Can you make Money Buying Exotic Cars?

I talked about debt the other day and why I love to use debt to make more money. I even got a loan to buy my 1999 Lamborghini Diablo. Someone commented asking if I was worried about using debt on a depreciating asset. I replied that my cars don't go down in value, they go up.

https://steemit.com/@investfourmore/is-it-better-to-use-cash-or-loans-when-investing-in-real-estate

I bought my Diablo in 2014 for $126,000 and it is worth close to $250,000 now. I have a few other cars that have increased in value as well.

Why did my Diablo jump in value so quickly?

I will be the first to admit I did not expect the car to increase in value so much. I thought I got a great deal, but I did not see the value increasing that much. I actually wrote an article on it when I bought explaining my thought process.

https://investfourmore.com/2014/07/01/able-buy-lamborghini-diablo-real-estate-business/

There have been a number of cars that shot up in value:

-Lamborghini Countach
-Porsche 930
-Aston Martin V8
-Maserati Ghibli
-Ferarri 328

Many other cars have seen huge increases in value. A lot of the cars are from the 1980s and 1990s. Part of the value increase is the kids growing up drooling over those cars (like myself) can afford them now. With increased demand comes higher prices, especially when they only made a few hundred of those cars a year.

Exotic cars also tend to have a predictable depreciation schedule. They often lose a ton of value the first few years, but then level out and in some cases start going back up.

Can you make money with exotic cars?

I would not rely on any car going up in value and they could go down as well. You can get a great deal on cars just like you can with houses. It is possible to buy cars at wholesale prices, drive them for a while and sell for a profit. Many dealers make a living doing this. I personally like to hold on to my cars. I also have a Lotus Esprit V8, a 1986 Porsche 928, a 1991 Mustang 5.0, and I am buying a 1981 Aston Martin next week. I think I got great deals on all these cars and they are worth more than what I bought them for.

https://investfourmore.com/2017/03/13/i-bought-a-lotus-esprit-v8-thanks-to-real-estate/

Be aware that exotics are expensive to repair! While you may not lose money in depreciation, if you drive them a lot you could have costly repairs. I spent $8k repairing the front shocks on my Diablo. It is all still worth it to me!!

There is a really cool program here that teaches people how to get a good deal on exotics.

https://exoticcarhacks.samcart.com/referral/0caORjfi/945700