Cars as Investments

David Fermani

David Fermani

Forza Auto Salon
I’m considering cashing out on a few existing investments and purchasing a collector car(s) for future investment purposes. I’ve narrowed it down to a certain era of cars(~80’s-90’s) that will hopefully appreciate someday to a respectable amount. With how bad the stock market is these days, I’ve kicked this idea around with a few successful people in the investment industry and they have all had positive things to say. I’m wondering what some of you think about the cars below and which ones in your opinion will be worth the most several decades from now. I would only purchase low mileage (less than 20,000), all original (no modifications or body repairs), clean vehicles that have clear title histories. They will not be driven and will be stored in a temperature controlled building. The max I’m willing to spend is $20,000 for one or a combination.



1987 Buick Grand National (20,193 produced)

1989 Pontiac Turbo Trans Am (1555 produced

1993 Mustang SVT Cobra (4993 produced)

1986 Dodge Omni GLH-S Shelby (500 produced)

1987 Dodge Charger GLH-S Shelby (1000 produced)

1991 GMC Syclone (2995 produced)

1990 Chevrolet Corvette ZR-1 (3049 produced)



Honorable Mentions:

2004 Mustang SVT Cobra (5664 produced)

1979-86 Mercury Capri (very low #’s)

1979 Mustang Notchback/Coupe/Sedan

1987-90 ASC McLaren Convertible

1993/1995/2000 Mustang Cobra R (higher mileage only)

1996 Chevrolet Corvette Grand Sport (1000 produced)

1999-04 Ford SVT Lightning
 
David Fermani said:


1987 Buick Grand National (20,193 produced)

1989 Pontiac Turbo Trans Am (1555 produced

1993 Mustang SVT Cobra (4993 produced)

1986 Dodge Omni GLH-S Shelby (500 produced)

1987 Dodge Charger GLH-S Shelby (1000 produced)

1991 GMC Syclone (2995 produced)

1990 Chevrolet Corvette ZR-1 (3049 produced)



Honorable Mentions:

2004 Mustang SVT Cobra (5664 produced)

1979-86 Mercury Capri (very low #’s)

1979 Mustang Notchback/Coupe/Sedan

1987-90 ASC McLaren Convertible

1993/1995/2000 Mustang Cobra R (higher mileage only)

1996 Chevrolet Corvette Grand Sport (1000 produced)

1999-04 Ford SVT Lightning
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out of the ones in your first list

the two mopar shelby's will be pretty good, once carol croaks anything with the name shelby will be worth alot

Zr-1 would be pretty cool, pretty easy to find em for cheap nowadays and most corvette fanatics who collect will easily pay top dollar for a pristine zr-1

turbo trans am...i dont think so

grand national i would have said yes too, but with the rebirth of the american muscle car war I doubt it will carry the value it once did being a "new age muscle car" in the 90s





as for the cobra r's its the same deal as the corvette keep it pristine and you will have mustang fanatics who would die to buy one at your asking price down the road
 
Good luck finding any of those in any decent mechanical shape. Those are all "fun" cars and people generally have used them to their fullest potential.



I'd go for the Turbo Trans Am. Not that I like it, it's just without a dout one of the more unique yet recognizable on your list.



The GN will be an extreme challenge as the race for them has begun.



Syclone/Typhoon were disasters as well as the Omni/Charger, avoid...
 
I'd also say the 1989 Pontiac Turbo Trans Am.





LOL. I'm working on two 1963 Austin Healey 3000's right now that you can buy. :D
 
I also think the turbo T/A is cool, but I'm not sure it would be a good investment. I personally think it's a nutty investment in general, but I'm really conservative rather than speculative. I guess if you have good advice on it....however I'd point out that most people in the "investment industry" have been part of the problem in recent years, not part of the solution (the first problem, IMO, is calling it an "industry", it should be a vocation, the "industrializing" r.e., securitizing of things that never should have been was all part of the problem).
 
jdoria said:
Good luck finding any of those in any decent mechanical shape. Those are all "fun" cars and people generally have used them to their fullest potential.
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No, not really.



1.) Find a low mile unmolested 1993 cobra. Fox body mustangs have already gone up a lot in value. A stock 5.0 LX coupe, black/black, 5spd, no sunroof will be your best investment fox-body stang wise.



2.) Another good option is a 2003-2004 cobra. Get one that is agian unmolested, (a pulley/cai is okay, just be sure to get a stock one). Almost all terminators have a cai/pulley. These cars are not going to go down in value anymore. Especially the low mile cars.



3.) A first generation Lightning. If you can get an all original, it will be worth a ton.



Good luck! You'll have an easier time selling the above, that the other cars you have listed. Don't get a lightning, (99-04), they will not be a collector.



EDIT: Low mile 93 Cobra R's are going for $55-$70k. If you can, jump on one that is in the $50's to low $60's.
 
Excluding the "R" stangs the only late model mustang I would consider an investment would be the '84-'86 SVO mustangs. Stock 84-86 SVO's could beat 87-95 GT Mustangs (and maybe the Cobra's) with it's turbo 4 cylinders power plant.

1986 Ford Mustang SVO - Modified Muscle Car - Mustang Monthly

I would trade my stang for one in a heart beat. A true sleeper from the factory that didn't get much attention.

1987 Buick Grand National would be my pick from your list as investment. If you could find a Buick GNX that would be a great investment.

