You Got It!
So here are my questions, and I'd sincerely like to hear the responses from the FGT community. Have any of you ever felt this way, and if so, how did you deal with it? For those of you guys who are waiting for the New FGT, what are your thoughts? If you knew that Ford planned to replace it with a newer, faster, better car in 14 months (which I do not think is even remotely on the table) would it change the way you look at it? Hmmm...
Great thoughts on the "merry-go-round" of Supercars. I couldn't agree with you more. I spent most of my career working as a consulting economist, turn-around specialist, so my view of spending money on rapidly depreciating assets always made my stomach churn. I've always been a car guy, but early in my life could never afford anything special. I always bought what I could afford and loved to drive. My first collectible was a 1971 Porsche 911 T. I bought it from a California architect for around $5000 in 1985. I drove it, had a blast with it and cared for the maintenance mostly myself with a little help from a Porsche tech who lived down the road from me. I sold the car in 1989 for $13,000 and considered myself a genius. (Note to self, today those are going for well into the 6-figures!).
Anyway, at that point I discovered that buying a car you liked and which also had the potential to go up in value was the way to go if I intended to buy cars as a hobby. Around 1999 I really wanted to buy a Ferrari. I pretty much wanted any Ferrari, so I plunked down $43,000 for a fly yellow 348ts. It was rough, but I did my magic, drove it for four years and sold it in what was better condition compared to how I found it for around $52,000.
During my time with the 348 I started seriously collecting cars, at first it was just buying stuff that was practical and fun, like a new Porsche Boxter S. As the collection began to grow, I started studying the market and the depreciation curves and vowed to never fall prey to buying the next, greatest "super-whatever" that came on the market. Instead, I decided to patiently wait until the car I wanted fell into the right pricing zone before pulling the trigger. I also established a specific strategy for my collection, which was to focus on modern sports cars that are built in limited quantities, or are limited "hot-rodded" models of their more pedestrian counterparts. (e.g., Lamborghini Gallardo Superleggera, Lamborghini Diablo SV, Ferrari 360 Challenge Stradale, Ford Shelby GT500 KR, etc.)
By focusing on these type of models and seeking good used and some new "under MSRP" examples (after remaining very patient) I have continued to build a collection of what I would not consider to be "Supercars", but very appealing sports cars build in limited numbers. My collection has risen in value to the tune of 20% over the past 10 years, and I continue to buy more as specific makes and models become available at the right price. Each car is relatively simple, easy for my son and I to maintain on our own (for the most part). Our collection went from being a hodge-podge of whatever car we liked at the time to a truly curated collection, that has both intrinsic value as well as emotional value to our whole family and friends who get to enjoy the cars on the road and track.
That brings me to the new FGT. I have one coming later this year, and I believe that this car fits the mold of our collection and will also meet our strategic goal (both financially, and as a fit into the curated focus of the collection). I remember a few important transactions over the last 15 years, some deals I passed on, and others that I purchased that helped teach me the lesson of "being first isn't necessarily being the best". First was the offer from my Ford dealer early in 2005 who had an allocation for a GT. He offered it to me for $100K over MSPR. I told him "NO THANKS!" I also figured I would never have the chance to own a Ford GT given those prices. I waited merely six months and bought a brand new 2005 in the color and options I wanted for $7,000 UNDER MSRP ($107K saved!).
The second was my Gallardo Superleggera, my wife and I almost traded our 2004 Gallardo in on the brand new 2008 SL which stickered at $260K. We waited less than one year, and the first owner who bought that very car drove it for a couple months (700 miles on the odometer), then traded it for the next bigger, better car. I ended up buying it for $155K, over $100K SAVED. I still own the car and is worth closer to $180-$200K now. I believe the new Ford GT will certainly appreciate, and I also believe that while it is technically sophisticated, it will be far easier to maintain than many of the cars currently on the market that employ batteries and electric motors to support the powertrain and prop-up fuel economy figures.
In my mind, the passion of cars and performance are wonderful things, and the hobby of owning and driving these great machines are a joy, but like anything in life, your passion has to be balanced by realism and you have to place some parameters and reigns on what you as a consumer can and will do with your hard earned money. For me, cars (except my truck and daily drivers) have to be thought of as investments with specific strategic goals and metrics for evaluating their worth, the side-benefit is that you get to enjoy the aesthetics of the their beauty and the thrill of driving each one. Be smart!
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