Pontiac GTO Forum banner

1 - 20 of 30 Posts

·
Registered
Joined
·
254 Posts
Discussion Starter #1
Hello everyone. Here's my thinking on how to invest for the future. I currently have an 05 GTO. What I plan on doing is buying the Dodge Challenger, Chevy Camaro and the Trans Am. If they are all produced. I plan on putting them in my car shop/storage building, where they will sit unmolested for 20 years. I will also add any other new muscle cars produced in the next ten years or so. What I'm hoping for is that like there older makes they will go up in value and be highly desired collectibles.
 

·
Registered
Joined
·
1,083 Posts
Doubtful this is a good investment- -

Join a savings plan where you work, and hopefully the employer matches 50-100% of your contribution.
 

·
Super Moderator
Joined
·
8,433 Posts
Generally purchasing vehicles for investment purposes is not a wise decision. If your thought is that these cars will accelerate in value like the "classics" of years gone by is a risky gamble. Just driving them off the lot now you are losing a fortune. You have to wait a long time just break even or to recoup the loss you'll take now. To me, it just does not make sense.

The new cars now a days carry a hefty price tag as compared to the new cars which are now considered classics. Who would have though that cars of that era would be so highly sought after. The prices of those then, compared to the prices of these now makes it IMO cost prohibitive.

I personally cannot see purchasing one let alone 3 or more just to let it sit and not enjoy it. As stated, I'd put money away in 401K's or stocks, you'll make more that way. Who is to say if these cars now will appreciate like the "oldies" did. I'd rather gamble on stocks, or mutual funds in the long term.

I am no expert in this by any means but I do know my investments I have made are doing quite well.
 

·
Registered
Joined
·
26 Posts
If you put the cost of a deluxe muscle car into the stock market in the late 60's you would have more than enough money to buy them today even at the current record prices.

Thanx,
Russ
 

·
Registered
Joined
·
415 Posts
Investment advice

Good sound advice from everyone here for 'Dragon32'...That's why I love this forum! Cars are never your best investment option unless you get some kinda
of rare deal from a grandson selling grandpa's old 69 camaro he found in the garage that he just inherited for $500. In that case, you could make some money on the deal. However, new car purchases, never! Sure would be a nice collection though!
 

·
Super Moderator
Joined
·
8,433 Posts
If I would have known the muscle cars, and classics would have commanded such a following.... I would have kept the ones I had, kept them in shape, sold them, and retired on the profits... So would have everyone else..... Thing is... we didn't know...

Ya can't retire on hindsight.
 

·
Registered
Joined
·
1,083 Posts
GTO judge said:
If I would have known the muscle cars, and classics would have commanded such a following.... I would have kept the ones I had, kept them in shape, sold them, and retired on the profits... So would have everyone else..... Thing is... we didn't know...

Ya can't retire on hindsight.
Yes, that's the problem. Not knowing what is going to appreciate.

I wish I could beam back in time and buy a barnful of SuperBirds and HemiCudas- - -
 

·
Super Moderator
Joined
·
2,640 Posts
If I was you I wouldn't give up. Like everyone is saying, "If they would have known then what they know now", they would have kept or bought muscle cars from the past. So what's to say that preparing for that to happen again is a bad idea? What you can try is when these cars are made available, buy the one with the lowest production number, highest demand, the biggest most powerful engine available, manual trans if available and rarest color combination. Buying 3 may not be wise but buying the one may not be a bad idea. Even if it doesn't appreciate as you think, you'll more than likely get more money than you spent to buy it. Just my thoughts :cheers
 

·
Registered
Joined
·
1,083 Posts
6QTS11OZ said:
If I was you I wouldn't give up. Like everyone is saying, "If they would have known then what they know now", they would have kept or bought muscle cars from the past. So what's to say that preparing for that to happen again is a bad idea? What you can try is when these cars are made available, buy the one with the lowest production number, highest demand, the biggest most powerful engine available, manual trans if available and rarest color combination. Buying 3 may not be wise but buying the one may not be a bad idea. Even if it doesn't appreciate as you think, you'll more than likely get more money than you spent to buy it. Just my thoughts :cheers
Unless you're a doctor, lawyer, or Indian Chief, movie star, or Jay Leno, do not buy new cars as an investment! These folks can shrug off the costs involved; I'm guessing you could not.

