Investing in a Car

Asking this as I genuinely don’t know, buying something like an S2000 (I’ve had two in the past), over the years are you going to be massively better off than just breaking even?

By the time you’ve taxed and insured it, annual servicing, keeping on top of all the bits and bobs they need, it’ll eat into any rise in value of the car.

To ensure it’s a ‘good one’ in future when prices have possibly risen you’ll have had to make sure it’s kept well.

But I guess even with running costs you could come out at 5 to 10 years with the car worth what you’ve put in and you’ve had all the fun along with it.
 
Asking this as I genuinely don’t know, buying something like an S2000 (I’ve had two in the past), over the years are you going to be massively better off than just breaking even?

By the time you’ve taxed and insured it, annual servicing, keeping on top of all the bits and bobs they need, it’ll eat into any rise in value of the car.

To ensure it’s a ‘good one’ in future when prices have possibly risen you’ll have had to make sure it’s kept well.

But I guess even with running costs you could come out at 5 to 10 years with the car worth what you’ve put in and you’ve had all the fun along with it.

Similar thoughts here. I did very well with my S2000 in terms of resale (put a few more miles on than suggested here mind you). If OP is simply wanting to own an exciting car and enjoy depreciation free motoring, then it’s a really good choice, although they’re rapidly inflating in price. Same deal with a boxster S and Elise. No way a TVR with investment potential falls into this price point unless you’re wanting to do serious work on it over time.

I was thinking something like a DB7, but they’re way over budget - I’m sure these dipped well under £20k not so long ago. The alternative would be a Jag XK8/R. It would be a long term prospect, but they’re going up in value and I think they’re ageing really well and a good looking British V8 coupe is surely a winner long term if well looked after. Might be a really long term prospect as they’ve gone up quite a bit in price already.

Quite a selection of Merc SL500’s (and the odd ruinous SL55!). This one caught my eye: https://www.pistonheads.com/buy/lis...0237828&cId=10066477&cId=9946139&cId=10345126
 
You also need somewhere to store it, buying something and using it all the time depreciates it, you need something in good to excellent condition to start with as well. Then it comes to insurance, insurance for 2x of my Escorts with Agreed values of £35k and £25k was £296. My other two are currently on my trade policy. Escorts are Tax Exempt, the other two are SORN. Then its storage, I luckily have space for 5 x Cars in Garages at the moment. But Eventually Ill need to move 2x of them out of my Unit and back to the house so then im into building storage area for them. But to be totally honest its more of a hobby for me as well.

I have a friend who has had a Manta stored in a council owned garage at £30ish per month for the last 10 years.. £3600 on storage alone..!
 
A series land rover will hold your money quite well i'd think.

You want something that isn't going to munch any value it's appreciated in maintenance costs, something like an RX7 will go up in value but could well end up with a big bill in the next 5-10 years wiping it all out. I thought similar with my old Impreza STi, i did well on that car as i had it for 5 years and hardly lost anything but if i kept it it'd need a clutch, cambelt etc and then who knows if it'd need an engine rebuild within 5 years, probably.

You'll also need to store whatever it is in a garage to keep their value long term.
 
I would not invest in car, if you want to go up in value, you will have to keep it mint, no expense spared, just sounds like a money pit, not an investment
 
You said no cars. Many cars will go up in value. The real question is which one.

Also cars don’t have capital gains or inheritance tax so they are pretty good way of realising and moving wealth on if you buy the right ones
 
You said no cars. Many cars will go up in value. The real question is which one.

Also cars don’t have capital gains or inheritance tax so they are pretty good way of realising and moving wealth on if you buy the right ones

Cars are an asset of the deceased's estate. Why wouldn't their value be included for Inheritance Tax purposes?
 
Personally i expect there will be a sweet spot where the majority are going Ev and the remains of the desirable ICE cars are available for collectors/enthusiasts
Then at a certain point getting the fuel will become a real PITA and suddenly only the collectors will want them

There are other gambles as well that will come later, restrictions on where you can use them, eg citys and towns may well ban them
This isn't likely for 20 years or so I would say, but 30, 40 its pretty inevitable at some point

At some point, eventually the normal person will not be able to run an ICE without very significant running costs. garages etc will become specialist. This is some time off but it will come. Youngsters wont train to become mechanics like we think of them they will train to become automotive electricians with a side helping of the basics (brakes, suspension etc)
 
Cars are an asset of the deceased's estate. Why wouldn't their value be included for Inheritance Tax purposes?

