Another Good Reason To Buy Aircooled

[JustJames]

Seems "investing" in classic cars beats pretty much everything else.

So go ahead, buy that aircooled car...it's the only sensible thing to do!

http://www.smh.com.au/executive-style/motors/investors-reap-highoctane-dividends-20130307-2fouw.html

Disclaimer: The above does not constitute professsional advice. Please read the PDS before making any investment decision. The past is not necessarily a guide to the future and vice versa. Ceteris paribus, post hoc ergo propter hoc, habeas corpus, ipso dipso etcetera etcetera.

[Coastr]

The difficulty is knowing what an investment grade vehicle is and what isn't. That's tough but not beyond the savvy Porsche buyer. Anyone who bought a 73Rs has done very well, but that doesn't apply to every SC.

At any rate, classic cars should hold their nominal value, even if they are going backwards in real terms, which is a vast improvement in new or near-new cars, which depreciate in nominal and real terms in a horrific manner.

I thin taking some of the continually diluted paper money and turning it into a real thing like a classic Porsche makes a lot of sense. The problem with inflation is that it doesn't telegraph it's arrival. One day you wake up and prices have doubled. It is the stated aim of every central bank to inflate their currency, which in reverse means that the stated aim of every central bank is to make your saving s worth less every year. I find it horrific but that's where we are at so you have to play the card you ae dealt. That means exchanging paper money for real things, like houses and classic cars.

[JustJames]

Coastr, you raise an interesting point re: central bwankers' stated aims.

As a student of economics, I've always maintained that the most important thing for monetary or fiscal policy is to be predictable. In those terms, a small amount of more-or-less correctly anticpated inflation is a good thing for a lot of reasons. Given that 0% inflation is an impossible target, mild inflation works better than mild deflation.

As to which Porsche to pick for your investment...any sound aircooled car is at least not going to go backwards in financial terms. Cars from a particular era tend to rise in value when the guys who were kids when they hit showrooms reach the point in their lives when they can indulge in nice toys. By that measure, GOOD impact bumper cars will likely follow long bonnet cars' price rise in the next 5-15 years.

The other factor that helps aircooled cars is that even the 993 has minimal electrickery to stand between the driver and the scenery. As all cars have gotten more powerful, faster and more idiot proof over the last 15 years or so, cars that offer an undiluted, full fat, high caffeine, leaded, triple distilled driving experience will be sought after.

[StevepGT3]

Coastr, you raise an interesting point re: central bwankers' stated aims.

As a student of economics, I've always maintained that the most important thing for monetary or fiscal policy is to be predictable. In those terms, a small amount of more-or-less correctly anticpated inflation is a good thing for a lot of reasons. Given that 0% inflation is an impossible target, mild inflation works better than mild deflation.

As to which Porsche to pick for your investment...any sound aircooled car is at least not going to go backwards in financial terms. Cars from a particular era tend to rise in value when the guys who were kids when they hit showrooms reach the point in their lives when they can indulge in nice toys. By that measure, GOOD impact bumper cars will likely follow long bonnet cars' price rise in the next 5-15 years.

The other factor that helps aircooled cars is that even the 993 has minimal electrickery to stand between the driver and the scenery. As all cars have gotten more powerful, faster and more idiot proof over the last 15 years or so, cars that offer an undiluted, full fat, high caffeine, leaded, triple distilled driving experience will be sought after.[/quote

As long as you remember rule number one

It has to look good

[wasserkuhl]

Murky waters here.

 

Personally I'd rather put money into classic porsches over real estate.

 

If though, your prime objective is to make money then perhaps you are smoking something.

 

Buying new, modern cars is ok, if you are self employed and can claim depreciation etc.. on it. Happy Days.

 

The positive thing about a classic Porsche (Where is the line now? 1996?) is that it should only see mild or zero depreciation should you choose to treat it correctly and 'Right' previous owners 'wrongs'.

 

Will my cars appreciate in value? I don't expect so. The 356SC has but I have had that for 15 years, so in comparison against my Superannuation it has performed marginally. If I were to sell I would not realise a loss.