Besides the initial cost, you've got insurance costs, storage costs, financing costs- - - etc. etc., and we're talking about 20-40 years of these costs before you could MAYBE see a return on investment.
 

·
Super Moderator
Joined
·
2,640 Posts
noz34me said:
Unless you're a doctor, lawyer, or Indian Chief, movie star, or Jay Leno, do not buy new cars as an investment! These folks can shrug off the costs involved; I'm guessing you could not.

Besides the initial cost, you've got insurance costs, storage costs, financing costs- - - etc. etc., and we're talking about 20-40 years of these costs before you could MAYBE see a return on investment.
The point you're missing is some people can afford to do this. And you're right... I can't and obviously you can't either. That's why I gave advice. If someone states that they want to buy three cars as possible investments then they can surely afford to buy one car without thinking too much about it. If you got the money, do what ever it is you feel you want to do with it. Just be prepared to live with the outcome of your investment decision.

Besides, not even a house is a good investment the way today's market is. So you talk about insurance, storage costs, financing, etc. Say you sold your home after 20 years and you double the original cost of the home. Now deduct the cost for eletricity, gas, phone, upkeep, INTEREST, etc. and what other amenities you required such as cable/satellite. How good does your investment in a house look now? Not so good huh?
 

·
Registered
Joined
·
1,083 Posts
6QTS11OZ said:
The point you're missing is some people can afford to do this. And you're right... I can't and obviously you can't either. That's why I gave advice. If someone states that they want to buy three cars as possible investments then they can surely afford to buy one car without thinking too much about it. If you got the money, do what ever it is you feel you want to do with it. Just be prepared to live with the outcome of your investment decision.

Besides, not even a house is a good investment the way today's market is. So you talk about insurance, storage costs, financing, etc. Say you sold your home after 20 years and you double the original cost of the home. Now deduct the cost for eletricity, gas, phone, upkeep, INTEREST, etc. and what other amenities you required such as cable/satellite. How good does your investment in a house look now? Not so good huh?
Holy cow, I can't believe you're comparing buying a home with buying 3 or more cars! Could be one of the most illogical arguments I've ever read.

There are certain things you must have. A roof over your head, food and water, clothing, and in most cases transportion. The nice thing about buying a home is it's something you HAVE to have anyhow, unless you're living with Mom & Dad. Buying it means that someday you will OWN it, and yes, in most circumstances your home is appreciating in value as you pay for it, unlike CARS!

Making an assumption that any person that writes to this forum has the income to allow purchasing 3 vehicles for investment, instead of saving a portion of their income in a more conventional manner is ludicrous.

I see people writing here frequently asking advice on buying a new car when they may be thousands of $$$$$ upside down on the perfectly fine vehicle they own. Some people say "Yeah, go for it". IMHO that's crazy; just like buying new cars for "investment".

To address your other point, I believe I made mention that people of means can buy whatever they want, and call it whatever they want. The thing is, if they lose on their "investment" it's no big deal to them. I would bet that, to 99% of the people on this forum, it would be a very big deal to lose that much money, and the unlikely but potential 1% of the people that would have that kind of money to spend would NOT be soliciting advice from the rest of us that don't.
 

·
Super Moderator
Joined
·
2,640 Posts
noz34me said:
Holy cow, I can't believe you're comparing buying a home with buying 3 or more cars! Could be one of the most illogical arguments I've ever read.

There are certain things you must have. A roof over your head, food and water, clothing, and in most cases transportion. The nice thing about buying a home is it's something you HAVE to have anyhow, unless you're living with Mom & Dad. Buying it means that someday you will OWN it, and yes, in most circumstances your home is appreciating in value as you pay for it, unlike CARS!

