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Investing in exotic cars

jeandearme

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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?
 
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MaxMax

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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 Think it can be lucrative and a safe investment. I would also recommend to buy a classic car. Some models are popular. In europe for example the citroen 2cv, vw beetle, mercedes coupes and so on. Here you have to have a closer look on the condition. During the current crisis you make a good deal.
 

dmetts

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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.
Hope this helps...I just kind of did a brain dump for about 15 minutes.

Feel free to contact me if you have questions or want to talk more about cars.

Don
 

jeandearme

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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.
Hope this helps...I just kind of did a brain dump for about 15 minutes.

Feel free to contact me if you have questions or want to talk more about cars.

Don

Phew, that was intense! I love that answer - and I adore how you have all your businesses around car industry. Car storage facility...OMG! I think I found my new idol :D Being paid for getting to drive all these beauties... I'm literally smiling while writing this post :D Can I ask how did you get into this business?

I have a 2005 Celica T-Sport which I hope will become youngtimer soon (kidding, but who knows - it has evergreen classic lines), but I don't think I will sell it ever.

Back to investing: I think that if I'll wait two, three months prices will drop. For sure I won't be looking for something more than $100k, but financed if possible. Or should I wait and only invest cash - never finance investments like this?
 
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Alleghenyman

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As a gear head I feel qualified to discuss this subject :)

if you’re looking for big returns on classic cars it’s really like any other investment - you have to time the market and know what’s popular, and the big fish rule the pond. It’s not likely to happen with something you’re buying cheap and repairing.

What I think is more viable is importing cars to the USA that are somewhat common on their home markets and cult items in the USA.


Phew, that was intense! I love that answer - and I adore how you have all your businesses around car industry. Car storage facility...OMG! I think I found my new idol :D Being paid for getting to drive all these beauties... I'm literally smiling while writing this post :D Can I ask how did you get into this business?

I have a 2005 Celica T-Sport which I hope will become youngtimer soon (kidding, but who knows - it has evergreen classic lines), but I don't think I will sell it ever.

Back to investing: I think
Phew, that was intense! I love that answer - and I adore how you have all your businesses around car industry. Car storage facility...OMG! I think I found my new idol :D Being paid for getting to drive all these beauties... I'm literally smiling while writing this post :D Can I ask how did you get into this business?

I have a 2005 Celica T-Sport which I hope will become youngtimer soon (kidding, but who knows - it has evergreen classic lines), but I don't think I will sell it ever.

Back to investing: I think that if I'll wait two, three months prices will drop. For sure I won't be looking for something more than $100k, but financed if possible. Or should I wait and only invest cash - never finance investments like this?
Phew, that was intense! I love that answer - and I adore how you have all your businesses around car industry. Car storage facility...OMG! I think I found my new idol :D Being paid for getting to drive all these beauties... I'm literally smiling while writing this post :D Can I ask how did you get into this business?

I have a 2005 Celica T-Sport which I hope will become youngtimer soon (kidding, but who knows - it has evergreen classic lines), but I don't think I will sell it ever.

Back to investing: I think that if I'll wait two, three months prices will drop. For sure I won't be looking for something more than $100k, but financed if possible. Or should I wait and only invest cash - never finance investments like this?

that if I'll wait two, three months prices will drop. For sure I won't be looking for something more than $100k, but financed if possible. Or should I wait and only invest cash - never finance investments like this?
 

dmetts

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Feb 21, 2017
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Atlanta
Phew, that was intense! I love that answer - and I adore how you have all your businesses around car industry. Car storage facility...OMG! I think I found my new idol :D Being paid for getting to drive all these beauties... I'm literally smiling while writing this post :D Can I ask how did you get into this business?

I have a 2005 Celica T-Sport which I hope will become youngtimer soon (kidding, but who knows - it has evergreen classic lines), but I don't think I will sell it ever.

Back to investing: I think that if I'll wait two, three months prices will drop. For sure I won't be looking for something more than $100k, but financed if possible. Or should I wait and only invest cash - never finance investments like this?
I got into car storage as a pivot to my original business plan. I originally opened a 'car club' where members would buy points to be used in driving exotic cars. Lowest buy in was $5k a year, most members did about $15k. I had a decent fleet for 2009 (Ferrari F430, Porsche Turbo, Aston Martin DB9, Ford GT, and a Laborgihini Gallardo). It was an OK business, but too much stress about members wrecking cars, cars getting stolen or just maintenance costs. I has some extra warehouse space and a few members asked to store their extra cars...threw up a web page and 10 years later over 100 cars in storage. I work about 6 hours a week on it, most of that spent billing.