 

Like any investment, it is "Time In" not "Timing".

 

Real Estate has had its day, we wont be seeing massive gains in this arena like we have had over the last 15 years. It is just not sustainable. Stop fooling yourself if you thing Houses and Real Estate are still King. They aren't.

 

So, classic cars as an investment? Possibly. Its better than the TAB, The Pokies or Drugs.

 

Thats all that counts.

 

*Do not try to relate the world market of Porsches to Australia as there are far few buyers here to pay the silly sums of cash that are evident in silly crazy town (USA) and Europe. ie: Would someone in australia pay $250k for a questionable 57 Speedster........

 

Buy a Porsche and smile. Thats all it boils down to. Buy several and smile lots.

[Coastr]

Perhaps we should have a 'what should you invest in apart from a Porsche' thread.  Real Estate means many things other than speculating on houses.  It's always a good time to buy good real estate, as long as 'good' means well located, high yielding properties of whatever form, whether that is house, shed, shop, farm or caravan park.

 

I think my point with classic cars is that you shouldn't lose too much (apart from the maintenance).  They aren't a good investment as compared to a good business or a good property, but they are better than many other things you can spend your money on.

 

JustJames : the issue is that trying to set a mild inflation target is like driving a car with the steering wheel taken off and looking out the back window.   The US, Japan, UK and other major economies are all trying to restart their fires by pouring large amounts of petrol on the smouldering ashes.  It doesn't seem to be taking, but there is a big chance that WHOOF it will all light up and then the blaze is out of control.  That's when you find your impact bumper Porsche just went from 40k to 80k in the space of two years.  Your Porsche didn't really go up, the value of bits of paper fell in half in comparison to real things that people want.   It sounds crazy but it has happened before.  In those cases it is better to own the real things and leave the bank holding the bits of paper.  It could also go the other way, but given the determination of the US Fed to keep giving away money until it works, it seems unlikely.

 

I remember talking to an old timer who used to sell Benzes in the 1970s.  He would sell a 450SL to a dentist, who would drive it for a couple of years.  He would then bring it back to trade on another SL, and get 20% more on the trade than he paid for it.  In the meantime the dentist was claiming tax deductions on the costs and then 'making a profit' on the trade.  He wasn't really making a real profit, but the numbers looked that way.  Crazy times that seem hard to imagine now, but there is nothing different to say we couldn't go through a period like that again.

[Simonk]

I told my friends (toungue in cheek) that I bought my Porsche because its a better investment than property and shares at the moment. There's some truth to it though. A rental property will have you going backwards if its negatively geared because there's no capital appreciation. The share market isn't going anywhere either and it's too volatile. The risk with a car is something major going wrong with it. The value won't change though.

[tazzieman]

Life's about being happy and having fun. You'd be a sad sack not to see it this way.

Shares ain't fun. Rental houses ain't fun. Keep it simple , and if the car costs too much to service , do what your grandad did...autodidactico...

You can never have too many Porsches!

[AndyS]

Agree Tazzie. Two sides to this. Bought a watercooled porsche that has depreciated but not fussed. Been a blast to own (and sold a whole bunch of NAB shares at $41.50 to buy it), happy days. When NAB shares hit $17 post GFC bought another bunch. Now they are $31 guess what I want to do? Kids school fees..... nope...... I want another car. Because cars are fun!!

[withers]

Yeh life is about fun as long as one doesn't over stretch themselves!

 

I'm quickly coming to the conclusion that there will have to be a break between now and the Porsche due to the $ hit I've taken on the SLK.  Plus a broken tooth, few household repairs that have popped up and some other stuff.

 

Time goes quick.. 6 months and I will be ready to go.  In the meantime, learn learn learn.. save save save and err walk walk walk!

 

 

I've only ever lost money on cars thats for sure and quite frankly I'm a bit sick of it.  This latest fiasco has me feeling a bit    with myself!

[tazzieman]

Maybe now's the time to redeem those investment grade watches Amanda 

[withers]

Maybe now's the time to redeem those investment grade watches Amanda 

I am thinking about that Taz