Top 5 New Luxury Car Investments That Will Make You Money


Top 5 New Luxury Car Investments That Will Make You Money

Classic cars have proven to be viable alternative investments, providing a turbo boost for many portfolios and delivering strong returns over the long haul. Indeed, many manufacturers have seen the value of their cars increase stratospherically through the years. However, what a lot of people don’t know is that certain new cars can also increase in value almost immediately.

Published on 28 July 2017

The conventional wisdom is that as soon as you drive a new car off the lot, it depreciates substantially. This may certainly be true for most cars and logically, you want to keep your mileage as low as possible to attain the best returns no matter the vehicle. However, if you choose wisely and have the purchasing power, new car ownership can actually be a smart and feasible investment.

So, what should you look out for? Typically, the best way to make substantial returns on new luxury car investments is to purchase a vehicle in high demand for the lowest price possible. Attaining the vehicle early on in its sales cycle and directly from the dealer is the key to success. Building up a good relationship with the dealer will help in staying ahead of the game – especially when it comes to knowing launch dates and receiving pre-order priority.

Cars can be in high demand for several different reasons. However, as an investor you should look at the price, marque, desirability of the model and how many were built. For example, if you aim to invest in signature models that will be produced in a limited run, then there is a higher potential for an upside to your new luxury car investments.

Below we look at five new luxury car investments with the potential to make you money from day one.

Recently released 991 version of the GT2 RS is the fastest and most powerful road-going 911 ever built.

Porsche 911 GT2 RS

Special performance editions of Porsches have seen their values increase in recent years, especially when it comes to the iconic 911. While the GT3 has been very popular since its first iteration in 2000, the recently released 991 version of the GT2 RS is sure to be the cream of the crop. It is the fastest and most powerful road-going 911 ever built and will undoubtedly be for some time.

The previous 997 GT2 RS was limited to a run of just 500 units worldwide and prices have increased dramatically on the second-hand market. For example, you could pick up a brand-new model in the US for around US$245,000 back in 2011. Attempt to find one today and you’ll be forking out around US$500,000 (a 104% increase) without the guarantee of low mileage at that price.

The new vehicle is better in just about every way and, compared to standard Carrera models, will be built in far fewer numbers. It uses the latest racing technology and exotic materials that previous performance-oriented 911s can only dream of. Perhaps not as few will be built as the limited run 911 Turbo Exclusive, although investors should remember that the GT2 RS will always be a more desirable car, due to it being at the top of the 911 range. It will also be the last hurrah for the 991 before the next generation of the 911 rears its head. The list price in the US is just under US$300,000, so if the new GT2 RS stays true to form, expect prices to skyrocket over the next couple of years.

Only 10 examples will be available in Singapore, making the M4 Performance Edition extremely rare

BMW M4 Performance Series

Collectible BMWs come in many shapes and sizes. Petrol heads love M cars and have always fawned after M3s although that is set to change now that M4s have taken over the performance coupe segment from the M3 in BMW’s line-up. Special edition models such as the CSL have done extremely well over the years due to their desirable driving dynamics and sporting good looks. There are many new limited edition models available such as the M4 GTS, M3, and M4 CS. However, one model in particular has the potential to yield good short-term profits and a solid long-term investment.

Depending on where you live, BMW’s latest M4 Performance Edition is being released in limited numbers and many markets will not receive the vehicle at the same time or even at all. Back in 2015, BMW released the model in Japan and only 17 were produced. Now with a hike in power, Singapore is releasing a version of the M4 Performance Edition. Priced around S$433,800 (US$318,230), only 10 examples will be available in Singapore, making the M4 Performance Edition extremely rare and hence, an excellent investment for future returns.

The Edition 50 of the GT C Roadster will celebrate AMG’s 50th anniversary with a total of 500 being built worldwide.

Mercedes AMG GT C Roadster Edition 50

Mercedes has been producing aggressive performance-oriented cars for years with AMG and McLaren. While mass-produced models within the range have been great drivers’ cars, they’re not always ideal investments in terms of financial returns. However, in each of these ranges, Mercedes has a penchant for producing something extra special in the form of a limited-run model.

This year the AMG GT C Roadster Edition 50 is that extra special model we’ve been waiting for. The AMG GT is currently the only model range with a three-pointed star that’s produced exclusively by AMG and is by far its best performance two-seater. The Edition 50 of the GT C Roadster will celebrate AMG’s 50th anniversary with a total of 500 being built worldwide.

Previous special edition Mercedes exotics have been producing solid returns for investors. The 2015 SLS AMG Final Edition coupe now commands as much as US$300,000 or around US$100,000 (48%) over its original US$202,105 price. Go back even further to a collaboration Mercedes had with McLaren – the special SLR 722 Edition coupe – and you’ll see a significant increase in value of almost 60% from its original price of US$480,000 in 2007, to US$762,000 today. Not a bad ten-year investment.

Only 1,000 will be built with production ending in 2020, making this car extremely rare.

Ford GT

Ford will always bring back memories of the legendary Mustang, pick-up trucks, and affordable family cars. However, Ford also makes the GT, a beautiful exotic supercar built specifically with the purpose of beating Ferrari at Le Mans. 50 years after their original GT40 brought them victory, the latest GT did it again at the 2016 endurance race.

As all Le Mans cars in the GTE Pro class must be based on a street car, it’s possible to purchase a road-going version. Only 1,000 will be built with production ending in 2020, making this car extremely rare. If you weren’t selected by Ford after an extensive application process, you may have to pick one up second-hand whenever Ford allows the original owners to sell their vehicles. That’s right, Ford is restricting buyers contractually from selling their vehicles for a specific amount of time. With a starting price of around US$450,000, it is by no means your average Ford purchase. However, the previous Ford GT, sold last in 2006, is now going for as much as US$475,000 (or 216%) over its original purchase price of US$150,000. If you have the funds to invest, this could be the deal of the decade.

Get your hands on a limited edition or special performance version and you’re basically guaranteed investment success. (488 GTB pictured)

Ferrari 488 “GTO”

Arguably the brand that has benefitted the most from an uptick in collectors is the legendary marque with the Prancing Horse. Even regular models command premiums on new vehicles. If you’re able to get your hands on a limited edition or special performance version, then you’re basically guaranteed investment success. Due to be officially launched next year is the special edition of the 488 GTB, a mighty V8-powered beast thought to have the hallowed “GTO” moniker. If precedence is anything to go by, this will be a lighter, more powerful and faster car. It will also be more expensive, but on the resale market it should deliver even heftier returns. Taking a previous limited edition performance Ferrari, the 458 Speciale A, as example, only 499 were built with an original list price of around US$300,000 – although the first example out of Maranello was sold at a charity auction for US$900,000. Today, you can pick one up for around US$700,000. That’s more than double or approximately 133% back from your original investment in a few short years.

Like the 458, purchasers of the new 488 “GTO” should expect significant returns. The car is set to be released in 2018 and if you’re one of the lucky few to be offered the opportunity to purchase straight from the dealer, don’t hesitate to take your cheque book out.

What’s Affecting Your Money?
Sign up to receive investment news and ideas