As for investing...yes, I think the market is correcting, has been for about 10 months. I don't think it's done, so be careful. If I was invensting, say 100K, I would get 4 or 5 cars. Get them in condition 2 or 3 (2 being excellent [1 is perfect] 3 being a daily driver). With some detailing and minor expese you could clean them up quite a bit, then resell via ebay or craigslist (cheap!). Use escrow.com to handle the transactions, i've used them before, very good and it protects you.

Check out sports car market magazine, you'll learn tons there.

More questions?

Good luck.
 

jeandearme

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May 2, 2011
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As a gear head I feel qualified to discuss this subject :)

if you’re looking for big returns on classic cars it’s really like any other investment - you have to time the market and know what’s popular, and the big fish rule the pond. It’s not likely to happen with something you’re buying cheap and repairing.

What I think is more viable is importing cars to the USA that are somewhat common on their home markets and cult items in the USA.

Yes, timing the market is the big thing. The question is how to get a feel for market? I search for various cars on car listings, but I don't feel like I have enough gauge to say I'm informed enough.

I got into car storage as a pivot to my original business plan. I originally opened a 'car club' where members would buy points to be used in driving exotic cars. Lowest buy in was $5k a year, most members did about $15k. I had a decent fleet for 2009 (Ferrari F430, Porsche Turbo, Aston Martin DB9, Ford GT, and a Laborgihini Gallardo). It was an OK business, but too much stress about members wrecking cars, cars getting stolen or just maintenance costs. I has some extra warehouse space and a few members asked to store their extra cars...threw up a web page and 10 years later over 100 cars in storage. I work about 6 hours a week on it, most of that spent billing.

And what about responsibilities - like if car would get stolen or roof would fall down? Are there any special insurances for that or it's within normal building insurance? 100 cars in storage are no joke.

As for investing...yes, I think the market is correcting, has been for about 10 months. I don't think it's done, so be careful. If I was invensting, say 100K, I would get 4 or 5 cars. Get them in condition 2 or 3 (2 being excellent [1 is perfect] 3 being a daily driver). With some detailing and minor expese you could clean them up quite a bit, then resell via ebay or craigslist (cheap!). Use escrow.com to handle the transactions, i've used them before, very good and it protects you.

More golden nuggets here!

Check out sports car market magazine, you'll learn tons there.

I actually have a question regarding gathering market data. What I did up until now is watching sports cars channels on youtube like:
  • Carfection
  • Seen Through Glass (he just started a series 'Time To Buy?' which led me to calling Aston Martin and got to know they offer warranty up for 17(!) years - but that's off the topic)
  • Salomondrin (this guy move his inventory quite a lot and all cars are his)
  • VINwiki (recently I watch them a lot)
But I feel like I don't actually grasp the market. You mentioned sports car market magazine (I think it's this one: Sports Car Market magazine ) which I will dive into shortly - any other sources that are good to put head into?

And thank you for sharing your knowledge :)
 
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dmetts

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Feb 21, 2017
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Yes, timing the market is the big thing. The question is how to get a feel for market? I search for various cars on car listings, but I don't feel like I have enough gauge to say I'm informed enough.



And what about responsibilities - like if car would get stolen or roof would fall down? Are there any special insurances for that or it's within normal building insurance? 100 cars in storage are no joke.



More golden nuggets here!



I actually have a question regarding gathering market data. What I did up until now is watching sports cars channels on youtube like:
  • Carfection
  • Seen Through Glass (he just started a series 'Time To Buy?' which led me to calling Aston Martin and got to know they offer warranty up for 17(!) years - but that's off the topic)
  • Salomondrin (this guy move his inventory quite a lot and all cars are his)
  • VINwiki (recently I watch them a lot)
But I feel like I don't actually grasp the market. You mentioned sports car market magazine (I think it's this one: Sports Car Market magazine ) which I will dive into shortly - any other sources that are good to put head into?

And thank you for sharing your knowledge :)

Your welcome. This is what this place is here for.

As for insuring 100+ cars, simple, I don't. The own is responsible to keep their insurance in place or sign a waiver. We do take security very seriously, multiple layers (won't get into that...sorry).

VINwiki is decent. I've know Ed for about 10 years. Check out Chasing Classic Cars on the Motor Trend channel on TV if you have access (hosted by Wayne Carrini). Also check out the web site Bring a Trailer.

Also, when you get focused on a few models search for a forum for that make and model, just read the posts, you'll learn a ton.

Couple more things. Look for local car shows and possibly get a job (any job) at a car dealer, detailer, repair shop around the makes you like. Get to know the people in the industry, that way you'll know where to go for the best prices.

Good luck.
 

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