Can you make Money Buying Exotic Cars?
I talked about debt the other day and why I love to use debt to make more money. I even got a loan to buy my 1999 Lamborghini Diablo. Someone commented asking if I was worried about using debt on a depreciating asset. I replied that my cars don't go down in value, they go up.
https://steemit.com/@investfourmore/is-it-better-to-use-cash-or-loans-when-investing-in-real-estate
I bought my Diablo in 2014 for $126,000 and it is worth close to $250,000 now. I have a few other cars that have increased in value as well.
Why did my Diablo jump in value so quickly?
I will be the first to admit I did not expect the car to increase in value so much. I thought I got a great deal, but I did not see the value increasing that much. I actually wrote an article on it when I bought explaining my thought process.
https://investfourmore.com/2014/07/01/able-buy-lamborghini-diablo-real-estate-business/
There have been a number of cars that shot up in value:
-Lamborghini Countach
-Porsche 930
-Aston Martin V8
-Maserati Ghibli
-Ferarri 328
Many other cars have seen huge increases in value. A lot of the cars are from the 1980s and 1990s. Part of the value increase is the kids growing up drooling over those cars (like myself) can afford them now. With increased demand comes higher prices, especially when they only made a few hundred of those cars a year.
Exotic cars also tend to have a predictable depreciation schedule. They often lose a ton of value the first few years, but then level out and in some cases start going back up.
Can you make money with exotic cars?
I would not rely on any car going up in value and they could go down as well. You can get a great deal on cars just like you can with houses. It is possible to buy cars at wholesale prices, drive them for a while and sell for a profit. Many dealers make a living doing this. I personally like to hold on to my cars. I also have a Lotus Esprit V8, a 1986 Porsche 928, a 1991 Mustang 5.0, and I am buying a 1981 Aston Martin next week. I think I got great deals on all these cars and they are worth more than what I bought them for.
https://investfourmore.com/2017/03/13/i-bought-a-lotus-esprit-v8-thanks-to-real-estate/
Be aware that exotics are expensive to repair! While you may not lose money in depreciation, if you drive them a lot you could have costly repairs. I spent $8k repairing the front shocks on my Diablo. It is all still worth it to me!!
There is a really cool program here that teaches people how to get a good deal on exotics.
Very interesting! I would have never thought of making $ in that way.
It is a heck of a lot of fun too
I thought you could make a little money but it's crazy that you can buy a car, park it and make a better return on it than real estate. Wow!
I just saw you had brunch in Denver from one of your posts. I am actually in Greeley CO.
The numbers I got were a 24.6% cap rate! LOL The shocks do bring it down near 20% though. Are you doing real estate just for fun? lol Seems crazy you can get a better cap rate on a car than real estate. Wow! How much of this deal was luck and how much was skill? I think buying a new sportscar is where you generally lose a lot of money or if you buy a used sports car that breaks down you can also lose a lot of money.
Maybe you should do car investing vlogs.
Haha, the problem is I have to sell the car to make that money. I am great at buying, but not so great at selling. I don't think I will ever sell the Diablo. A lot of that was luck, but I also thought those cars were undervalued.
You should have bought 2 to make it easier. lol Apparently your thoughts were dead on. I think when I get some extra cash I will buy a cheap black used truck and the cheapest black G6 convertible I can find.
Hell yeah!
You did good :-P
And that lambo has the footprint of a small humvee lol
But as you know the money is in finding original stock and in mint condition. The value of collectable cars will always go up, even those ugly Russian cars are worth something to someone.
Thank you. The Diablo is the widest car ever built except for the XJ220. It is also one of the lowest. Super fun to drive. Yes, condition is key as fixing up many cars will cost more than buying a good one.
i hope sometime I will be like you :) @investfourmore
i love this car but one thing to consider is how drive it here in Nigeria, because of Bad road
That could be tough!
Most exotic sport cars are gaining in value .
Very good post. You love cars, I also.
Yes quite a few are. They can also go down as well.
I hope not.
All your cars are great, I have a 1981 mustang foxbody, I really like your porsche 928 and the lambo is a work of art
My blog in steemit is about cars because it's my passion and my hobbie is photography ... I'm going to vote for your post, you have good taste for cars
Thank you! I have had my mustang for 15 years. It has 140k miles and 80k of that with the supercharger on it. Never had the heads off the engine!
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