I’m going to take the plunge and invest in one of my “gift you an idea” ideas. This time I will not wait to take the plunge.
In fact, I’m not one to say “I hope”. Over two years ago I published an article about investing in luxury watches. Recently, especially the Rolex brand that I was looking at at the time has exploded in price on the secondary market. At that time I put my batteries a little on the subject but I was never able to invest in the theme.
I recently touched on a new topic which is investing in luxury cars. As with watches, there has already been a significant price increase. I mean, it’s not like I’m predicting the market either. In fact there is or there was a bubble but as in any question of investment it is never good to want to touch the ground. Either you do it or you don’t, but thinking that you’re going to find the best timing is next to impossible.
I almost bought a Porsche 997.1
Anyone familiar with these cars knows what I’m talking about. This is a 2005 Porsche 911 with less than 70,000 km in immaculate condition. The problem with these cars is that between 20 and 30% of them, especially with this mileage, can suffer from engine problems that can cost between 20 and 30,000 in repair. The Porsche is almost 20 years old but it looks like a modern car. I almost took the plunge but in the end I decided the risk was too high and I didn’t want to lose any money on the first trade.
The first step I just took
I am taking all these steps together with a person who has been buying and selling cars for a year as a business for a living. In fact, Porsche would have bought it from him. At this time, we have started bidding on a Japanese auction platform. Specifically, it is an auction of an old Mercedes E320 with 30,000 km, which is nothing for this car. The offer we made is very defensive so I don’t think we’ll win the offer but it’s a first step to start this new experience.
why i do it
The main reason, as always, is this: for fun. I love doing new things and learning from them. I have never bought a car to resell it later. Nor would I have imagined doing it at an earlier time in my life.
Then there is yet another reason. It is the fact that I started to write the book on alternative investments where I will dedicate a chapter about investing in luxury cars. OK, the Mercedes is “cheap” and doesn’t really fall into the “luxury” category, but the process is the same. When I talk about something, I want to do it sensibly, so I need to have a first-person experience. It means making or losing my own money.
In total, there are three reasons. The third is that I see it as a good option for the investor tool. Apart from Lego, Pokémon cards, etc. there could be luxury cars where multiple investors can buy a part of them. It could even generate rental income until it is sold. This is also done by other platforms that already exist and allow investing in collectibles.
What is said. In short: it will be fun. Let’s see what happens. The first step is done although I don’t think it will result in a purchase. There will be more offers. Some will come out.