Many people have earned good money from investing in cars. Sone nearly doubling in value in 10 years.

Something that common finance investment just cant match unless closely managed.

So I put a challange to the LCB collective.

Budget of 3k and 5 year return. What would you buy?

As a starter, I am thinking MG BGT

[Edited on 11/2/16 by bi22le]

A decent Pug 205 GTi would be a safe bet. Or a classic Impreza Turbo?

quote:

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Originally posted by bi22le
Many people have earned good money from investing in cars. Sone nearly doubling in value in 10 years.

Something that common finance investment just cant match unless closely managed.

So I put a challange to the LCB collective.

Budget of 3k and 5 year return. What would you buy?

As a starter, I am thinking MG BGT

[Edited on 11/2/16 by bi22le]

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had a Fury which I sold and two years ago went for a heavily modified Anglia, now nearing completion. The price of classics seems to have risen sharply over the past year or so, and not just Mk1 Escorts. So, at 3k getting a nice classic may be tight or need a bit of tidying - I would try an A40 farina, you may possibly pick up a 100e, maybe a spitfire or an Anglia 103e (cheaper than a pop). MGB is likely to be a rubber bumper at that price.

Remember if it is pre 1960 there is currently no MOT or Tax requirement.

this looks nice - bit over budget but -

MORRIS MINOR - 1965 - TRAFALGAR BLUE - RELIABLE - LOADS OF HISTORY - READY TO GO

For small money your best bet would be to buy something that was common and is starting to disappear but hasn't yet become collectable, though you'd probably want to keep it longer than 5 years.

Using my own logic I would be looking for decent examples of Rovers as a lot of them are probably as cheap as they'll ever be and I think there may be a few one retired owner from new 75s still knocking about that won't be much money.

If you fancy a gamble for £500 to 1000 or so then look for a Rover 800 Vitesse Turbo Sport ---should land a pristine one in that price range

For a bit more look for an MG TF but only an immaculate one

If you had more still 5k you could find a decent FWD Lotus Elan M100

I'm with ewemarine, unless your incredibly lucky a 3k MGB will be a pile of tat, and in 5 years it will still be a 3k pile of tat. In 50 years it might be worth something......but never loads as too many were made.

Trick with classics is to have a crystal ball and buy something that no one has cottoned on to yet. I saw a quote the other day about classic bikes which went along the lines of " you never pay too much for a classic, but you can pay too early" wise words really.

With 3k to play with, you might be better looking at bikes, 70's Japanese stuff could be just about in budget.

As for your double in 10 years statement, my mate bought a very tidy Jenson interceptor roughly 10 years ago for 12.5k, he turned down an offer of £75k for it the other week......

I like the idea of a bike but I can't ride it as I don't have a licence. Easier to store though.

I would like to use and enjoy it in the summer, then wrap it up for the winter. 500 miles a year

A few years ago a triumph stag would have been good but now a good one will be 10-15k. I might go for a good Triumph Spitfire.

For mgb, youd need min 6k for decent condition unless you plan to restore. Mg midget or triumph spitfire may just be in budget.

Mr2 turbo? Volvo 850 t5 or r?

S2000? <<< scrub that, outa budget.

Ford capri?

Early vw golf?

Kawasaki z1000?

Alfa 159

[Edited on 11/2/16 by 02GF74]

You need something that nobody really appreciates at the moment so hardly anyone will save them. Also if it has a good motorsport pedigree, or a bit of heritage or a good back story it will help.

Last year I picked up an Alfa 155 2.0TS Sport for £300, there are only a couple of hundred (of any type) left in the country now and only about 50 2.0 Widebodies. I think as my generation mature they will become sougth after due to people fondly remembering mid-nineties BTCC.

Actually there's the answer, mid-90's 2.0 saloons that were in the BTCC, Cav' GSI would surely be a good start.

Alfa Romeo Spider 3.0 V6. Might have to increase your budget slightly though........

Phil

Classic ford, XR3i should hold its value and creep up.

