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- May 19, 2015
- Points
- 151
Z3M investment - yes or no?
- Thread starter Gizmozed
- Start date
Tilly
Zorg Addict
- Joined
- Dec 5, 2011
- Points
- 49
Lots of good information and ideas. About a year ago the question about cars as investments occurred on another site. Back then I thought I would just look at the cars I currently had and try and see how much I had made. We have three cars in the family, a 2010 525D Touring bought new, 1997 M Roadster bought in 2000 and a 1997 1.9 Z3 auto also bought in 2000. Both the Zed's were very low mileage and the M was a prelaunch LHD German car making it one of the oldest in the world. I have every work invoice for all three cars as well as insurance,tax and running costs.
I know I am a sad person.
I took the purchase price of each car, added servicing costs and parts, tax and insurance, fuel and finally MOTs. I then subtracted the then current value(2016) for each car from the total. In estimating value I pitched at the top end at advertised prices published. This gave me the total I have spent over the years. As a comparison, if rather than buying the vehicles I invested the the purchase money with a rate of return of 3% after tax, and added just 75% of the running costs I could calculate the money I could have accumulated over the sixteen years. The difference between the two figures is how much I could have made from investing in my cars. I know I would still have needed transport but when I lived in Switzerland I knew many people who did not own a car, they used public transport( does the UK have public transport?) and rented a vehicle if needed. For that I estimated 25% of my total running costs.
Hope you are still following the logic.
So what was the outcome!
Conclusion from the exercise, do not seek financial advice from me. I have lost well over £200,000. That amounts to losing over £12000 per year. Putting it another way to break even the M Roadster would have to be worth now over £200,000 for me to break even.
Or put it another way the M in 17 years has covered almost 100,000 miles and other Zed in 17 years 47,000 miles and the touring over 7 years 55,000 miles and the pleasure that has given us is incalculable.
One final point. What if I just bought the cars stored them free of charge, sent no money on maintenance and were to sell them now and compare that with the money I would have made if I just received a gross return of 3% from investing the purchase price. By my calculations I would still have lost just under £100,000.
I am not saying you cannot make money, heck that's what dealers do, but it ain't easy.
I know I am a sad person.
I took the purchase price of each car, added servicing costs and parts, tax and insurance, fuel and finally MOTs. I then subtracted the then current value(2016) for each car from the total. In estimating value I pitched at the top end at advertised prices published. This gave me the total I have spent over the years. As a comparison, if rather than buying the vehicles I invested the the purchase money with a rate of return of 3% after tax, and added just 75% of the running costs I could calculate the money I could have accumulated over the sixteen years. The difference between the two figures is how much I could have made from investing in my cars. I know I would still have needed transport but when I lived in Switzerland I knew many people who did not own a car, they used public transport( does the UK have public transport?) and rented a vehicle if needed. For that I estimated 25% of my total running costs.
Hope you are still following the logic.
So what was the outcome!
Conclusion from the exercise, do not seek financial advice from me. I have lost well over £200,000. That amounts to losing over £12000 per year. Putting it another way to break even the M Roadster would have to be worth now over £200,000 for me to break even.
Or put it another way the M in 17 years has covered almost 100,000 miles and other Zed in 17 years 47,000 miles and the touring over 7 years 55,000 miles and the pleasure that has given us is incalculable.
One final point. What if I just bought the cars stored them free of charge, sent no money on maintenance and were to sell them now and compare that with the money I would have made if I just received a gross return of 3% from investing the purchase price. By my calculations I would still have lost just under £100,000.
I am not saying you cannot make money, heck that's what dealers do, but it ain't easy.
And in the meantime he's missing the pleasure of using it. I just don't see the point Mike. Each to his own but .................................
Tony.
He works all over the UK during the week and the ///M is just a weekend toy and his hobby.
Lee does not use his coup daily either......
Yep, I know that mate, but Mark doesn't use his at weekends hardly, he didn't use it all last year and I get it's his choice but I can't get my head round that. He will probably likely never sell it so what's the point?
Tony.
He nearly sold it a couple of months ago.
If you can buy a car at the right price enjoy it and make a profit come sale time happy days.
Nearly.
Hey it's his car he can do what he likes with it, but I don't think he will sell it Mike, and I don't blame him if it's what he wants to do.
Tony.
Hey it's his car he can do what he likes with it, but I don't think he will sell it Mike, and I don't blame him if it's what he wants to do.Tony.
Yeah, fell through on price the punter wanted to pay.Nearly.
Spot on....
No I think that's the fine for driving WAY OVER the speed limit!!Especially in Texas??
Tony.
That makes the whole point of owning a nice car pointless.You own a car and love driving it but are afraid to do it often in case it becomes less of a treat and then sell it!!!.buy a car you fancy drive it enjoy it while you get a chance if it's no longer a "treat" say adieu and move on to the next car,boat ,bike or set of golf clubs
.but don't miss a chance to put a smile on your face.
To buy or not to buy that is the question if you do not buy some one else will and you may never know. life very short .If you are lucky to be able to all the best. A dollar coin or a pile of them just do not look as good.!
A dollar coin or a pile of them just do not look as good.!
We have these for sale in NZ at the moment, not really money which I see as an investment $$$.
http://www.trademe.co.nz/motors/used-cars/bmw/auction-1382836644.htm and
http://www.trademe.co.nz/motors/specialist-cars/other/auction-1383661836.htm
It is the first time I see a convertible M for sale since I have my Z3, the clownshoe I have seen before for sale for the same price.
http://www.trademe.co.nz/motors/used-cars/bmw/auction-1382836644.htm and
http://www.trademe.co.nz/motors/specialist-cars/other/auction-1383661836.htm
It is the first time I see a convertible M for sale since I have my Z3, the clownshoe I have seen before for sale for the same price.