Justifying buying a Nsx, wouldn't I be buying with almost 0 depreciation?

[OriginalNsx]

Greetings,

Yes I know a car is the worst type of "investment", and justifying or reasoning about a luxury car is pretty much futile etc. etc.

But putting that aside for a moment, and seeing as the market for a Nsx is pretty hot, would it be safe/reasonable to say that buying a NSX at this stage is almost like buying a car with zero depreciation?

Buy a car at 40K, and you can be fairly certain that after 2-5 years of driving you can sell for almost the same price you got it for? (ignoring the opportunity cost of paying 40K out of pocket, and routine maintenance and the odd repair...)

 

[BATMANs]

Look at my signature.....

Seems like it went up in value for me.... good investment.

Oh and I can insure it as a classic car with a locked in value at $150k if I want to.

 

[OriginalNsx]

Well yes your situation was obvious since you got it in 2007.

I meant someone who purchases one today, I think can safely "assume" that the car will hold its value.

 

[vivanshah]

my "worst case" is that the car will lose 5-10% of it's value (say another financial crash happens).

that's a small price to pay for the enjoyment, in my mind.

 

[jaybird]

I'd say that if you bought a good condition, mostly stock, NSX, at a good or fair price, then you will likely see it hold its value in the upcoming years (if not appreciate a bit more). Think it really has to do with how well the overall economy does - if the economy continues to do well (or even ok), then the market for these cars should really hold up well.

 

[91 X]

I'm on my third one since 2003..... Never wanted to sell any of them, but I never sold one for less then I bought one for...if you buy the right one at the right price, you'll never lose a penny. They're like driving a savings account around, at least that's what I keep telling my wife:tongue:

 

[94710]

Stock 993 Porsche valuation compare to stock NSX, same same but different! Ha
Important to keep maintenance current, and these cars do better when driven, not parked.

 

[blue_myriddn]

Buy a car at 40K, and you can be fairly certain that after 2-5 years of driving you can sell for almost the same price you got it for? (ignoring the opportunity cost of paying 40K out of pocket, and routine maintenance and the odd repair...)

Most likely. Depends a lot on how much you pay for what you get and how choosy you are with where you put your $$$. You can also feel more confident about the 5yr outlook compared to the 2yr outlook for obvious reasons. All in all though, a good NSX purchase is a pretty safe purchase compared to say a 2015 Corvette

 

[robert yeung]

I once owned a 1998 Carrera till April 2015 for 10 years and I sold it for the same price (excluding inflation) and bought 1991 NSX. To own car like this is never an investment and should not expect it when I decided to buy the Porsche or the NSX. It was just luck it held up the price. Its pure enjoyment like spending money to go for holiday.

 

[RickySixx6]

If you buy correctly (meaning price to condition makes sense) and don't drive the car into the ground during your ownership then yes, it should appreciate in value over time. While the increase on this car has been modest and nothing like the 911 market, I could imagine a small dip like one poster said of 5-10% but long term never forget what you're using to buy the car. The "USD" and over time I can guarantee that the United States Dollar is in itself a depreciating asset that will require more of it to buy anything of value.

With all of that said, yes for the most part the OP is correct in his assumption.




P.S. - a mass produced and or uninteresting new car is the worst type of "investment" you can make. Plenty of other new cars that fit under the "collectible" umbrella make for good investments.

 

[OriginalNsx]

I once owned a 1998 Carrera till April 2015 for 10 years and I sold it for the same price (excluding inflation) and bought 1991 NSX. To own car like this is never an investment and should not expect it when I decided to buy the Porsche or the NSX. It was just luck it held up the price. Its pure enjoyment like spending money to go for holiday.

Agreed, not many people buy a car in that class as an investment. At the same time, if there is a general trend towards a particular car holding it's value, it makes the decision that much easier and financially pluasible.

Example, buying a 911 turbo you might loose $1K/month or $12K/year in depreciation. If I can get a car (porsche or nsx) which I love, and know that other than maintenance/repair I can still get close to what I paid for, it is kind of a no brainer

 

[robert yeung]

Oops it was typo---I meant 1988 air cooled Carrera

 

[Lostbuckeye]

You should buy an NSX or any other car because you want it. Then enjoy driving it and when you are through with it if it's worth anything then that's just icing on the cake. Cars are not a good investment as a whole. Their value is almost always tied directly to how the economy is performing at the time. Even our beloved NSX lost value during the last recession. (The reason Batman and others of us got, what under the current economic situation, appears to be good to great deals.) The NSX's new found popularity and rarity could very well support a continued rise in value. But, I'm not going to count on it enough to store my car for someone else to drive years from now. Collectable cars are like stocks, buying low and selling high is a matter of timing and even then you could lose. But if you buy the car because you wanted it to enjoy no matter the value, you'll never lose. All of this said, I still think an NSX bought now could hold it's value for quite some time. I didn't lose money on my first one and current sales on cars like my current NSX support a decent profit if I sold it now. But, the adventures that I've had with both NSXs are far more valuable. I'll just keep all of my investments in emu farms.

