Who's buying the Last Falcon to Mothball it?

[cro142]

The interest you pay on a stored car that you paid cash for is the "Opportunity Cost".

This is the interest you will not get if you had invested this say $50K in another way to generate a return of, say, 5% to 7%.

$50,000 invested at 5% is worth $335K after 40 years.
$50,000 invested at 7% is worth $699K after 40 years.
Oh, the power of compound interest over long time periods!
Will a car do as well? Who knows.

But hey, who cares if you don't need the money and you choose to store a car.

I think I would prefer to drive it, as it will always be tough to get a real financial return on a stored car.

[blackf6]

That bloke that bought the Munro. Peter Champion I think. Paid more than 62g. Blokes are dreaming about storing rust bucket bombs.

[Deo]

Originally Posted by XB GS 351 Coupe

have not paid a cent in interest on any of them

Few people are fortunate enough to not have a mortgage...

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[Stefan]

At the end of the day if you have the cash and like the car buy it, if you like to keep it pristine, and look at it in the garage while you chugging a beer good too.

If money is the motivator, there are better ways.

A 6 cylinder XB coupe bought for 5K in 1983, then almost written off, then restoring it twice now worth 40K is not in an investment at all and not even a good return, more likely a huge liability money wise, your dad was not wrong that money invested would be better now no question. But the car has sentimental value that can't be bought. That does not make buying a new 50K car butting it on blocks a good idea (financially).

[Cobrajet03]

As an investment NO way.

[Beastie]

Interesting comments....

To the OP, If you bought THE LAST Falcon ever made, be it a Turbo or 8 etc, then I would say your decision has some merit.

Unfortunately, I don't think that the general public will have that opportunity?

Otherwise, good luck with your decision, but to answer your question - not me.

[Windsor220]

I'll always have a soft spot for Falcons but in 20 years time who would want to buy it for a lot of money? There probably wont be many that care anymore and with the amount of debt people have these days probably couldn't afford it anyway. Just drive the thing

[Sabantien]

Some people buy stamps and never put them on an envelope to post a letter, so I guess if you have the money and want to do the same with cars, go nuts.

People enjoy things in different ways, although personally, i'd want to drive it.

[xisled]

Originally Posted by cro142

The interest you pay on a stored car that you paid cash for is the "Opportunity Cost".

This is the interest you will not get if you had invested this say $50K in another way to generate a return of, say, 5% to 7%.

$50,000 invested at 5% is worth $335K after 40 years.
$50,000 invested at 7% is worth $699K after 40 years.
Oh, the power of compound interest over long time periods!
Will a car do as well? Who knows.

But hey, who cares if you don't need the money and you choose to store a car.

I think I would prefer to drive it, as it will always be tough to get a real financial return on a stored car.

You ha tn factored in the tax you would pay on the interest you earned so the figure would be much lower.

[Sprintey]

Originally Posted by Smoke Pursuit

Yes and paid a motza on insurance, rego and interest to keep something that you can go and buy for 26 grand with 100,000 kms on it. Still the same car.

BF Cobra owners are the kings of this kind of behavior, most of them will have to be burried with their cars!

Actually, it was tradition for Viking Chieftans to be buried in their longships, with other possessions, food; even a woman to volunteer to go to the grave with them (fascinating and disturbing ceremony) - a BF Cobra is fair game.

[blackf6]

Originally Posted by DeJaVu GT

That bloke that bought the Munro. Peter Champion I think. Paid more than 62g. Blokes are dreaming about storing rust bucket bombs.

Phillip Mance was his name. Car was auctioned for $188,000.
Good luck selling that buddy.

[NAK302]

Originally Posted by cro142

The interest you pay on a stored car that you paid cash for is the "Opportunity Cost".

This is the interest you will not get if you had invested this say $50K in another way to generate a return of, say, 5% to 7%.

$50,000 invested at 5% is worth $335K after 40 years.
$50,000 invested at 7% is worth $699K after 40 years.
Oh, the power of compound interest over long time periods!
Will a car do as well? Who knows.

But hey, who cares if you don't need the money and you choose to store a car.