Nicer to get something a bit special, XK8's have just bottomed out and are starting to turn, very nice cars I ran one for a couple of years.

Mercedes 190E 2.3-16.

They are attainable for £5k and they're only going up! Parts from MB aren't always as dear as people think either.

you could try to find a car that's very rare but not particularly valuable and then buy all of them, then they're worth what ever you say they are.

quote:

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Originally posted by emwmarine
3k isn't really a budget.

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import a volvo 242 GT from oz for 3k......

prices will never go down for a car never offered in this country .....

if I just wanted to sit on some money , and make a bit in 5 years , then it would be a Merc SL.....

and as has been said already , anything with a pedigree in motorsport will always have its followers...

Honestly? I'd buy a ford puma or 2. You can buy them for peanuts at the moment. But over some forums they are going mad for them. I genuinely think that in 5 years time a good one will only go up in value.

They are rusting away at a rapid rate so in a few years time only the good ones will be left.

I may actually put my money where my mouth is.

Also the classic Impreza turbo would be a good shout. You don't actually see that many around anymore. Well, not like you used to anyway. The 3 door cars have rocketed in value so a good 4 door will be the next best thing. A couple of years ago I was very close to buying a V5 STi typeR. Fresh import, 60K KM's for £5000. That same car now is worth nigh on double that. Hindsight is a wonderful thing!

Always a gamble, and taking into account maintenance etc often not great investments. But far more fun than a savings account.
Something that was a "poster" car when first about is important. So the good hot hatches are a safe bet. But many are already climbing in value. Sporting ford stuff, but MUST have an RS badge for real potential, but the XR should be OK. And intergalactic mileage is a no-no, full history a must.

Otherwise the classics. GT6's have been shooting up in value, TR's (though not yet 7's) have doubled or more in 10 years.
Here choose something that will appeal to people who will be getting a fat pension pot.

Suzuki Cappuccino?

Bit left field and probably not in the public consciousness enough but a good one might just drop in your budget and they're getting thin on the ground now

how about a landrover? not sure what 3k buys though. Useful motor too. And cool.

quote:

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Originally posted by twybrow
A decent Pug 205 GTi would be a safe bet. Or a classic Impreza Turbo?

---

quote:

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Originally posted by james h
Mercedes 190E 2.3-16.

They are attainable for £5k and they're only going up! Parts from MB aren't always as dear as people think either.

---

Clio Trophy? only 500 made, best production version of the best hot hatch in recent years. Pretty niche car, but IMO will be a genuine collectable classic.
5k would get a mint low miler

But with any car thats being purchased as an investment, unless its one that needs work (so the investment/clawback is made with time and effort) to keep/add to its value it would need to be locked away to keep mileage down and keep it mint. If not, there's no guarantee you will see any sizeable return.

**Edit - mis read budget and times scales (I thought budget was 3-5, with no time scales)
- I dont think 3k will get you much return. Not in 5 years.


[Edited on 12-2-16 by loggyboy]

Given savings interest rates and the time/effort involved in usual financial investments a car could be a good investment. As above, the space to dry store and work on it is a bonus and can really help make it worthwhile. Hand't considered a Clio as I'm not a Renault kind of a guy, but I can see them rising in value.

Subaru Justy..............Cheap now, but I think a good one will become more valuable as time goes on.
Also the Smart Roadster could be worth a gamble?

Two door Impreza turbo, but probably a bit late as they are already on the up...

Or how about some parts instead? Just look at what a Sierra rear end is worth now versus a decade ago. Are there some engines that are worth holding on to? Just a thought.

£3K will not buy much of a 'classic' Land Rover, it will however acquire a rusty collection of scrap that has the financial devastation that only a politician/banker could match.

I'd be looking at RD250/350LC's, and/or a good RD400(E). Plenty of nostalgic old gits like myself wanting to relive the horrific crashes of their youth.

You'll be lucky with only £3k!

I agree that B GTs are going to go up in value.

