Quote:
Originally Posted by Eiremon
Yikes, I think I'll stick to index funds and keep my own 1M which I can actually drive.
Cars are not good investments - 98% of the time they will underperform other assets. $50k invested in the S&P in 2011 would have at least doubled by today. The winners in the 1M game are those owners who have driven their cars 10-20k+ miles and had the value go up a little. You enjoyed the car while preserving the capital. Those who bought these and put 3-5k miles on them trying to maximize their return - you would have been better off elsewhere  |
Some experts say otherwise: "According to the Knight Frank Luxury Index, whilst they may only provide a 2 per cent rise on initial investment after twelve months, cars return an average of 334 per cent over ten years."
If that is the case, which is easier, finding the right car to invest in or the right stock? Is the 1M a good invetment? Based on the $84k investment level this one would have to be worth $280k in ten years to meet the average. Hope so, but i find it hard to believe that it will.
This article offers a similar opinion:
https://www.thestreet.com/lifestyle/...tocks-14650873
However, if this is an investment strategy you are considering, be sure to make it a small percentage of a large diversified portfolio.