Stocks Are Uncertain But Driving A Porsche Is Consistent Fun

 

Porsche 356A Speedster

Porsche 356A Speedster photo courtesy Gearpatro.com 

Under the heading of “in case you missed it”, Rim Blades USA looks at investing in the stock market versus investing in classic cars, in this case, Porsche.  I have reprinted in almost its entirety as an answer to the always asked questions about stuffing 401K money into (insert your car here), and what that choice might mean to your financial future.

A smart, unemotional piece that clearly defines enjoyment vs investment.  Your take-away should be: These calculations do not account for vehicle maintenance nor insurance costs for the cars.

A new graphic from RimBlades USA proves that while investing in a Porsche can be a lot of fun, a stock market investment usually offers better returns. Based on recent auction sales, the folks at RimBlades USA looked at the original MSRP and current value of four Porsche models. The results prove that although a Porsche rarely appreciates enough to compete with stock market investments, at least one model shows promise. These results were calculated using a dollar amount invested into Standard & Poor’s (S&P) 500 Index, a series of funds commonly used as a benchmark for the U.S. stock market and comparing it to the same dollar amount used to purchase the vehicle.

“Playing the stock market always has some ups and downs,” says Adam Dangleman, director of RimBlades USA. “And the good news is that a 918 Spyder’s value is headed in the right direction. The bad news is selling your classic Speedster isn’t adding much to your retirement savings.”

 

S&P 500 vs Porsche

S&P 500 vs Porsche

Using models from 1956 through 2015, here’s how the team calculated the return on these investments:

  1. Start with the MSRP of each vehicle. These numbers are based on historical or actual vehicle records.
  2. Take that MSRP amount and consider an investment placed into an S&P fund on January 1 of the car’s model year.
  3. Take the 2018 value, or the price it fetched at auction, for each vehicle. Subtract the MSRP from that number. There’s the return on the car.
  4. Using the DQYDJ S&P Periodic Investment Calculator, the team calculated the return of the MSRP investment that would have been deposited Jan. 1 of the specific year. The chart represents the returns on the S&P investments as of Jan. 1, 2018.
  5. The caveats: These calculations do not account for vehicle maintenance nor insurance costs for the cars. The calculations for the stocks do not include taxes.

After doing the calculations, the results are highlighted on the graphic: If you paid the $3,000 MSRP for the 1956 Porsche 356A 1600 Speedster, you could sell it today for a profit of $305,000. However, that same $3,000 could’ve become $617,457 if it had gone into the S&P.

  • A 1997 Porsche 993 Turbo has only increased its value by a little more than $100,000. A $79,225 stock investment made in January 1997 could yield $382,192 today.
  • Despite the steep, original MSRP of the 2004 Porsche Carrera GT, it sold this year for only $715,000. Putting $410,000 into the S&P at the beginning of 2004 would result in a balance of $1,249,368 today.
  • The gains from a 2015 stock investment are just over $74,000 less than the appreciation on a 2015 Porsche Spyder.

“If you can’t have a Porsche in the driveway and money in your portfolio, it’s important to remember that playing the market can be unpredictable,” says Dangleman. “But if you invest in a Porsche, you’re at least guaranteed a consistently great driving experience.”

About RimBlades USA:

RimBlades USA offers RimSavers, a premium product that protects alloy wheel rims from curb scrapes and damage. While typically installed on alloy wheels, RimBlades and RimSavers can be fit to classic steel wheels, modern chrome wheels, motorcycle wheels, and more. Both products are made from a tough, proprietary material that can prevent or reduce curb damage. Learn more at https://www.rimbladesusa.com

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About the Author: Dave Miller

Dave Miller With Lotus GT
Dave Miller drives the fastest, coolest, sexiest cars on the planet. He travels the world uncovering the hidden gems in luxury transportation, meeting the owners, and connecting with extraordinary car enthusiasts. Dave is a member of the Midwest Automotive Media Association and writes for various publications. In addition to DriveWithDave.com, you can follow Dave's adventures via Drive With Dave Facebook, Instagram and Twitter and tune into the Drive with Dave Podcast via iTunes, Stitcher or Soundcloud.

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