Supra Investment

[formatzero]

Whats the thoughts on Supra values continuing to rise in the years ahead (all models)? or are we now at the top of the investment ladder.

[MrGRT]

Cristal ball time. Will appreciate a touch more I think but not massively

 

 

[AC93]

I think they've had their big jump now, but will still continue to rise for a while. Next up will be 90's Evo's and R34 GTR for when they turn 25 and American inflate the market again.... hence why I bought an Evo 6 2 months ago

[Pete]

They'll all be minimum of £50k by November 11th...around 2:30PM.

[j_jza80]

They aren't likely to be a good investment, if you're expecting some sort of financial gain. Your insurance, running costs, maintenance etc will likely cost in excess of any gains via appreciation. On the plus side you can't drive bitcoins, and at least you're likely to have something left by the end of it. Unless you crash your Supra, in which case the crypto-currency analogy is spot on

 

However, as a bit of fun and a hobby, it will be far easier on the pocket than many other cars.

[j_jza80]

*my caveat being we are likely on the verge of another global recession, which may have a significant impact on the prices of relatively affordable tangible commodities.

[AJI]

I've been following Supra prices since I sold mine a few years ago.

Amazing how people (or the market) have suddenly expected them to be much higher value than what they were just 3 years ago.

(Yes, I know, I should have kept hold of mine ! but it was time for me to move on)

 

Its a two-edged sword in my opinion, because although MkIV Supras are, and always will be great cars, and higher prices go to provide some comfort for existing owners, it is however only the pristine original/unmodified examples that will genuinely have the high values that are seen recently. Such cars are the collectibles that will retain their price and even appreciate. As such they'll also rarely get used.

 

So I think a lot of people are being ripped off at the moment with adverts stating "appreciating classic" and the like, and many buyers will also be unlikely to sell on for their expected new higher price (profit) once the market realizes that for the money paid you don't really get value for money.

Considering most MkIVs are up and over the 100,000 mile mark often with tired suspension, bushes, turbos, engine internals, gearboxes etc. that may be hard to source when they eventually go bang.....and when 2nd hand 20 year old plus cars are being sold for prices approaching what they were when they were brand new.

 

 

The rise of 2nd had car prices across the west has mainly been driven (excuse the pun) by low or non-existent savings interest rates.

With no interest rates for savers, there is pressure to put one's wealth in to assets. Which, as the flow of wealth transfer pours in to assets, this drives up asset prices as demand grows.

However, when saving interest rates come back to normality (whatever that could be deemed as), with a meaningful positive rate, then the flow of wealth will quickly drain from assets and back in to bank accounts.

This is because bank account savings are the most safe method to store wealth - assuming you divide your wealth across various banks that guarantee the £85,000 FSCS protection.

 

Assets are not considered "liquid", whereby one can not simply go to a bank and hand over an asset and have it replaced by the amount of cash that you want for it. An asset is only converted to "useful" money if and when a buyer is interested and hands over the money you want for it - which is no guarantee to say the least.

 

 

Governments and central banks are very much under pressure to push the global trend back towards meaningful positive interest rates as this gives governments a useful 'lever' to control national financial policies.

So when that time comes, there will be a whole load of people sitting on assets that they will not be able to sell anywhere near the price they paid for them.

 

Its just something to bear in mind when currently looking at the market at inflated car asking prices. Don't be too tempted by the line of thought "you only live once", therefore I must buy it. The best purchases are those that you patiently wait for, whereby the old adage of "good things come to those who wait" can ring true.

 

 

My reply sounds a little negative and apologies if it does. Having taken a step away from Supra ownership and currently looking to buy a V10 R8 I'm being very patient to see what prices are doing.

I think brexit may have an effect if things take a down turn for the UK economy, because that will push up certain asset prices even more.

However, if brexit goes without major issues then I think the UK economy will pick up quite quickly and the bank of england will be in a position to roll out a program of interest rate increases. Which will then see people turning away from many assets and back to bank accounts (and financial products) for wealth storage and investment. When this happens it is expected that 2nd hand car prices will drop as the demand will significantly drop away.

 

 

So coming to the question of the OP (at last!) - its quite a hard thing to answer at the moment.

I think the months after brexit will be a turning point. Can the UK economy pick up, and especially pick up at a faster rate than the EU? - as this will drive investment in to the UK in this part of the world.

Then will the bank of england look towards increasing interest rates to curb people's spending rates?

 

In the meantime every car seems to be sold on the promise that it is an "appreciating investment", but I would just say "buyer beware" on this - and then look at just how much money is being asked for the condition of the asset that you are buying.

If the car is to be bought as an "appreciating investment" then you'll likely be under pressure to not put any additional miles on it and leave it in the garage all year.

But if the car is to be used, then you'll have to consider how to treat it as it continues to age etc.

 

One thing that does help MkIV Supra prices is the total failure of Toyota to bring to market the MkV as a successor to the MkIV Supra. Instead of producing the FT-01 they made a Z4 hard top instead.

[Michae86l]

I'm sure they'll go up, I think perhaps they're almost peaking. Any insurance maintenance etc costs far exceed the financial gain of investing in purchasing one.

[Scooter]

I'm sure they'll go up, I think perhaps they're almost peaking. Any insurance maintenance etc costs far exceed the financial gain of investing in purchasing one.

 

They almost certainly will now I think (but you never know) however loads were bought pre 2014 when any 10K+ sales were rare and 5K and less purchases not that uncommon, those weren't "investment" times but anyone who held onto theirs will have generally covered all/significant costs since, except perhaps fuel, but then you only realise that if you sell.....so I always maintain that for just owning/driving a Supra the old days of lower prices (including parts prices) was a better time!

[rider]

They almost certainly will now I think (but you never know) however loads were bought pre 2014 when any 10K+ sales were rare and 5K and less purchases not that uncommon, those weren't "investment" times but anyone who held onto theirs will have generally covered all/significant costs since, except perhaps fuel, but then you only realise that if you sell.....so I always maintain that for just owning/driving a Supra the old days of lower prices (including parts prices) was a better time!

 

Yes and no with that. if the cars weren't worth what they are today then they wouldn't be worthwhile maintaining and pretty much all but a few Supras would have been scrapped already or well along their way there.

[Scooter]

Yes and no with that.

 

It'll vary person to person but for me I was just always keen on the Supra and had them almost continuously from when they became affordable to me (close to 20 years now!). Some getting scrapped and less people maintaining/refurbishing them would perhaps mean better parts availability may be even reduced parts prices through lack of demand (wishful thinking!). It was always an under the radar car for numerous reasons (mainly because 'Toyota') and ownership was much more simple then!