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Resale of a replica - Is it a good investment?
Hi everyone again...
It's the new kid on the block. I am wondering how much a cobra replica depreciates after owning it for a few years. How many of you have lost a lot of money after buying a cobra and then reselling it? I am looking for a fun to drive car that does not depreciate. Something I can sell 5 or 10 years down the road knowing I can get pretty much what I paid. Thanks P |
I think in general any car driven depreciates. In todays economy and with all that is going on in the industry I think it is a virtual certainty that if you buy or build a new car you will take a loss financially. If the financial concern is a primary consideration buy a used car and take less of a hit.
Rick |
It appears to me that replicas hold better value than the average toy car (Porsche/Ferrari) however with the increasingly supply you will most likely take some sort of loss. If you don't want to lose any money buy a vintage car (vette/mustang). I would gather your chance of losing money is much less, and will most likely appreciate if you don't overpay in my opinion. I don't know anyone who lost money on a Vette (53-73) who held it for at least five years.
Jordan |
I don't think much can be added to what Rick said other than:
1. We saw a pretty seismic event unfold yesterday and right now is a GREAT time to buy a new Kirkham if you can do something within 2 weeks. It WILL affect the resale market in the near term. 2. I think we will see some further depreciation in the used replica market, so if entry and exit costs are a concern, buy a premium used replica with low miles. There are quite a few cars being offered right now with 3000 or less miles. You may lose a little but hopefully not much. 3. These cars are NOT investments, they provide great pleasure and if you calculate the fun they give you at $10/hr, $20/hr, $30/hr, you will still be ahead. |
Very simply, I would not count it as in investment. Buy a Cobra because you want a Cobra. Will you get your money back? There is no way to predict that. Generally, they do have a pretty good resale value, and you may well get your money out of it. But don't count on it and don't let it be THE deciding factor in the purchase.
Steve |
Getting a good deal is always a matter of being at the right place at the right time with CIF (cash in fist). I was blessed with this situation. Purchased turn-key ERA 427 S/C built for show and go--427 s/o dynoed at 570 hp--for mid $40K. Original cost was $73K. Built in 1996 and purchased in 2002 on eBay, car had less than 1200 miles on odo. The original purchaser took a big loss, but my exposure to a loss is much less considering what I paid. Problem is I don't want to sell my car, if that's a "problem".
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Second and third owners get the value. First owner pays the price for being first.
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Replicas of cars are NOT investments. Want a car you can drive for 5-10 years and sell and get your money back? HA!, there is no such thing. Now buy a 60s Vette, in original condition, drive it on sunny days only, keep the miles under 2000 a year, and maybe in 5-10 years it will appreciate enough to get your money back. Then again,you have to look who the buyers are gonna be in that 5-10 years. I Know one thing, the Cobra replica market is crumbling before our very eyes.
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all posters are right on. these are not investments but hobbies. there are expenses involved, kinda like country clubs and yacht clubs. however, you can generally own one of these for 3-5 years and lose less in depreciation ( barring a major expense of engine rebuild or trans rebuild) than you would if you bought a caddy or lincoln today new and sold it in one year used. best buys for minimal depreciation is buying one used, especially in todays buyers market. buyer #2 or #3 many times can make money or sell it at near break even in 1-3 yrs, or lose very little. the enjoyment of these cars for either waxers or racers or drivers is what gives you many smiles to the miles and makes the ownership experience unique. good luck. bill.
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Mr. Bruce:
We are on the brink of a new year. Forget the "crumbling" reference. Get that champagne bottle so it looks almost full--not half empty. Hey...those Kirkhams are giving everyone the chance of a life time. Time to celebrate!!!! All the best. |
Resale depends on what you are selling and who is buying at the time of sale.
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Who the hell cares what they do at resale time.... You buy a car in the 30K to 40K range and you can't get hurt... If you drive it for five years and sell it for half of what you paid for it then you did pretty well... You won't be crying for the loss you might take but rather that you have to give the car up....
:CRY: :CRY: ;) |
Quote:
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My estate will take the hit...........I won't be around to worry about it !!!!!!!!!!!!
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pgingl,
The approach in your selection of your car and the bottom line cost of the major components will determine if your resale will be more than your final BASE COST of build. Way too many do not research this area, then later find the final costs have bit them, so INVESTMENT no, fun car YES. YOU CANNOT build a CUSTOM COBRA and sell it for more than your cost, your market segment of purchasers at time of sale will possibly not like your "custom" touches as to suit their tastes. You can however build a "replica" of a popular/known original car and sell it for more than you have in it. This same analogy is found in the high performance supercar market and street rods also, so it's not amazing that it's the same when it comes to resale of a COBRA replica. grumpy |
I do know with the FFR, if you don't go nuts and just build a clean and simple roadster, you can make a little or at the very worst break even after some years of use.. what other hobby can you do that with....
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Build or buy the car to enjoy, don't look at it from a resale standpoint, as you'll loose out every time. These cars are not an investment, but a labor of love, whether you buy it, build it, restore it, drive it, or park it in your living room and just stare at it...........
Bill S. |
If your thinking about getting a Cobra, driving it for a couple of years and then selling it, you are doing the wrong thing. First of all, unless you have drove your own Cobra for the first time and felt the excitment that comes with that experience, it is hard to put in words what that feels like. Once you make the committment to purchase a car to build or a turnkey, selling it will the last thing on your mind. I have 1,300 miles on mine, so I'm sort of a "new guy" also. The only time I have thought about selling it is when I was looking at building a GT-40. My wife told me I was a little crazy, I just might be.........
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Toy Collector: Do you think the Kirkham deal will effect the replicas priced around 40K, or the ones priced higher? I am no replica manufacturer, but it seems to me that it would be difficult for Kirkham to maintain that price for an extended period of time. If they cant keep up that price level for an extended period of time I cant see that alone affecting the replica market in the long run. Especially a manufacturer with a strong business model.
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Less than a chebbie but don't build a car based on it's resale value. A good quality car will always be worth more than a cheap one.
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