Lots of educational video to watch today, because… it’s the weekend!
One of the reasons why wealthy people are looking at hypercars as fungible assets and investment vehicles [sic] is because they are wealthy enough to ride the ups and downs of consumer demand — why, for example, a rusted-out 1950s-era Porsche 911 or 1960s E-type Jag can ask for, and get, a premium price for that piece of junk. Scarcity, of course, helps — which is why a rusted old 1956 Porsche 356 cabriolet will always be worth more than a worn-out 1975 Honda Civic: the first is worth restoring, the second is only worth recycling.
If you’re interested in learning about this business — even or especially if you can’t afford to play in it — then I would suggest you watch Cars & Money, Rob Moore’s excellent podcast channel with his partner, Carl Hartley of Tom Hartley Motors. Here’s one example. (All the podcast episodes are long, about twenty minutes too long in my opinion, but they’re peculiarly fascinating. This particular episode, you can quit at 1:28.00)
And speaking of watching, there’s the premium watch business, where Teddy Baldassarre, for example, plies his business. (Here’s one.)
But in this latter category, if you want to see all the costs of creating a watch collection — as an investment strategy — then please take a look at this one, (yeah, it’s A.I., but it’s factually correct) to find out how the big watch brands are bending collectors over the table:
(…and these guys are the worst, which is why I’ll never own a Rolex, because I’m not going to play their stupid game.)
Oh, and by the way: the actual purchase price of these items is only the first lightning-strike on the wallet. Then comes the (mandatory) servicing, the parts replacement, etc. etc. etc…. see how the insurance companies play ducks and drakes with your premiums.
Oh, and by the way, car manufacturers like Ferrari are equally guilty of the same kind of practices (which you’ll also learn from Cars & Money; watch out for the word “allocation”).
…and Porsche is just as bad.
If a fool and his money are soon parted, then the duration of “soon” is shrinking faster than a cheap Chinese cotton T-shirt in the clothes dryer.
And when baubles like watches and performance sports cars start becoming investment assets, the Finance Fucks in companies like Rolex are going to start making marketing decisions (pro tip: they already are).
It’s the utter cynicism of the whole business which gets up my nose. My only consolation is that the fools who’re being thus led around by the nose are the super-wealthy who can afford to pay those bullshit prices. And I have absolutely no sympathy for them.
Be the first in your neighborhood.
“Lamborghini on Friday launched the Revuelto SV, a limited-edition hybrid version of its V12 Revuelto that’s the fastest and most powerful car ever built at its factory. The model is the latest in Lamborghini’s storied “SV” line, which began 55 years ago with the Miura SV and has showcased lighter, more aerodynamic and more powerful versions of its flagship supercars. The new hybrid supercar gets an electrified boost to add to “the adrenaline and the emotions” of driving a Lambo, the car’s product chief told CNBC. The Italian auto manufacturer will make only 1,963 Revuelto SVs. The supercar starts at $741,172.
It starts with Lamborghini’s naturally aspirated V12 engine and adds three electric motors to boost the power to more than 1,050 horsepower and race from zero to 100 kph (62 mph) in just 2.4 seconds.
https://www.lamborghini.com/en-en/models/revuelto-models/revuelto-sv
Lamborghini already had the most revolting name for a car, namely the Urus. Now they’ve gone one better.
If you buy a Rolex for an investment, there’s no holding cost. You put it into a drawer and forget about it.
If you buy a Ferrari for an investment, first there’s the holding cost of a storage facility and regular inspections by the highly-paid maintenance guys. Second, even without that, the gain doesn’t even keep up with the S&P500.
A friend named Tim Oshry who is/was the Maglite franchise holder for South Africa, bought a Gallardo because all that money gathering dust in the bank wasn’t giving him much pleasure. He drove it often on the Breakfast Run to Hartebeespoort. Lolly Jackson could often be seen driving around town in his Lambo, presumably doing quality control inspections at his chain of Teazers strip clubs.
Don’t know about Rolex’s, But like exotic Cars, I suspect If they just sit in your garage or dresser drawer they don’t age well.
Every 18 months or so my 35 year old Breitling Chronograph needs a new Battery and each time it needs to go to The NYC for service in order to maintain the Water resistance warrantee. Sure, I could probably take it to ” Bob’s Watch Repair and Dry Cleaners ” for a lot less money and 3 day service instead of the 3 or 6 weeks it usually takes, but then I also wouldn’t expect it run perfectly for 35 years either. The last time I sent it in, I also had the Crystal Replaced and a full service done. Of course, that added another 5 weeks to the schedule. …. and all that for just about the same cost as a Full normal fluid change on the GT3. ( Pro Tip …. It doesn’t really matter what minor work you have done on your Porsche, Somehow the bill is always at least $ 1,000 ) Such a deal!
There’s a long history of times when you could sell your Porsche for at least what you paid for it. HOWEVER, It only applies to a few very specific models and configurations, and generally also for a specific window of time. Too soon and the newer versions use up all the interest, Wait too long and the demand window collapses. Wait even longer and now the restoration cost far exceeds what you might hope to see returned on a sale.
As they say, the best way to make a small fortune by investing in exotic cars is to start with a larger fortune.