Loads around of course but because they've been cheap for a long time a lot of stock have not been maintained well or abused and modified and a real mint car (even rubber bumper) is going to become sought after in time; I reckon you'd need more than 5 years to make the investment worthwhile though.

With hindsight I know I missed a trick as I bought a rotting B GT about 9 years ago and gave up on it after only a few years as the rot was too great and the car worth too little and I needed a daily driver. The car I bought ticked all my personal boxes - BRG, wire wheels, mk1 with all the trimmings, good compression in the engine and mechanically sound but was a terrible purchase even at the low low price of £2k. (bloody good fun though so I'm not too worried)

Whilst looking at that time I also had the opportunity to purchase a rubber bumper B GT only a couple of years newer and in absolutely mint condition, a fraction of the miles, dry stored for the majority of its life and fastidiously maintained with no expense spared and all of that history saved... all for the same £2k.

Being young and foolish and only worrying about driving experience and not yet fully informed about the emotional damage caused by losing money hand over fist on cars, I went with the shitbox that won my heart even though deep down I knew even then that the rubber bumper car was by far the better buy.

If you could find something like that and hold onto it for another 10 years I think there will come a time for much stronger money for them as the rubber bumper model has by and large been unloved or simply converted back to mk1 spec whittling down the number available. It'll go up in value over 5 years but maybe not enough to be worth the opportunity cost and maintenance required in that time?

That said, maybe I underestimate the numbers available because a quick look on ebay seems to show quite a lot available in what appears good nick for not that much money.

The people really making money somewhat reliably on car investments are putting their money into exotic cars that you and I cannot afford now, never mind in 10 years time. It's a big punt on a car that is just at a low ebb in value and may or may not gain over the long run but certainly will cost money to maintain in both the short and the long run!

quote:

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Originally posted by motorcycle_mayhem
£3K will not buy much of a 'classic' Land Rover, it will however acquire a rusty collection of scrap that has the financial devastation that only a politician/banker could match.

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Ford Puma
Peugeot 205gti
Citroen AXGT
Renault 5 Gordini
Mg Midget RWA
Austin A35 (race series will take off soon)

I'd also go for a two wheeled investment. Something a bit special, doesn't need to be particularly old now but it does need to be likely to age well.

I'd suggest Triumph and Ducati will give you more than Yamaha or Honda, although as mentioned above there are even favourable options with Japanese.

And it's easier to store!

quote:

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I've got a GT6 which it would be nice if it acted as an investment but to be honest is just nicer than seeing the money going down in value in the bank.

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another couple to add to the list -

one pretty obvious - Clio 172 (cup/trophy if you can find one)

one off the wall - panda 4x4 ????

Someone mentioned car parts .

Maybe i could buy a barn found cossie engine.

Invest in a check over and rebuild then hold it.

i don't have lots of space so smaller the better.

Someone at work mentioned watches. I know zero about material objects outside the automotive world.

I can barely be bothered to dress myself!

I am not a material person

As mentioned previously xk8's have bottomed out
4 litre v8 with loads of torque. Driven a few and they are a great diving car
I nearly bought one but wanted a car with more track day performance so went for a boxster s
3k won't get get you one of these but for not much more you can get a good car
Now that Porsche are changing the engine config to a 4 cylinder turbo the old flat 6's may become classics?

MK 1 mondeo. Very few around.

As space is a premium a really good mk1 mx5, no point getting an engine or watch you will not wear. Buy something you can enjoy.

Saw this this morning

oops nearly worked

http://www.locostbuilders.co.uk/photos.php?action=showphoto&photo=2opel2.jpg

[Edited on 13/2/16 by Dingz]

[Edited on 13/2/16 by Dingz]

[Edited on 13/2/16 by Dingz]

[Edited on 13/2/16 by Dingz]

Buy some gold, hide it and see how it goes up...

Mercedes SLK - loads of them available from under a grand.
Convertibles are always popular.
£3k should get you something reasonable.