E30 M3 as an investment car?

[CrusherCurtis]

We've all heard stories about some Ferrari or other that was worth $30k in the 80's that's worth $400k now

Could these be $50k cars in 10 years? According to some members here they were $10k cars around the year 2000.

Check this out:

http://cgi.ebay.com/ebaymotors/1988-BMW-M3-E30-COMPLETE-RESTORATION-/110977017981?item=110977017981&ViewItem=&forcev4exp=true#ht_38368wt_1165

A lot of us here can probably restore e30 m3 (s14 aside). Granted it may not be to this level, there are a ton of nice e30's on this board that aren't even m's that could be considered good restorations.

Is the m3 a good investment car?

[Herr Faust Schinken]

I want say yes but I don't think I would buy one just as an investment bmw built the car to be driven... Hard ,and not just sit around and be a rich older gentlemen's garage queen so if you going to buy one drive it

[ttrousdell]

supply and demand. Seems like e30s are becoming more collectable. They are not making any new ones and there has to be a few that are parted or totalled every year.

[10Toes]

Non M control arms

[Kevinl]

It is an investment car but it needs to be kept mostly stock to command the most money.

Also like the second poster said it would be too hard too not want to drive it

[carfantiti]

^ disagree Yes it is a investment car and does not have to be stock to get highest value.
If you do 80's upgrades or evo options can increase value.Their is some engine swaps that will get big money such as ,s54,s38 ect

[King Mufasa]

invest in a buisness if you dont have one,
invest in a education if you dont have one, or
invest in a wife that will pay up on the long run if you dont have one.

[cagedbunny]

Non M control arms

Actually, only the late E30 M3's had aluminum control arms; first couple years of production had the stamped steel arms.

[Stephen]

Is the m3 a good investment car?

By the time you add insurance, inflation, maintenance and storage to any m3, its a crappy investment unless the market really soars in the next few years.

But, it might be good enough that you can feel better about throwing lots of money at it.

[VinniE30]

Cars in general, e30m3 included aren't good investments when you consider all factors. Consider maintenance and insurance and other costs and how much value you can gain over time time you own it.
Stocks and real estate are much better investments if you do your research. It also takes research and work and patience to make money from a car investment too.
It's also not a passive investment. For example, I consider stocks a passive investment and real estate a less passive investment.(although not nearly as much as a full time job)
The thing is, investment usually implies making money from putting money into something without a lot of work.(at least somewhat passive) Wither you let the m3 sit in your garage and rot, or you drive it everyday, it's going to need maintenance work.

I look at my e30 as a very fun, unique daily driver, and the fact that it's cheap to buy and maintain as an additional benefit. I've spent a lot of money on e30s, but even still it's not as much as most new cars which you will loose a lot on if you sell it a few years later.

[10Toes]

Actually, only the late E30 M3's had aluminum control arms; first couple years of production had the stamped steel arms.

Did not know this.

Those are not stamped steel ;)

[nokincy]

Why are there four seat belt receivers in the backseat?

[NZM3]

Hi,
Like all investments you have to do due diligence and buy a good one which can be made to shine with minimal cost in stock condition with service books, low milage and low owners help.
For E30 M3- Avoid at all cost engine swap cars no matter what line they spin you.
Dave.

[RobertC]

I would personally say bad investment.

Seriously, take away the history and pedigree and what do you have? A 20+ year old German sports car. Although we can agree it is this history and pedigree that give the car its value.

The engines are expensive to fix or rebuild. Most are not rebuilt when you buy them. Painted, cleaned and resealed, does not count as a rebuild. Also they can still have rust, suspension issues.

I have done 2 recently that where both new purchases at about the $20,000 mark. Both ended up spending about $2,000 on top of the $20,000 price tag just to make them drivable.

And to what end? To sit in the garage? To be driven like a queen on the weekend? If you get into an accident, how much to fix it? If the engine breaks, how much to fix it?

Then after you have put all that money into the car plus the initial purchase price and go to sell it, do you really think your going to make a substantial gain over what you put into it?

No, it will be like any other car, you will be lucky to break even.

$50k car in 10 years? Buy a nice clean one today for $20, put another $5 in it to really dial it in. Put it in storage and never drive it for 10 years. Assuming nothing happens to it in that time frame, how much did it cost to store it? How much for insurance, whether car insurance or insurance on the building your storing it in, even if its your own house? How much is the building your storing it in cost? Even if its your own house, if its taking permanent space in the garage, your still paying a percentage of your mortgage for that space.

If your driving it for that 10 years, add up insurance, mileage depreciation, fuel costs, maintenance costs, etc... How much did it cost you over the 10 years, plus initial cost. How much profit are you going to make?

Obviously some folks in different situations will have more favorable results, but on average, its not an investment, its a liability. To site a couple other examples: The numbers presented are only loose approximation and cited for example only.

The 30K Ferrari 1980 that is now $400K. How much has that individual spent on the car? I am sure when it was purchased for $30k it needed a restoration for untold 10's of thousands of dollars. How much for insurance for the last 30 years, how about storage, other maintenance and costs?

I know a couple guys that restore old Ford Broncos. They might buy a ratty ass old 68 for $6K, then spend $20 thousand restoring over the next 2 years. Plus the cost of rent and electricity for the shop they restore it in, plus tools they may not have had to do the job. So in this case they spend $26K buying and restoring it and sell it for $50k. Not bad huh? $24K profit. Now deduct rent and utilities that it took over the 2 year period to restore it. Your net gain now drains down to about zero profit. Was it a investment, no. It was something someone does as a passion. In a investment sense, its a bad investment of labor and money. You lost 2 years and untold thousands of dollars, but you may have enjoyed the hell out of it for the last 2 years. Suppose you can't put a dollar amount on that, but again bad investment.

Like I mentioned, sometimes it works out better for some folks who may already have the foundation to be able to support such activity at zero to low cost and are able to make a profit on such expenditures of money and labor.

For the average man, cars equal liability, not investment. Generally speaking of course.

You can pick this all apart as you please, but in the end, sports cars are not a investment with good returns.

You have to think about every dollar and labor cost that went into the process from the time of purchase to the time of cashing out on so called investment.

[DrJosh]

Lol at consulting r3v for financial advise. OP I'd suggest looking elsewhere.