I haven't found such topic here yet. So recession is here. People expect inflation to hit so having to much cash at hand might not be such a good idea. I had a talk today about current situation and of course real estate was the first thing that came up to mind. But from what I see there are people that invest in exotic cars and they seem to do good on it.
Anyone here does that? What are your thought on it?
I haven't found such topic here yet. So recession is here. People expect inflation to hit so having to much cash at hand might not be such a good idea. I had a talk today about current situation and of course real estate was the first thing that came up to mind. But from what I see there are people that invest in exotic cars and they seem to do good on it.
Anyone here does that? What are your thought on it?
I have thought about and dabble a bit. I currently own a 2005 Ford GT and a 1970 Ford E100 Club Wagon. Two very different vehicles, but, both with good potential.
Right now I own a car storage facility in Atlanta...best job ever! Great cash flow and few problems. I just get to drive other peoples cars and never deal with their problems, just provide them a parking place. I also have a software company that provides car repair shops with management software.
The first question is, do you want to invest in modern cars or classic:
Modern cars are going to take a bit more capital as many cost over $1m, easily. This Ferrari La Ferrari, Mclaren P1, Porsche 918, new Ford GT, etc.. I see two main avenues for making money with modern cars. First, get access to purchase the newest and latest limited model then sit on it - don't drive it just wait for the right time to sell. You can, if you have the right connections or luck, just purchase the option to buy, then sell that at some point - never taking delivery of the car (key here is being able to buy the car). Second, you can buy damaged modern cars and repair them (wrecked, stolen, repossessed, flooded, etc...), access to this market will be easier, but also comes with a high capital requirement. You will also need access to some talented repair facilities. Note: you'll never get full value on a reconditioned vehicle, but still room to make money. There should be some salvage web sites that you can look for candidate cars.
Classic cars have a lot more opportunities. BUT...there is a lot to know, but, there is a lot of information out there to learn from. Few things to think about with classics:
- What era of car. Stay away from anything older than 1965/1970 unless they are special cars (Ferrari's, Porsche, Duesenberg, some Mercedes's, and other lesser known makes), especially American. The hot cars now are the cars that were in production about 45 to 25 years ago - people want to buy the car that was in the poster on their wall when they were 12. That's why fifties cars are losing money and muscle cars will be soon. Japaneses cars will be going up, think Supra's and RX7s...
- You want to restore or just trade. If looking to restore, avoid rust, expensive to fix.
- Where to buy? Auctions (have higher premiums but there are deals to be found), Craigslist, eBay
- Don't forget about other expenses (transportation, insurance, storage)
- It's easier to buy than to sell. You never get what you think a car is worth when you sell -- you always feel like you're over paying when you buy.
Feel free to contact me if you have questions or want to talk more about cars.
Don