 

[TomCat]

See above...I am old enough to have seen "sure fire" $ makers crash and return in value a couple of times. Buy it to enjoy it (and the NSX community)...that is where the true value is...and if you make money on it...BONUS!

 

[davidf]

I've never bought a car as an investment. I buy one for the pure thrill of owning/driving it. I eventually lose on several occasions because the money I invest in making it may own taste. But life is short. It makes me happy and since my wife fully
supports {not financially:frown:} my addiction, life is pretty good.

 

[LMR]

You should buy an NSX or any other car because you want it. Then enjoy driving it and when you are through with it if it's worth anything then that's just icing on the cake. Cars are not a good investment as a whole. Their value is almost always tied directly to how the economy is performing at the time. Even our beloved NSX lost value during the last recession. (The reason Batman and others of us got, what under the current economic situation, appears to be good to great deals.) The NSX's new found popularity and rarity could very well support a continued rise in value. But, I'm not going to count on it enough to store my car for someone else to drive years from now. Collectable cars are like stocks, buying low and selling high is a matter of timing and even then you could lose. But if you buy the car because you wanted it to enjoy no matter the value, you'll never lose. All of this said, I still think an NSX bought now could hold it's value for quite some time. I didn't lose money on my first one and current sales on cars like my current NSX support a decent profit if I sold it now. But, the adventures that I've had with both NSXs are far more valuable. I'll just keep all of my investments in emu farms.

Could not have said it better!! Also agree with the 2 posts after this one above.

Drive it and enjoy it.

 

[OriginalNsx]

You should buy an NSX or any other car because you want it. Then enjoy driving it and when you are through with it if it's worth anything then that's just icing on the cake. Cars are not a good investment as a whole. Their value is almost always tied directly to how the economy is performing at the time. Even our beloved NSX lost value during the last recession. (The reason Batman and others of us got, what under the current economic situation, appears to be good to great deals.) The NSX's new found popularity and rarity could very well support a continued rise in value. But, I'm not going to count on it enough to store my car for someone else to drive years from now. Collectable cars are like stocks, buying low and selling high is a matter of timing and even then you could lose. But if you buy the car because you wanted it to enjoy no matter the value, you'll never lose. All of this said, I still think an NSX bought now could hold it's value for quite some time. I didn't lose money on my first one and current sales on cars like my current NSX support a decent profit if I sold it now. But, the adventures that I've had with both NSXs are far more valuable. I'll just keep all of my investments in emu farms.

I agree with what your saying, that is why I prefaced my point with "Yes I know a car is the worst type of "investment", and justifying or reasoning about a luxury car is pretty much futile etc. etc.".

But along those lines, it does help one purchase a car knowing that it won't be losing x,xxx per year (for those of us that don't have that much money to play with).

 

[TomCat]

I agree with what your saying, that is why I prefaced my point with "Yes I know a car is the worst type of "investment", and justifying or reasoning about a luxury car is pretty much futile etc. etc.".

But along those lines, it does help one purchase a car knowing that it won't be losing x,xxx per year (for those of us that don't have that much money to play with).

At any given time (and for a finite period) most "traditional investments" (the stockmarket (2008/09), gold, oil futures, real estate, etc...) gain/lose.

 

[HDA]

Asking this question and expecting a neutral answer in an NSX forum is probably not your best move. Try go to a 3000GT forum. Or in one of those snobby Bavarian ones.
Also, do you really rely on on unknown people opinion to buy it? I wouldn't!
I bought it because after a 90 Civic, Integra Type R and S2000...I HAD to get a NSX!! I was dreaming about it since it came out in the 90s! My favorite car on GT1 on Playstation! The one kicking the ass of Italians and Germans! + the Ayrton Senna factor! a D.R.E.A.M. in my garage!

If you want to invest in a car get a 1987 CRX, a Mazda RX7, A first gen Honda Insight, a BMW 1M, a BMW Z3 M Coupe etc etc

Good luck in your search and follow more your heart and less your fidelity account

 

[Lostbuckeye]

I agree with what your saying, that is why I prefaced my point with "Yes I know a car is the worst type of "investment", and justifying or reasoning about a luxury car is pretty much futile etc. etc.".

