Would You Buy A Supercar As An Investment?
Discussion
Hi,
I put a small investment into a friend’s startup a number of years ago that has now sold and I have received €550k after taxes.
I am trying to decide what to invest the €550k into now, and one idea being a 458 Speciale.
Please note, I already have 3 other small investments in other tech startups, so I would like to diversify my very small investment portfolio to something other than tech startups.
I also have a reasonably good job that enables me to save a considerable amount each month, so thankfully I do not need to use the €550k as disposable income (holidays, cars, etc).
What would you invest €550k into today?
I have listed some options, but I am REALLY keen to hear how others would invest €550k, and how many of you would consider a investing in a car?
A - Property: buy 2 small properties and rent them out (Pro: small monthly earnings on an appreciating asset (long term), Con: I could do without the headaches if managing tenants or overpaying a property manager to do so)
B - Stocks: not really of interest to me, as I believe you need to invest long term to gain and outweigh the inevitable dips over time. I would like to invest into something that has a short to medium gain / return (and I am not interested in crypto stocks… just not for me)
C - Cars: I like many in here, have a significant interest in cars, and have a small collection of cars all which are currently either holding their value or appreciating. I’ve always bought cars as a hobby and not as an investment, albeit trying to buy sensibly… and I think there are a number of cars that will appreciate dramatically over the next 10 years (Ferrari 458 Speciale being one of them)… Pro: big interest in cars so get to enjoy the car as well as investing… Con: no yield on the investment, and breaking the investment vs hobby line)
D - Cafe: I have the opportunity to buy a cafe (inc building) for €400k, that has turned a €160k net profit last year… Pro: good yield… Con: headache finding someone to run it in a time where hospitality staff and next to impossible to find.
As mentioned above, I am really keen to hear how others would invest €550k - thank you.
I put a small investment into a friend’s startup a number of years ago that has now sold and I have received €550k after taxes.
I am trying to decide what to invest the €550k into now, and one idea being a 458 Speciale.
Please note, I already have 3 other small investments in other tech startups, so I would like to diversify my very small investment portfolio to something other than tech startups.
I also have a reasonably good job that enables me to save a considerable amount each month, so thankfully I do not need to use the €550k as disposable income (holidays, cars, etc).
What would you invest €550k into today?
I have listed some options, but I am REALLY keen to hear how others would invest €550k, and how many of you would consider a investing in a car?
A - Property: buy 2 small properties and rent them out (Pro: small monthly earnings on an appreciating asset (long term), Con: I could do without the headaches if managing tenants or overpaying a property manager to do so)
B - Stocks: not really of interest to me, as I believe you need to invest long term to gain and outweigh the inevitable dips over time. I would like to invest into something that has a short to medium gain / return (and I am not interested in crypto stocks… just not for me)
C - Cars: I like many in here, have a significant interest in cars, and have a small collection of cars all which are currently either holding their value or appreciating. I’ve always bought cars as a hobby and not as an investment, albeit trying to buy sensibly… and I think there are a number of cars that will appreciate dramatically over the next 10 years (Ferrari 458 Speciale being one of them)… Pro: big interest in cars so get to enjoy the car as well as investing… Con: no yield on the investment, and breaking the investment vs hobby line)
D - Cafe: I have the opportunity to buy a cafe (inc building) for €400k, that has turned a €160k net profit last year… Pro: good yield… Con: headache finding someone to run it in a time where hospitality staff and next to impossible to find.
As mentioned above, I am really keen to hear how others would invest €550k - thank you.
If I was in your position I’d probably get a standard 458 and have a close look at the cafe or a commercial property. I’ve an interest in 4 commercial properties and they are pretty low key to manage, bearing in mind there can be a greater vacancy risk with commercial.