Info: T-Type, Grand National, GNX Production Figures

Rarest Grand National: The 1982 with only 215 produced.

Rarest Turbocharged Grand National: The 1984 with 2000 produced.

Rarest Turbocharged Regal (non GNX): The 1987 Regal Limited with only 1,035 produced.

Second Rarest Turbocharged Regal: The 1987 Turbo-T with only 1,547 produced.

Rarest Regal Sport Coupe: The 1982 with only 2,022 produced.

GNX vid YouTube - 1987 Buick GNX 223 on Classic Car and Driver Flashback
 
1999-04 Ford SVT Lightning
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I took one less all original Lightning out of your numbers for you to help drive up the collectors value!! :woot2:



The turbo trans am has been a collectors item for quite some time already as well as the fox body cobra so they are bringing some big money already. If you could be lucky enough to find a GNX for a decent price that would be a very wise investment but once again its no secret they are colloctors so they are hard to find for a decent price.
 
89gt-stanger said:
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Another good option is a 2003-2004 cobra. Get one that is agian unmolested, (a pulley/cai is okay, just be sure to get a stock one). Almost all terminators have a cai/pulley. These cars are not going to go down in value anymore. Especially the low mile cars.
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Seems like the 03/04 Cobra's are still taking a nose dive. I wouldn't be surprised if you could snatch 1 up this winter for under $15,000. Sweet car, but as long as the price decrease hasn't stabilized, I'd stay away.



I'm liking the option of a ZR-1, TTA or a Shelby. Affordable and surely a high dollar collectable.



My neighbor just bought a 1988 Anniversary Vette (all white) with 3000 miles for $16,000. The identical car (with ~5000 miles) just sold for $35,000 at Bloomington Gold. Crazy!
 
I don't think you'll make money on very many cars. Especially not short term. And realistically, if you're looking for a car as an investment, you're better off taking that money and investing it in something else.



So what you should do is ask yourself if this is really an investment, or you just want a collector car. If this is an investment, then you need to immediately stop making investment decisions, lol. If you just want a collector car, then pick something that you love, and forget about the "which will be a better collector car". Get whatever car you want the most.
 
Personally, I do not think of cars as investments. Why would you buy and investment where you are only hoping to make money instead of putting your money somewhere you know it will make money?



Why not invest your money properly and then use the money you make off the investment to pay for a car you want?
 
David Fermani said:
You're right - none of these cars will be worth any more than the initial investment in 20+ years.....
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You might get lucky and make some money if you don't have to do any work to the car. Finding clean old cars is really hard though. I think you have a good idea, but I don't have the courage to try. Way easier ways to make good money though.
 
XRL said:
.. you're better off taking that money and investing it in something else..
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Heh heh, I don't need any rationalizations to buy cars like those under discussion, but I don't see them as investments either. My '84 RX-7 GSL-SE has 23K one-owner miles, full documentation since new (every tank of gas, every wax job), is relatively rare (at least in mint condition with original paint), and is fun and usable. But it's no investment; it's just worth whatever somebody will pay for it on a given day.



REAL investments? Right now, IMO, the stockmarket is ripe with bargains. Wait until the next sell-off and buy stocks. In five years people are gonna marvel at how cheap some investments are right now.
 
Here's an interesting site that goes hand in hand with this:



Matt Garrett's Car Collection Home Page



This gentleman seems to have a keen interest in collecting late model vehicles! Here's a few lines from his site which I feel sounds reassuring to someone wanting to do this:



From this section: Matt Garrett Car Collection - Dallas Texas



Think again people. Some 79 TAs are worth more than any of those 50s chevys. Top example 70s and 80s luxury cars are seeing extreme high prices already. The future will be interesting to see. I think there will be collector cars for every era and will always be. 15 years from now, the late 80's 5.0 liter mustangs, 5.7 liter Irocs and GTAs will probably be the hot cars to have as collectors. The 90s ZR1 and 89 TTA will probably be the big money cars. Now is the time to buy those I can assure you there. 30 years from now, 2000 model Honda Civics may be the #1 collectible. I have learned that keeping your mind closed in cars will only make a really big fool of you. Even though vintage cars do not compare to modern cars in performance, technology and drivability, the nostalgia of an era past and the fact really nice old cars have proven to appreciate are the two things that are very real about classic cars.
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I have watched the collector car market for a few decades from a distance.Its easy to see as one gets to the point in life that they have some disposable income . They are usually in the market for what was hot when they were young and had other obligations. This may have kept them from buying their dream ride.So somewhat the hot cars of any given generation will most likely be the hot collectible in 20-25 yrs IMO. its hard to go wrong with any limited production but not limited to Mustang,Camaro,Porsche,Challenger,Corvette,Viper with a plus going to special runs by AMG,Saleen,Shelby,Rousch etc. Will these cars make you rich ? Most likely not but IMO they beat the hell out of the low % being offered on CD's and various other low risk investments.
 
David Fermani said:
Here's an interesting site that goes hand in hand with this:



Matt Garrett's Car Collection Home Page



This gentleman seems to have a keen interest in collecting late model vehicles! Here's a few lines from his site which I feel sounds reassuring to someone wanting to do this:



From this section: Matt Garrett Car Collection - Dallas Texas
Click to expand...



I like that guy's philosophy! I too have some pretty strange taste in the sort of cars I'd want to have a collection of if given the chance. Maybe some day I'll have the space and the funds to build out something like that to keep long term....
 
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