things.

 

It's not a true investment for the purposes of generating the most wealth. More so, relative to it's peers in the aspiration car segments. I love my stock, but I cannot drive it. A Porsche would be generally easier to maintain than a Ferrari and in turn also reflects on the overall cost of ownership. At the same time, it's a feedback loop for people who want to have some fun and then sell the car later contributing to that overall ownership cost That's much easier to rationalize when you can get most of your money back versus losing tons of value almost immediately if you had bought an Aston Martin or McLaren instead.

 

People like to appear financially savvy. Brag about buying, enjoying then selling for more than the purchase price. I’d like that too but would keep it to myself. Or in the case of electric cars, telling folks they dumped theirs before the price collapse on used values. If I believed these were nominal experiences compared to my history, I would stop buying Porsches.

(I’m guilty too.)

 

Why do people buy sports cards and sit on them and collect them in plastic?

Something to do once you have a bit of money is my guess. The guys with real money and brains drive their cars and enjoy them, realizing life is short and could end at any time.

 

I bought mine to plough about off road and to put the dog in, certainly not as an investment

 

It's not as if a wealthy person has their funds in one place. A well bought can be enjoyed a lot more that a monthly brokerage statement, even if you mostly just admire it in your garage or limit it to your local C&C.

 

If they are buying them as investments.....a wild guess is that like every other investment..... it is to make money.....to get a return ROI......imo there are better investments that have more liquidity that pay interest or dividends and that do not require, sales taxes. licenses, insurance, storage, maintenance or repair....

 

I think a lot of people hope Porsches hold value, but most buyers I know are in it for the way the cars make you feel.
Sure, values on some models have been strong lately, but I’ve always bought mine because I genuinely enjoy driving it — not because I expect it to appreciate like an art piece. If you buy a Porsche you actually want to use and enjoy, you’re already winning regardless of what the market does.

 

Completely agree, and if it holds it value better than the average car so much the better.

 

I have never understood why folks care about what other folks choose to do with their money.

 

I don't think they buy it as an investment piece necessarily.

It's more that once you reach a certain level of wealth, you have money to buy all kinds of things and just let them sit. Sometimes, we wonder how they're so smart and knew XYZ was going to appreciate. The reality is that they just weren't in a rush and can just wait things out to see what happens. A lot of irons in the fire so to speak.

 

This.

When you scratch and claw your way to enormous wealth and financial security, it doesn't really matter what you buy or if you use what you buy. You buy whatever the hell you want, and explain yourself to no one. It's not for anyone else to understand.