fucking 29$ today balls
another squeeze? i cant put myself through this again!
Funny story time here…financial market related…
My GF and I just bought a 1979 Trans Am from a fairly famous local guy. He gives me the address and I recognized it from delivering there years ago. He has a few classics outside and when we go inside, it’s like a car guys wet dream. Literally 30-40 classics in the main area where the TA was. After looking it over he asks if we want to see the others. We say sure, and he shows us the next room. There’s another 50+ cars in there. All cool stuff, a little bit of an oddball collection. 3-wheeled cars, classic Mini’s, to 60’s/70’s station wagons, etc. He says he has another building with about 50 more cars. So then we start talking about investing in cars versus a 401k. He drops this cool line that I’ve shared. He says:
“You can wake up one day and lose thousands of dollar from your 401k, but I don’t wake up one day and lose a row of cars.”
I thought it was pretty funny. But anyways, we bought a 1973 Mach 1 last fall and paid $19,900 for it. I had to pay NYS tax on it and we put about $1g into it. We are all-in at about $24k give or take. It’s insured right now for $30k, and it will likely be worth $35k-$40k within the next 3-4 years. The TA we just got for $16k and it is worth significantly more due to its rarity. We pick it up either tomorrow or early next week.
Why aren’t more of you guys investing in good old American iron?
Ehhh… Tell that to this guy…
What did he have them insured for? I bet he had them insured for 20 times what he paid for them.
the car goes up in value but the costs of properly insuring and maintaining them usually negate the gains.
i sold 240’s that would be worth 2x - 3x now but looking back it would have still cost more to keep them around.
you do get the added benefit of being able to drive and enjoy them though, which is important.
where i can see this making sense is on premium SUV or trucks right now with decent financing terms. my bro was thinking of selling this 2019 Range Rover until i reminded him that the monthly payment is simply going on the balance sheet in the asset category since the vehicles are not losing value.
on a related note, Honda has told their dealerships in Canada to expect a 30% decrease in production/inventory permenantly. others are doing likewise.
our overall auto sales in Canada are down 25% from 2019 numbers. 200,000 sold in 2019 vs. an expected 140,000 or so this year… wild.
I disagree on the cost to insure and maintain negates the gains. Not from what we’ve seen or experienced. You have to also factor in some sort of enjoyment, which you did mention. We insure our stuff through Hagerty and it’s typically $200-ish a year. Her IROC-Z was $4200 back in 2016. We put a Magnaflow cat-back on it and a bunch of dress up stuff on it. Probably have $1000 in parts into it. So 6 years and maybe $7k total (parts+ insurance). I’m positive we could sell it for $14-$15k. Decent return on our investment. The Mach 1 is going up as well, and I’m likely not going to put another dime into it. Just gas and an oil change or 2.
She just bought a 1979 Trans Am Y84 car. We didn’t know it was a legit Y84 car until we were sitting down doing the payment. It’s basically a Bandit car and is highly sought after. She paid $16k for it. We got it home today. Go look at what an excellent one can fetch. They routinely hit $100k when done right. This one will go up in value every time I turn a wrench on it. I could probably take it to a Pontiac meet and sell it today for $25k.
Buying cars at a good price and flipping them is always a good idea, dealers do it daily. Buying a classic right and allowing it to gain value is also a solid bet. Kicker is, tossing your money in an sp500 index will over time always net you good money. Cars are a roll of the dice in what makes money vs what doesn’t.
I’ve been around cars my whole life. It’s super easy to spot something that will net some future gains quickly. Anything 80’s is red-hot right now. Monte Carlo SS, jackpot if you can get an Aerocoupe, any IROC, specifically the rarer colors. etc. You can find them occasionally for under $10k, insure them for $200/year at $18k appraisal value. Drive and enjoy. Fix little things, drive it some more. Put some elbow grease and buff the paint, and flip when you’re done.
Yeah, but I mean REALLY make money… I paid ~$30K for my viper 10 years ago and its worth at least 80-90K now… I really wish I would have snagged a gen 5 viper. I missed a TA2 for $72K I’ve been kicking myself for not buying…
Honestly right now, I think clean Evo/Sti ship has sailed. Find the cars everyone loves and beats up, then save one.
My clean E36 M3/4/5 is worth a mint now too, I wish I kept my Dinan stage 3 coupe.
i dont mind that my 2020 BMW M2C now has 60,000kms and is worth the same that i paid for it almost 2 years ago 
roll it into something else soon or just go grab something similar on top of it since it isn’t likely to lose much value over the next 2 years either.
Wait until the fed reserve reads this…
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Money that expires. That is wild.
With the current rate of inflation all of our money is expiring too.
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relax bro, it’s going to be so much worse later
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USD just gained 10% on the CAD in the last 3 weeks… gaaaay
Time to go to eaton centre
Damn 1.37
up 50 BPS today to 4.5%… what does that translate into for the average retail mortgage down there?
*edit… quick googling shows a national US average of 6.5% on a 30 year fixed.
We’re up to 6.2% on a 5 year fixed and we’re one rate hike behind you kiddos.
Fed guides to 5.1% terminal rate, so at least 1 and maybe 2 more hikes coming…
If i had to bet, the fed rates will peak above 5% for sure in Q1/Q2.
the rates have to get above CPI, which while it just ticked 7.1% isnt’t going to get under 5% with these rates.
Plenty of online savings now paying 4%
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