But along those lines, it does help one purchase a car knowing that it won't be losing x,xxx per year (for those of us that don't have that much money to play with).

And my answer is "I still think an NSX bought now could hold it's value for quite some time. I didn't lose money on my first one and current sales on cars like my current NSX support a decent profit if I sold it now."

My point is, don't count on this economic situation to remain this way forever. These cars are toys in the grand scheme of things. If the economy tanks, our cars and any collectable cars are likely to lose value. So if you buy now when prices are at all time highs, your chance of losing value is much higher than when some of us bought ours say four to six years ago when prices were near their lowest point. Your chance of losing money on an NSX appears to be less than most cars out there but the risk is still there. BTW, I didn't have much money to work with when I bought mine. However, I didn't base my decision on potential value or depreciation. I just wanted it to experience driving an NSX. I think that the only justification for buying any car luxury or otherwise is... because you just want it. There is no accurate way to justify it financially especially when you are buying with disposable income.

 

[TURBO2GO]

I think NSX owners as a whole are a really spoiled bunch when it comes to depreciation lol... and many aren't quite aware of just how much other cars depreciate and what they actually cost to maintain. It is BEYOND me why some will go and buy an older Ferrari for example and make it a garage queen and pay for all this maintenace and never drive the car when they could be driving an NSX. Note everyone is saying it will lose value "if the economy crashes". Yes... along with everything else. I mean that is your worst case scenario. I tell all my friends... buy a clean used NSX, drive it, sell it for the same or more. Free exotic car rental. There is no other car with this combination of being this good a car, with this little maintenance, with this kind of appreciation in value. Add to that the rarity.... people pay through the nose to have something rare. It's why someone buys an Aston over a 911 for example. Why someone pays so much for a "special edition".... it comes with the NSX for free.

 

[Zmoney]

You shouldn't lose a penny. Like others say, if you buy right, keep miles relatively low, and keep it clean, it will hold its value. I for one think the NSX market will appreciate even more when the new one hits the streets. The buzz will be even stronger and people will see the 150k+ price tag, and naturally look at the older model.

If your lucky enough to get a unique color combo in stock form, you should see an even healthier appreciation.

 

[bullithollywood]

I think your desire to want to buy a car that, while fundamentally a toy, is a purchase that will hold its value or even appreciate is perfectly rational. Why wouldn't you unless you have more money than sense. For most people I think knowing that makes you feel better about laying down a lot of cash for such an non-essential purchase as a classic sports car. From a purely subjective "Return on Assets" determination ( ie fun/memories per dollar invested) you really can't beat buying a good NSX!

 

[VR4Rob]

While I don't expect any significant appreciation, I did consider how my money invested would fare over the next few years when I purchased my NSX. For what I gave, I could have bought a lot of really cool and nice stuff (example: 996 Turbo, 997 Carerra S or almost new 981 Cayman S), but none were as cool as an NSX and neither are going to hold their value as well. Like many have said, it's almost impossible to consider any car a true investment... but for an expensive toy I consider the NSX a pretty safe place to put your money.

 

[JD Cross]

A small point to the OP.
I think what you really mean is buying a car that is fully depreciated rather than a car with no depreciation.
The only cars that have no depreciation are sitting unsold on showroom floors.
Depreciation starts when they hit the road and in most cases keeps going until the car hits the auto wreckers.

For some cars we know that at some point in their life, market demand increases over available supply and the downward price curve slows or stops and may reverse into appreciation.
My NSX, which I bought new, is about 55% of its new value so still has depreciated from my point of view.

In the case of the NSX today, where else can you acquire a mid-engined, all aluminum reliable sports car for todays NSX market price?
Because the NSX is Japanese it never seemed to have the same cache as the European marques and it, in my view, depreciated well below its value for money point.
In short it became undervalued.

I think at this point its low price attracted a younger group of buyers who came up through the Civic and other Japanese marques.
It seemed that this started the trend to heavily modded NSX's in keeping with their owner's heavily modded Civics etc. that preceded their NSX and continues to some extent today.
While I have no idea of the numbers I think a significant number of NSX's were modded to the point of no return and so also significantly reduced the number of stock/near stock examples.

Today I think a turning point has been reached.
First the NSX has, over time, has gained a lot of respect from buyers who wouldn't have considered the NSX previously so demand has been rising.
The lower number of stock/near stock units that are available has, in my view, contributed to a rising price.

I base this on observing that over, say the past year, heavily modified NSX's are either not selling or selling with little or no return for the money spent on modifications.
I'd not be surprised to see stock/near stock early coupes reach $50 K in the next five years.