I think I would prefer to drive it, as it will always be tough to get a real financial return on a stored car.

i'd love to know which investments would nett you those sorts of figures at the moment.

[Stefan]

Originally Posted by NAK302

i'd love to know which investments would nett you those sorts of figures at the moment.

Superfund for 40 years...on average been doing alot better than 5%.

50 k down on a unit, rental return and capital growth an average far exceed 5%

[Deo]

Originally Posted by NAK302

i'd love to know which investments would nett you those sorts of figures at the moment.

We aren't discussing the moment, we are discussing the next 20-30 years.



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[marty351]

Last aussie falcon... hmmm,
Musem piece.

[Sleek the Elite]

Hiding it away for years isn't the way to go.

Given you already have a low km's falcon as your daily drive, using the new one sparingly and keeping low km's on it makes sense.

I've got 220,000kms on my BA XR6T. I've got no intention of trading it though because it still looks great and runs beautifully.

I'll keep it as the daily drive but will look to pick up another that I'll maybe use on weekends with the intention of it eventually becoming the daily drive.

[cro142]

Originally Posted by NAK302

i'd love to know which investments would nett you those sorts of figures at the moment.

My Super Fund has mostly never netted less than 5% (except 2008), and in one great year (2011 or 2012) it netted 26%, then 13% the year after.
Last year was 7+%. So I think my use of 5-7% over time is reasonable.

Correctly it does not include tax, but also I don't pay much tax due to legit investment deductions - this will depend on your situation.
It is hard to figure exactly, but a car investment is much more difficult to predict. It also has associated costs like storage space, insurance, maintenance etc.

Most particularly the future value of an investment car is extremely hard to predict, and can be highly volatile. For example, if you had kept your brand-new unused GTHO for 40 years or so, and sold it in 2006-2007 you would have done well. But if you had kept it until 2008-2009 you would have been unhappy to try and sell.

One of the great values of a car investment is that you can drool over it in the garage any time you like, whereas financial investments are just plain boring.

I would still prefer to drive the car and enjoy it.

[Stefan]

Originally Posted by cro142

My Super Fund has mostly never netted less than 5% (except 2008), and in one great year (2011 or 2012) it netted 26%, then 13% the year after.
Last year was 7+%. So I think my use of 5-7% over time is reasonable.

Correctly it does not include tax, but also I don't pay much tax due to legit investment deductions - this will depend on your situation.
It is hard to figure exactly, but a car investment is much more difficult to predict. It also has associated costs like storage space, insurance, maintenance etc.

Most particularly the future value of an investment car is extremely hard to predict, and can be highly volatile. For example, if you had kept your brand-new unused GTHO for 40 years or so, and sold it in 2006-2007 you would have done well. But if you had kept it until 2008-2009 you would have been unhappy to try and sell.

One of the great values of a car investment is that you can drool over it in the garage any time you like, whereas financial investments are just plain boring.

I would still prefer to drive the car and enjoy it.

Spot on, the only other problem with cars is storing cost, maintenance cost, If I bought a Phase 3....20 years ago I would not want to sell it, if I don't sell it I don't get the benefit of the price rise. I can't use the equity in the car either, it gives no return (cash flow) just costs money.

Now the reality a Phase 3 is a special car, it is a race homologation special, a XR Falcon ute is not...

But mothball away, if it is for preservation fantastic, I'm glad someone is willing to do it.

[GO FURTHER]

If anyone thinks their FG, FGX .. XR6T, XR8 or the last "sprints" are going to be a good investment and will appreciate to be worth a tidy sum in 20, 30 or more years, they need a reality check.

You cannot compare the increased value of some of the older aussie muscle cars of 40 years ago like the GTHO's, Chargers, Monaros, etc, and compare the appreciated returns as a guide to our modern day cars.

The difference is sumed up in that saying we've all heard, "classic not plastic".

Modern day cars are all computers on wheels, emission controls, and complex engine management systems. Who knows whether these ECU's and other electronic parts will be available, yet alone anyone in 40 years with experience in repairing them.

