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extrashaky · 04-08-2015, 01:09 PM

I think these cars will follow the pattern of the British sports cars from the 60s and 70s. Right now an MG or Triumph in reasonably good driving condition for its age runs about 2 to 3 times its original purchase price. Going with that measure, figure a twin will pull in $50K to $60K in 30 years.

BUT, before you get all excited and start making retirement plans, keep in mind that the long term inflation rate in the United States is 3.22%. If that rate holds in the future, $25K of today's dollars will be worth $62,675 in 30 years. So if you spent $25K today, keep the car for 30 years and sell it for $60K, you'll actually lose $2600 to inflation alone.

In fact, you'll actually lose more than that, because the car will cost you money in the interim. You'll have to maintain it or store it. Even a stored car has to be maintained, and storage isn't free. So you have to factor those costs into your loss. It might also need to be restored, which isn't free and will also add to your loss.

Also keep in mind that the values of the cars goes down before it goes up. When I was a teenager in the 80s, you could pick up roadworthy MGs and Triumphs any day of the week for about half their original purchase prices. So if you were really trying to maximize your return, you would wait until the twins were regularly selling for under $10K and pick up a good used one. Even then it's not likely you'll make any money on it.

There are only two times it makes sense to treat a vehicle as an investment:

First is when you use it as a capital expenditure investment for business purposes, where the use of the vehicle makes you money. When a glass installer buys a glass truck, he makes money from that purchase by using the truck in his business. I'm actually using my own BRZ that way, since I use it for work and make more money off the mileage reimbursement than it costs me to operate the car.

Second is when the vehicle itself is rare and desirable from the outset. The original 2000GT on which the twins are modeled goes for millions at auction because there are very few of them. That's not the case with the twins. They will not be boutique cars now or in 30 years. They will be a lot more rare in 30 years, but no more so than an MGB is today.

As for whether your unmodified car will be worth more than a modded car, that really just depends. It'll be worth more than one with a Rocket Ninny kit on it, because it will cost more money to undo that damage. But one with just a regular stick-on body kit, bolt-on turbo and Tom's tails that can be taken back to stock fairly easily will not be significantly less desirable than one that never had a single mod. What will be the deciding factor is how much damage the mod did, and most mods are easily reversible. Even engine mods won't matter, because by that time most of them will have needed an engine rebuild anyway.

04-08-2015, 01:09 PM	#21
extrashaky Senior Member Join Date: Mar 2014 Drives: 2014 BRZ Limited Location: USA Posts: 4,046 Thanks: 1,100 Thanked 5,620 Times in 2,267 Posts Mentioned: 55 Post(s) Tagged: 1 Thread(s)	I think these cars will follow the pattern of the British sports cars from the 60s and 70s. Right now an MG or Triumph in reasonably good driving condition for its age runs about 2 to 3 times its original purchase price. Going with that measure, figure a twin will pull in $50K to $60K in 30 years. BUT, before you get all excited and start making retirement plans, keep in mind that the long term inflation rate in the United States is 3.22%. If that rate holds in the future, $25K of today's dollars will be worth $62,675 in 30 years. So if you spent $25K today, keep the car for 30 years and sell it for $60K, you'll actually lose $2600 to inflation alone. In fact, you'll actually lose more than that, because the car will cost you money in the interim. You'll have to maintain it or store it. Even a stored car has to be maintained, and storage isn't free. So you have to factor those costs into your loss. It might also need to be restored, which isn't free and will also add to your loss. Also keep in mind that the values of the cars goes down before it goes up. When I was a teenager in the 80s, you could pick up roadworthy MGs and Triumphs any day of the week for about half their original purchase prices. So if you were really trying to maximize your return, you would wait until the twins were regularly selling for under $10K and pick up a good used one. Even then it's not likely you'll make any money on it. There are only two times it makes sense to treat a vehicle as an investment: First is when you use it as a capital expenditure investment for business purposes, where the use of the vehicle makes you money. When a glass installer buys a glass truck, he makes money from that purchase by using the truck in his business. I'm actually using my own BRZ that way, since I use it for work and make more money off the mileage reimbursement than it costs me to operate the car. Second is when the vehicle itself is rare and desirable from the outset. The original 2000GT on which the twins are modeled goes for millions at auction because there are very few of them. That's not the case with the twins. They will not be boutique cars now or in 30 years. They will be a lot more rare in 30 years, but no more so than an MGB is today. As for whether your unmodified car will be worth more than a modded car, that really just depends. It'll be worth more than one with a Rocket Ninny kit on it, because it will cost more money to undo that damage. But one with just a regular stick-on body kit, bolt-on turbo and Tom's tails that can be taken back to stock fairly easily will not be significantly less desirable than one that never had a single mod. What will be the deciding factor is how much damage the mod did, and most mods are easily reversible. Even engine mods won't matter, because by that time most of them will have needed an engine rebuild anyway.