Not sure there will be much of a short to medium gain on a speciale
Not sure there will be much of a short to medium gain on a speciale
I wouldn't buy a supercar as an invesment - lots of downsides... storage, maintenance, insurance, fairly illiquid asset if you want a good price, and the big elephant i the room is what happens in a decade when a lot of the world starts moving towards EV? Unless it is a real rare collectable, think Bentley Blower, Porsche 959, XJ220, etc etc then a lot of high performance cars are likely to lose their appeal.
However, if you have a dry barn then there are a lot of 'mediocre' cars that could be set for stardom - as the population ages, the 'cool' cars move on. The days of MGs and Morse Jags are declining, real old stuff is falling out of favour as the population lose the ability and inclination to look after them. We've just been through a rush of 1970s cool as those who grew up then have retired and bought their dream Capri, and more ecently the 80s are back - hot hatches, Fast Fords, Mantas, homologation special, and the 80s teenagers get rid of the kids.
So for me it would be 90s cool. A lot have already gove up, but there are a lot there that have room - unmolested Elise, S2000, some of the rarer Audi TTs, early Boxster, Dodge Viper or high end corvette, stretching the timeline a manual V8 R8, DB7/9, Jag XKR, and I think Caymans are yet to be appreciated fully. Alternatively fast Renaults and Ford RS/ST products are excellent value for money. Even 996/7 porsche are becoming more loved.
You can spread the risk, none really mind being stood, cheap to keep in turnkey condition, and you'd probably be able to rent them out to period dramas pretty soon
However, if you have a dry barn then there are a lot of 'mediocre' cars that could be set for stardom - as the population ages, the 'cool' cars move on. The days of MGs and Morse Jags are declining, real old stuff is falling out of favour as the population lose the ability and inclination to look after them. We've just been through a rush of 1970s cool as those who grew up then have retired and bought their dream Capri, and more ecently the 80s are back - hot hatches, Fast Fords, Mantas, homologation special, and the 80s teenagers get rid of the kids.
So for me it would be 90s cool. A lot have already gove up, but there are a lot there that have room - unmolested Elise, S2000, some of the rarer Audi TTs, early Boxster, Dodge Viper or high end corvette, stretching the timeline a manual V8 R8, DB7/9, Jag XKR, and I think Caymans are yet to be appreciated fully. Alternatively fast Renaults and Ford RS/ST products are excellent value for money. Even 996/7 porsche are becoming more loved.
You can spread the risk, none really mind being stood, cheap to keep in turnkey condition, and you'd probably be able to rent them out to period dramas pretty soon
Can't see much upside in Speciales atm they have risen dramatically although their relative rarity should serve to maintain these high prices long term.
More upside in the relatively undervalued and cheaper but far newer Pista imo which should do quite well over time as they age.
In terms of stocks your best investment bet is a low cost global tracker over the medium to long term.
More upside in the relatively undervalued and cheaper but far newer Pista imo which should do quite well over time as they age.
In terms of stocks your best investment bet is a low cost global tracker over the medium to long term.
TurboTerrific9 said:
Sounds to me at EUR400k earning EUR160k per year is either a no brainer or too good to be true.
That’s what I thought too - I’d jump at that Buy the car with the proceeds after a few years
If you want to buy a car - I think the Scuderia is undervalued - much rarer than the Speciale
Unfortunately just had to sell mine - so not sticking to my own belief here. I prefer to drive the GT3RS and one had to go (at least temporarily)
Another car I think is really undervalued is the 550 Barchetta - that will be a 7-digit car at some point IMO
No. There are very few guarantees that a car will appreciate and too great a risk that using it will depreciate it. If you're a successful angel investor perhaps you have the knack for spotting talent and could reinvest that capital back that way. Otherwise, there are wealth managers who will happily take their cut to invest in the markets. As others have said though, the cafe looks like a great ROI if you can manage that business.
Alexandra said:
No. There are very few guarantees that a car will appreciate and too great a risk that using it will depreciate it. If you're a successful angel investor perhaps you have the knack for spotting talent and could reinvest that capital back that way. Otherwise, there are wealth managers who will happily take their cut to invest in the markets. As others have said though, the cafe looks like a great ROI if you can manage that business.