Making an assumption that any person that writes to this forum has the income to allow purchasing 3 vehicles for investment, instead of saving a portion of their income in a more conventional manner is ludicrous.

I see people writing here frequently asking advice on buying a new car when they may be thousands of $$$$$ upside down on the perfectly fine vehicle they own. Some people say "Yeah, go for it". IMHO that's crazy; just like buying new cars for "investment".

To address your other point, I believe I made mention that people of means can buy whatever they want, and call it whatever they want. The thing is, if they lose on their "investment" it's no big deal to them. I would bet that, to 99% of the people on this forum, it would be a very big deal to lose that much money, and the unlikely but potential 1% of the people that would have that kind of money to spend would NOT be soliciting advice from the rest of us that don't.
Look man, I'm not going to get into a pissing match with you. I wasn't comparing cars to a house. I was just making a point about investing and turning a profit. And where in any of my posts did I suggest purchasing 3 cars instead of someone saving a portion of their income in a more conventional manner? Read my posts clearly. I'm going to talk to my 11 year old for a more intelligent conversation. Peace!
 

·
Registered
Joined
·
57 Posts
6QTS11OZ said:
Look man, I'm not going to get into a pissing match with you. I wasn't comparing cars to a house. I was just making a point about investing and turning a profit. And where in any of my posts did I suggest purchasing 3 cars instead of someone saving a portion of their income in a more conventional manner? Read my posts clearly. I'm going to talk to my 11 year old for a more intelligent conversation. Peace!

Guys, first off, how in the hell is anyone on this forum going to know whats going on in the world in 20-30 years. Nobody on here can predict that, and if you think you can, well your an idiot. As far as an investment goes with buying new cars, your not going to get an immediate return on your money, obvioulsy, it would have to be considered a "long term investment" something that only us younger folks can consider doing. Obviously there are betting investment options, stocks, mutual funds, cds, etc. But my philosophy is, if you can afford it and want to do that, then go for it, you only live once! And who said buying a home is not a good investment? Yeah if your buying a trailer house, then yeah, but seriously here in Eastern KS, the housing market has been going through the roof for the last 5 years, with no indication of it slowing down either..
 

·
Registered
Joined
·
10 Posts
6QTS11OZ said:
Besides, not even a house is a good investment the way today's market is. So you talk about insurance, storage costs, financing, etc. Say you sold your home after 20 years and you double the original cost of the home. Now deduct the cost for eletricity, gas, phone, upkeep, INTEREST, etc. and what other amenities you required such as cable/satellite. How good does your investment in a house look now? Not so good huh?
I have to disagree.

Assuming that your options are to either rent or buy, electricity, gas, phone, cable etc are all things that you pay regardless of ownership in your home so they should be dismissed for purposes of comparison.

You may have a point with insurance, but the peace of mind that having a properly insured home provides is well worth the cost to me.

And the interest you pay on your primary (and secondary) home is tax deductible. That is a huge benefit over other investments that limit the investment interest expense you may deduct to the amount of investment income you have.

Finally, the biggest benefit that your home has as an investment that no other investment can match is that (providing you meet the rules) you can exclude up to a $500,000 gain from your income. Capital gains rates are at 15% now, (they used to be much higher) so you are saving a lot of money right there (15% X $500,000 = $75,000 in tax you will never have to pay).
 

·
Registered
Joined
·
1,083 Posts
6QTS11OZ said:
Back to the original question. No matter what anyone thinks, it's your money, do what you want with it... PERIOD!
That's absolutely right. Be as irresponsible as you like, knowing that in your old age, when you have no funds, the rest of us and our children will be happy to pay extra taxes to take care of you.

As an aside, when you finish buying cars, and providing a temperature and humidity controlled storage area to protect your investment, move on to other potentially valuable collectors items, such as new baseball cards, (heck the old ones are worth a fortune, right?)
 
1 - 20 of 30 Posts
Top