Cars are included if you die.
I believe you can get away with transferring cars between individuals with no liability generally although I do suspect if they estate is valuable they may go looking back into recent transfers of all assets if they suspect foul play
 
Cars are included if you die.
I believe you can get away with transferring cars between individuals with no liability generally although I do suspect if they estate is valuable they may go looking back into recent transfers of all assets if they suspect foul play
There is inheritance tax on them but no capital gains. Although I don't think the OP is elderly so doubt they're too worried about that at the moment.
 
I would say that most of the cars mentioned would at best break even on. It’s a good way of enjoying a car and being able to get most/all of your money back once you’ve had your fun. Investment to make money on? I’m not so sure, but with interest rates so low having it sat in a bank isn’t going to do much either...
 
Got an S2000 back in March and I absolutely love it.

Car came from Honda dealership, so years warranty which was a bonus but being a Honda doubt I shall need it. 1 previous owner, they did major service, spark plugs, valve adjustment and had the rocker cover repainted red along with new disc brakes and pads all round, all in was around a grands work and I paid 14k for the car which had 49,000 miles on at time and was a 2008 which was the model year I wanted and feel is the best year to get as it has all the updates and tweaks done over the years but has the more dialled in setup from the earlier cars but without the draw backs.

I paid 14k and if I was to sell it today six months later I would be asking 16-17k based on market prices and even high if I left Ohlins on the car, in the USA similar cars are $25,000 plus if that is anything to go by what is happening over the pond, not saying UK cars will reach similar but you never know.

For me as a fun weekend car it does not get much better, they are bomb proof apart fromo alignment and bushes woes, only a real issue if your alignment is out however and they are easy to work on. Also look out for rust! Name on inside of arches and in the rear and front subframe area.

As a fun car, that is reliable and should not loose any money they are a good bet, I would not recommend one for daily use though, they are capable of it but roof up they lose a lot of their appeal for myself personally.


The other option and a car I am considering adding to the collection is a C3 Corvette as I'd like a classic but one that is not shall we say too classic, for a car of their age they drive remarkably well say compared to Mustang or Dodge of same era and the C3 was a bit unloved, C4 even more so and they have become really good bargains to buy and the prices seem to be strengthening, however they are LHD something to consider and the C3 is a classic car and around 40 years old so you will need to do work on it but they are very easy to work on, advantage of the C4 is its an old car but they are generally very reliable and drive even better. They all have the 5.7 V8 which sounds great, bit slow in the C3 as versions with cats made 170-220HP in a car weighing 1600KG, the C4 bumped the power and dropped weight quite a bit.


I'd not recommend an E60 M5 however as an investment, even if they do go up the amount of fuel you throw in it and the fact it will break and cost you money means any potential profits will be wiped out by running cost.
Good E46 M3 are still on the up!

Problem is most cars on the up have being doing so for 2-3 years now so a lot of increases have happened, the S2000 I paid 14k for, would have being around 10-12k a few years ago, but give it another 5-10 year and its fair to say it will no doubt fetch 20k plus if not too many miles were put on it, none of my cars are investment cars though, they all get driven and used as I buy them to enjoy and nnot for investment reasons.
 
Last edited:
Similar thoughts here. I did very well with my S2000 in terms of resale (put a few more miles on than suggested here mind you). If OP is simply wanting to own an exciting car and enjoy depreciation free motoring, then it’s a really good choice, although they’re rapidly inflating in price. Same deal with a boxster S and Elise. No way a TVR with investment potential falls into this price point unless you’re wanting to do serious work on it over time.

I was thinking something like a DB7, but they’re way over budget - I’m sure these dipped well under £20k not so long ago. The alternative would be a Jag XK8/R. It would be a long term prospect, but they’re going up in value and I think they’re ageing really well and a good looking British V8 coupe is surely a winner long term if well looked after. Might be a really long term prospect as they’ve gone up quite a bit in price already.

Quite a selection of Merc SL500’s (and the odd ruinous SL55!). This one caught my eye: https://www.pistonheads.com/buy/lis...0237828&cId=10066477&cId=9946139&cId=10345126

Good shout on the SL500. They are sure to be a future classic and collectable.

You have probably missed the boat now but you could have got a SL600 with the sublime V12 engine in for £15k a few years ago but doubt you will find a (decent) one for under £25k now,. The same 6L bi turbo V12 as in a Pagini Zonda and reported to be the most reliable engine ever built.
 
Last edited:
Back
Top Bottom