That cafe does sound too good to be true - either very underpriced or there's some hidden problem waiting in the wings.Agree about predicting car prices being hit and miss, they've been soaring in price for years, so bounf=d to be a correction in the wings. But the same has been said about house prices for years as well.
But whatever you do, steer clear of any Wealth Manager who hasn't averaged over 10% pa after fees for the last decade, as they'll have underperformed a low fee Vanguard tracker. Which I'm pretty sure is all of them
ex-devonpaul said:
That cafe does sound too good to be true - either very underpriced or there's some hidden problem waiting in the wings.
Agree about predicting car prices being hit and miss, they've been soaring in price for years, so bounf=d to be a correction in the wings. But the same has been said about house prices for years as well.
But whatever you do, steer clear of any Wealth Manager who hasn't averaged over 10% pa after fees for the last decade, as they'll have underperformed a low fee Vanguard tracker. Which I'm pretty sure is all of them
Slightly off topic, but do Wealth Managers have to show you their performance to date when you engage with them for new business? Fees seem to be really high for some I have looked up but if they can evidence that they have returned 10% net after all fees and underlying fund fees then seems like a good bet. Sorry new to this wealth manager stuff so interested to learn more. Agree about predicting car prices being hit and miss, they've been soaring in price for years, so bounf=d to be a correction in the wings. But the same has been said about house prices for years as well.
But whatever you do, steer clear of any Wealth Manager who hasn't averaged over 10% pa after fees for the last decade, as they'll have underperformed a low fee Vanguard tracker. Which I'm pretty sure is all of them
Would I by a 458 Speciale?
100%, yes!
As an investment?
No.
At current market prices, if you actually want or plan to use the car with all the numerous running costs combined in the short to mid term you won't make any money, you might actually lose money depending on how you use it and how/when you sell.
Better yet, get a nice standard 458 and an F12. Then you have the best of V8/V12 and can feel a lot more comfortable driving either as neither are rare and no where near as miles sensitive and are a lot more usable in other ways also.
100%, yes!
As an investment?
No.
At current market prices, if you actually want or plan to use the car with all the numerous running costs combined in the short to mid term you won't make any money, you might actually lose money depending on how you use it and how/when you sell.
Better yet, get a nice standard 458 and an F12. Then you have the best of V8/V12 and can feel a lot more comfortable driving either as neither are rare and no where near as miles sensitive and are a lot more usable in other ways also.
I would not buy a car as an investment.
- It just goes against my religion. Hurts to know a masterpiece has 6 miles on the clock and has never been used for its intended purpose: generating adrenaline and smiles
- I probably would gamble wrong and choose a car that does not appreciate
- the barn would burn down or rats would eat the interior of my precious car
So the alternatives.
the cafe, does sound too good to be true. Why would the current owner not just get somebody to run it and pocket the annual profit vs a single lump sum of 400k? (There may be a good answer to this, am just curious)
Are you looking to spend the money on something that you hope will become a new hobby or passion? Unless running a cafe or being a landlord is something that you’re interested in, I would not do it. It would just take up precious time that you could be spending on doing the things that you actually enjoy.
I would just drop it into a number of index trackers.
- It just goes against my religion. Hurts to know a masterpiece has 6 miles on the clock and has never been used for its intended purpose: generating adrenaline and smiles
- I probably would gamble wrong and choose a car that does not appreciate
- the barn would burn down or rats would eat the interior of my precious car
So the alternatives.
the cafe, does sound too good to be true. Why would the current owner not just get somebody to run it and pocket the annual profit vs a single lump sum of 400k? (There may be a good answer to this, am just curious)
Are you looking to spend the money on something that you hope will become a new hobby or passion? Unless running a cafe or being a landlord is something that you’re interested in, I would not do it. It would just take up precious time that you could be spending on doing the things that you actually enjoy.
I would just drop it into a number of index trackers.
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