collector car market

[Gene Cassone]

Has anyone been watching the prices of high end collector cars? Especially 1970s and earlier Ferrari market? I purchased a "barn find" 330 GTS (100 made) years ago, went through a 5 yr total restoration and sold it in 2011 for 100% profit what i had into it. It was becoming to much of a liabilty and would not drive it. It has since gone up another 50% in last 2 years! Prices are over 1988 highs?! Market went up way before economy?? (New indicator?). Any thoughts on why and will it come crashing down again! Last up market fueled by speculators. Not sure it is the same case this time.
Gt prices have enjoyed a healthy slow steady climb and should not really have too much on down side since it really is the only american supercar with limited production run. Besides it really is beautiful!!
Any theories?

 

[stumeat]

For me.....I bought 2 years ago. Honestly saw car as investment that was also fun. Lot more exciting than stocks or CD. Also saw as a way to diversify. And yes....my wife bought it all.

 

[djs]

Chinese $$, Russian (gangster) $$. Global market. I can't get over how some of the F cars have jumped in value, but many of the secondary marques from the 60's, Biazzarini for one, are also trading for monster cash.

 

[RALPHIE]

Or is the dollar ($) just tanking on the world market due to our ever-increasing debt? So, values of internationally sought items rise due to inflation, while the Fed artificially keeps the interest rate effectively at zero at home?

 

[mal]

I had a 246 GTS Dino which I sold in 2009 for 75K Sterling. It would cost me 180K at least to buy the car back today - so no it is not just about the dollar - it is about the lack of places to safely invest and the global market for a limited supply item.

 

[BlackICE]

I had a 246 GTS Dino which I sold in 2009 for 75K Sterling. It would cost me 180K at least to buy the car back today - so no it is not just about the dollar - it is about the lack of places to safely invest and the global market for a limited supply item.

:agree: With all of the central banks printing, few places to hide.

 

[GKW05GT]

For me.....I bought 2 years ago. Honestly saw car as investment that was also fun. Lot more exciting than stocks or CD. Also saw as a way to diversify. And yes....my wife bought it all.

The exact same story and time as my purchase and the wife also bought in. Must be an Atlanta thing.

 

[SBR]

I agree with the posts made. I think another factor to the rise in collector car pricing is from television coverage of auctions and other car related shows. I have been to many auctions and there is definetly a mine is bigger than yours mentality. However, I also think to some, the TV coverage has legitimized car collecting as a viable investment vehicle.

 

[jcthorne]

The exact same story and time as my purchase and the wife also bought in. Must be an Atlanta thing.

Nope, wife on board for same story here in Houston....

 

[GTMikey]

I have three boys and 3 "extra" cars. Two 68 Shelby's and the GT. I stated to the MRS that if I needed to sell them for the kids to go to college I would. They are more fun than a 529B anyway

 

[Gene Cassone]

The question is what is the percent of these buyers ; international or not, that are enthusiasts or just speculators? The last great dive in prices in the early 90s was due to the speculators pulling out!

 

[Xcentric]

Such a tiny percentage of vehicles could be considered investment grade (e.g., a rare combination of technology, art, history, provenance) . A much higher percentage are priced on fashion and demographics (e.g., baby boomers and muscle cars).

The stock market is at new records. People who weathered the recession and didn't buy high/sell low are feeling flush again. Lots of capital for which there is not a better use.

Except, of course, for the peeps who have been predicting runaway inflation for the past five years. One day demand will pick up and they will say, "See...I told you so." In the meantime, the hard asset inflation hedge bubble bursts with a bang.

 

[SBR]

My guess is that the percentage of enthusiasts now is greater than it was in the run up in the late 80s. Another reason why prices tanked in the early 90s was due to the recession at that time. As with any market, there will be peaks and valleys. My 2 cents has always been to buy what you like in case prices do take a tumble.

 

[debtdrives]

I agree! Unfortunately, I like them all...lol. So, I ended up with a 20 car collection and a building to keep them in...lol.

 

[Kayvan]

If you have the Cash buy the Miura...

I watched Gullwings hover around $150-250K for 15 yrs then boom...$500K-750K-$1M

Miuras are the Iconic Supercar

 

[ByeEnzo]

Whole thread on F-chat discussing if we are in a bubble...

http://www.ferrarichat.com/forum/vi...ine-restorations/395802-bubble-due-burst.html

 

[stumeat]

What about Testarossa. A lot of this is driven by boomers who now can afford the car that was on their wall in high school/college. We all had Countach/Testarossa/Ferrari gto. We se what has happened with the Countach, gto. Going out of sight......of course gto never really reachable. could Testarossa be real investment grade in future. One just sold at auction for 290+ but had like 100 miles or so. Basically new condition. I just wish it were prettier..."but yes, I had one on my wall back in the eighties.

 

[Gene Cassone]

Testarossas (from the 1980s) may go up slightly by being dragged up by the rest of the market, but way too much on the down side. They made too many of them. Exspensive to maintain, Butt ugly from the back (pun intended). Rather have a carburated boxer. Pretty car. Reasonable price. Last of the hand made cars.
I owned a Daytona (6000miles on it). Handled like a truck (heavy). real long distance cruiser. But NOTHING sounds like a daytona!!big V12 with 6 downdraft webers. I remember an article polling automotive journalists years ago what car had best exhaust note. Daytona hands down winner. I should of kept it only for the sound! makes your blood boil!!

 

[Gene Cassone]

Read the F-chat. Dinos over $400,000! Crazy. V6 190 hp , 4500 made? Built at the same time as the Boxer coming out(1974) , Boxer was the supercar of the era . You can find a nice one for $150000 or less!! Look at he numbers. Our GTs should have allot on the upside in 20 yrs. (the way they are being totaled should be way less than 4000 left!!)

 

[FBA]

There are a lot less than 4000 left now...probably under 3000 from what I have read. I think the current generation of GT's will be worth a fortune in 20 years. Far more than they are getting now....and while I would hesitate to publish a guess here as to the numbers I have in mind...I'm sure it will be a big number.

I know that since I have purchased mine in the past few years, they have both appreciated faster than some of the real estate I have in my portfolio - and if I look at my investment gains (excluding the real estate portion) in the last 12-18 months, vs the last GT I bought 14 months ago, the GT has shown far more in gains than the rest of my portfolio.

Will they do as well in the long term as they have in the past 24 months? I believe so...