Lets face it, apart from us few Ford car enthusiasts, the general car buying public are not interested in buying new Falcons today.... Do you really think these same people or their kids are going to want to pay big money for an FG in 30 years from now?

Do you really think they will want one, because it could do 0 to 100 in 5 secs and 300KWs when their electric Teslas of the day will do it in 3 seconds?

They won't share the same nostalgic value we older boomers had, because they never owned, drove or watched Moffat win Bathhurst in a GT that the common man could buy from a Ford dealer in that era, but never could afford it then, and so are willing to pay big money in their older years to relive a dream of their youth.

As someone recently posted on these forums a few days ago, a sentence that really stuck in my mind ... As you get older and in your fifties you start to realise "there are more days behind you....than days ahead before you fall off the perch".

So buy that FG, FGX .. XR6T , XR8 or other Aussie muscle variant, drive it daily, have fun and look after it.
As that banking ad on TV said... "A ship in the habour is safe.... But that's not what ships were meant for!"
Your Falcon was meant to be driven and enjoyed, not bought and blocked up in a shed like a caged bird.

[Romulus]

Originally Posted by goo33

Seriously considering an FGX XR6T to put it on blocks.

That way I'll get through Black October with minimum trauma.

Why not. Last time I checked this wasn't an investment forum, I'd dismiss most remarks as commentary.

I have a mate who's ordering the last month SS-V Redline wagon for the same purpose as you. Good luck with it.

I'd like to purchase an 10/16 build winter white G6E Turbo and do the same thing.

[Trump]

Originally Posted by xisled

You ha tn factored in the tax you would pay on the interest you earned so the figure would be much lower.

And the fact that every bank is leveraged to the hilt and then some. There are zero guarantees that they will be able to pay interest for that length of time.

[Deo]

Originally Posted by Loud_Noises

And the fact that every bank is leveraged to the hilt and then some.

Actually leverage is the reason we need banks to exist.

Originally Posted by Loud_Noises

There are zero guarantees that they will be able to pay interest for that length of time.

The commonwealth government guarantees them!



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[Express]

Originally Posted by Romulus

I have a mate who's ordering the last month SS-V Redline wagon for the same purpose as you. Good luck with it.

It makes me wonder why he chose a wagon which are historically been less collectable than other variants.

What’s his reason/goal for mothballing it?

[Carrion]

Each to their own.



Hulk would be proud if he started this thread

[Trump]

Originally Posted by Deo

Actually leverage is the reason we need banks to exist.
The commonwealth government guarantees them!



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Their guarantees aren't worth the paper they are written on. But I digress.

[olfella]

If ever anyone has been to Forbes, NSW they will come across McFeeters Car Museum. They have a new GT F mothballed. I think it is more about preserving and sharing the past more then investment etc for them. If you are out that way, well worth a look.

[Stefan]

Originally Posted by olfella

If ever anyone has been to Forbes, NSW they will come across McFeeters Car Museum. They have a new GT F mothballed. I think it is more about preserving and sharing the past more then investment etc for them. If you are out that way, well worth a look.

The GT-F? Or are there actually cars WORTH looking at?

Plenty of FGs at the local Coles today....

[cro142]

Originally Posted by Romulus

Why not. Last time I checked this wasn't an investment forum, I'd dismiss most remarks as commentary.

No, it is definitely not an investment forum.

But hey, people are talking about whether or not a mothballed FG-X will be worth anything useful in 30 to 40 years.

That sounds like investment talk to me!

I think that the proposal to mothball a car for this period of time carries with it the expectation that it is "good for having", and can be enjoyed for that, but also it carries an expectation that is will be worth a bit at the end.
That's investment talk.

I still like the option of driving it best.

[malazn mafia]

Originally Posted by Polyal

Are you allowed to be buried in a car?

Anyone know if heaven has motor vehicles? Just hope there are no Toyotas, Holdens or Hyundais up there...

[olfella]

Originally Posted by Stefan

The GT-F? Or are there actually cars WORTH looking at?

Plenty of FGs at the local Coles today....

Of course the are - but it depends on ones taste so probably not your cup of tea BUT others will find it worthwhile.