I lose my ass on all my cars. I'm a car guy and purchase them to enjoy.
Most cars depreciate. Some cars appreciate with time. I pay cash for cars, so I am never "Under Water." Regarding Ferraris, other than a shortlist of exceptions unless you have a carburated 12 cylinder Ferrari that you bought at the right time, it will end up costing you some money to own the car. If you want to avoid losing money, for enjoying a Ferrari, there is always Uber.
I bought a neglected 360 to fix up hoping to come out ahead. Didn't exactly go as planned. I'm about even I'd say. The knowledge I've learned about the platform was well worth it.
My 1988.5 328 GTS is an all-original 30k mile car. I bought it in 2006 and at the moment have spent a total of just under $65,000 on it including purchase, maintenance, repairs, and accessories. I think I could get more than that out of it. But I'd have to sell it to find out. I did have 2 unsolicited offers of $75,000 for it this summer. Sometimes I think I should have taken it. But if I sell this car, I'll never have another Ferrari...
As a late GenX, you guys are seriously over estimating what you think your classic cars will fetch. By the time we want to retire ain't gonna be no funds left for fancy classic cars even if you can still drive them on the road.
Didn’t buy my Ferrari to make money; I bought it to drive and put as many miles on it as possible. Miles = smiles!!! Am I above or below water? Undoubtedly below as I don’t have that kind of luck; but I don’t care as the enjoyment of driving it is worth it to me.
Eh, I'm probably about even, which is really about the best place to be when you are buying to enjoy, rather than flip. I'm sure I could get what I have into it if I sold it today (which is tempting) I bought the lowest-priced, highest mileage, gated, US-spec Modena on the market when I got mine in 2016, put around 10k total into it, sold about 4k worth of stuff that was on it (challenge wheels, stereo system, etc.)....not to mention it has a ton of new and updated parts on it. Pretty sure I could break even, even though the manual craze has kind of evened out.
Ya know the question in the poll is not what is asked in the OP. I answered NO to the poll based on the question posed in the OP. If would be YES if I answered the question "Are you under water".
Having spent the last 30 years in banking / lending / credit, the term “underwater” has a specific meaning in my world. Underwater means that you owe more against the asset (car, real estate, whatever) than the market value of that asset. So if you are still carrying a loan of $50K on an SUV that you couldn’t sell for more than $30K, yes you are underwater. On the other hand, having spent money on something you have enjoyed does not mean “underwater” unless you intend to sell it and will be left with ongoing debt and expenses post sale. I bought my 328 in 2006, and have enjoyed every mile in it. I’m not “underwater” in any way at all, as every dollar I have spent since then was an investment in my own enjoyment. If I ever do sell my 328 (unlikely) there are no lingering expenses to cover, so I will never be underwater. That said, the last 13 years have been a bit expensive at times, but that’s a completely different discussion.
I am ahead ... but not by much. A few Gs tops even though mine has appreciated near, but under, 100%. But when you paid what I paid, TWICE Nothing is still NOTHING.
1977 MSRP 11.5K stg 1992 bought at 25K 2019 agreed valuation 80K Currently kite surfing, however its a big ocean with some rogue waves that could easily bring her down.
I have sold 2 Ferraris in my short life. Both more than 20 years old. Testarossa, bought at auction, made about $70k all in when sold via dealer at the height of the fizz. 550, didn’t actually sell it but received agreed value insurance earlier this year, when it was killed by a falling tree while in storage, around $20k up all in. I own a F512M and I think I probably would not be up on that if I tried to sell it now. But it’s a lot of fun.
Probably not Under on my 355, but only had a year and paid a fair price for it. Definitely under water on my 430 My 64 L76 Vette maybe about even if they stay flat line like they've been My 68 L79 Vette I'm Above Water as I bought for $18K, put in $3K but had an offer @24K from my Mechanics Neighbor when he was putting my new suspension parts on.
With the really inexpensive cars, one 30,000 mile service and a couple belt changes and that’s half the initial cost already. Keep it and drive it for two 30,000 mile services and you’ve now matched initial price. (assuming adjusting valves and mechanic sending pics of camshafts sitting on bench plus fixing general while-you’re-in-there stuff runs 10k). worth every penny. Moar road trips. Image Unavailable, Please Login
OP here. Poll is ended, thanks for the great insights. As a first time owner, I bought my 308 QV in June 2016, which in retrospect was a local peak, plus had to deal with some surprises (quite typical I'm told) that added up. But, like all of you, I bought it because I enjoy it, and I continue to invest to get everything just right. While under water (perhaps "upside down" is a better term per Rosso328's comment), I've found this hobby to be far less expensive than many other vices, and my exposure at the moment pales by comparison to my daughter's college tuition. In the long run, though, the returns on both (in all their various forms) are priceless.
Interesting question, since many of us have a Ferrari, but would prefer a better or more expensive (or more collectible) Ferrari. Unfortunately, if you bought 3 or 4 years ago, your buying power just took a massive nosedive, probably on the order of 30-40%. So now you are at risk of being forced out of the "trading up" plan that you meticulously laid out for yourself. Even the guys that have collections are consolidating to own just the ones that are truly collectible (i.e F40). So what to do? Try to ride it out and hope you will be in a better position in 2-3 years? Not likely to happen - values are definitely still heading down for the foreseeable future. Bail out at a realistic market price and start the climb again? Maybe, but probably have to choose a different marque, in that case, where your capital gets you more collectibility. Maybe Porsche. Or take a flyer on a Lambo. Murcielago anyone? Countach, even Diablos have done reasonably okay. I digress, sorry not the OP's question. I'd say I'm roughly break-even on my 89 Testarossa that I bought in 2006 for 92K, based on what I've been offered for it within the past couple of months.
ultimately I'm more concerned when my throttle gets sticky and the peddle box needs carpet fur cleaned out versus the asking price of my car dropping by half. upside down is when your work life means you can't take that driving vacation long weekend to your favorite bed and breakfast.
I bought a 92 512TR about 4.5 years ago so if I sold today yes I would be upside down about $40k. I think the car has flatlined and I don’t see any further decline. Not actually too bad considering my 18 488 will likely depreciate 30k per year over the next five years. I also purchased a 87 328 about eight years ago site unseen on eBay no reserve for $25k. I think she had about 26k miles. The seller didn’t mention any history so the bidding was pretty weak. Also only posted a handful of pics. I was anxious to see what the delivery truck was going to unload. I was pleasantly surprised at the condition when I received the car. Immediately gave it a hand wash and wow the paint popped. I couldn’t believe what I found in the trunk. Almost a 2” folder of service records and history. Wow it was like finding a gold bar! If the seller had mentioned the history no doubt the bidding would have been way stronger. After giving the car a $5k major and some new rubber, I drove it about 6k miles over four years and sold it for $70k. Sent from my iPhone using FerrariChat