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Thread: Any exceptions to the rule.............??

  1. #1
    Senior Member pavo_rodddy's Avatar
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    Any exceptions to the rule.............??

    Hi all,

    Are there any exceptions to the rule of depreciation with kitcars?? Sure some older ferraris are fetching millions but those are at the peak of rare ya know....Being that the kamala is a fairly new component car, i.e. a new design and all, what do you think it's values may do within the market over time......?? What kind of info would anyone need to descern (sp) the problem at hand?? THANX ALL for any help!!!!!! 8)
    Me, I sell engines, the cars are free.&nbsp; I need something to crate the engines in.... Enzo Ferrari......<br />Today they are called garage&#039;s, yesterday, they were stable&#039;s.&nbsp; Eric Jacobsen...

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    Senior Member FerrariFan's Avatar
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    Re: Any exceptions to the rule.............??

    Nowhere but down. The only sure fire way to lose a lot of money is to build a kitcar! ;D
    Even the longest journey begins with the first step.

  3. #3
    Senior Member pavo_rodddy's Avatar
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    Re: Any exceptions to the rule.............??

    Hi all,

    LMAO!!!

    Are you or anyone here privy to the knowledge as to why car guys build up thier cars knowing full well they will more than likely lose money in the end.... Though the only concelation (sp) to the rule is not selling to test pilots, but to another enthusiast..... ;D

    Course i'll despell part of the myth:* *"Every knight in shining armour needs his/her noble steed"!!* Like any word any idea can and does have more than one meaning to it.... And i am interested in learning what others may have come accrossed in their lifetime too...

    edit: Had to add the her, to his/her.......
    Me, I sell engines, the cars are free.&nbsp; I need something to crate the engines in.... Enzo Ferrari......<br />Today they are called garage&#039;s, yesterday, they were stable&#039;s.&nbsp; Eric Jacobsen...

  4. #4
    Senior Member swoodard23's Avatar
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    Re: Any exceptions to the rule.............??

    I think anytime you build a kit or buy a new turn key you are going to lose money. I think if you were to buy an almost complete project you would be best off. I think if you buy a completed used porsche 356 for 10K you could probably sell it a couple of years later for 10K. If you bought a new beck version you will probably spend $25K and only get $15K for it a couple of years later. It all kind of depends. The kamala is kind of a weird concept but I would look for one used. I can't imagine retaining its new value or probably anywhere near that.
    Scott

  5. #5
    Senior Member FerrariFan's Avatar
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    Re: Any exceptions to the rule.............??

    Seriously, it depends on your skills as a builder. If you are a jack of all trades and don't count the cost of your own labor in the cost of the build then you might be able to sell the complete car for more than the cost of the materials. About all you've accomplished is the ability to pay for your hobby. Not a bad deal if you need to justify the cost of everything to your wife. It seems that the only guys making money are probably the ones mass producing desirable designs that have a high perceived value like the Cobra and GT40. There is a reason that companies that produce quality cars like the Kamala or even the Ultima come and go as often as they do. The key is the principle of economies of scale, aka mass production. Building key components and one off parts one at a time is time consuming and not economical, especially if your doing it yourself or if you have to enlist the help of professionals with skills or tools that you don't have. Bottom line is this: If you really love the look of a certain car and have an emotional tie to the thought of owning something that looks like your dream car and... have the time, ability and cash to make it a reality then go for it. If you think you are getting into this to make money then you will either get discouraged long before the project is complete and end up with a pile of expensive junk or find out that the market for your particular replica is very narrow. There are lots of tire kickers and dreamers with champagne tastes on a beer budget out there. All very eager to find fault in every detail that isn't exactly like the "Real" car you are emulating. There are so many crappy builds out there and con artists willing to trade on peoples dreams that its hard to be seen as something else when you do try to sell.
    Read through some of the posts here and you will come across a few of builders/dreamers admitting that they could have bought a used "Real" car for what they have invested. This isn't meant as a discouragment its just a dose of cold hard reality. This is from the perspective of having built three kitcars already. Some guys like to spend all day at the golf course or on the lake fishing and some of us are content spending time in our unheated, poorly lit garages skinning our knuckles, sweating and cursing over something that will never be a seen as "real" car for most, but to a few that have shared this sickness they will understand and appreciate it for what it is.
    Even the longest journey begins with the first step.

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    Senior Member LarryG's Avatar
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    Re: Any exceptions to the rule.............??

    The few exceptions I could see are some quality built cobras or a well done GT-40 (right engine, right body, etc.).
    The reason might be that people know that IT IS A REPLICA, the originals not being availabe for a long time and being so rare and so expensive that most are not driven on the street. Then they can appreciate the quality and usefulness of the replica.

    Another exception might be the Ultima as it is a costly original and people building them usually put all the cash and effort to make it an exceptionnal car.

    For the rest, it is an expensive and sometimes emotionnally rewarding hobby.

    Just my opinion! Keep smiling

    LarryG

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    Re: Any exceptions to the rule.............??

    Quote Originally Posted by pavo_rodddy
    Hi all,

    Are there any exceptions to the rule of depreciation with kitcars??*........
    Kitcars/replicas are first and foremost like most other CARs on the road today....They do depreciate when purchased new and keep depreciating until they hit bottom...Then their prices stabilize for a while (many years) and in some cases, when the replicas are rare and well made, their prices might start going up a little...

    Example of this is a good F40 replica...Just a handful of AUTHENTIC true F40 replicas exist (don't confuse an authentic F40 replica with some bad examples you see on eBay selling for less than $10K).... There are are a couple of people in here than have REAL NICE copies of the F40 exotic....Those cars are worth good money and when sold they will fetch very good money indeed....I'm guessing close to $20K and over for a true, authentic replica. That includes an authentic interior as well, not just the bodywork....And a strong running V8 motor is a MUST for a top money replica.

    I believe that the prices of such replicas as the one described above, in my opinion, will not depreciate much below the $20K mark...People in the business know first hand what it takes to build a car like this to the highest level and therefore are willing to pay top $$ for such creation...Add to this the fact that NO ONE is making true F40 kits anymore and you can see the supply-and-demand appreciation for such replica...

    However as I said in the beginning, only a FEW replicas will command top $$ and they have to meet the above criteria....Most Lambos, F355 and Cobras kits do not fall in this category for obvious reasons...Too many of them are made to average or below average standards...Some of them don't even look like the real deal....Those are the cars that sell routinely on eBay and elsewhere for below $8K...Those are the replicas that usually depreciate from owner to owner...

    So, YES there are exceptions in the replica resale market so it pays to do your homework when looking and don't forget to negotiate the asking price!

    VK
    Life is too short to be driving Hondas!

  8. #8

    Re: Any exceptions to the rule.............??

    I lose money on all cars not just kit cars, so what your beef buy a house or two if you dont want to throw away money on fun!!!

  9. #9

    Re: Any exceptions to the rule.............??

    i think the bulk of the frustration is because people work alot on these cars to get what appears to be little money. when you just buy a car, you never think about that.
    Professional 3D, web, graphic, architectural, interior, and CAM design at affoardable prices.<br />Any questions: voicemail/fax (323)281-0583<br />sales @ rt-network.com

  10. #10
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    Re: Any exceptions to the rule.............??

    Quote Originally Posted by Daytona Coupe
    I lose money on all cars not just kit cars, so what your beef buy a house or two if you dont want to throw away money on fun!!!
    Your generalization applies to NEW cars....

    I buy USED cars all the time and sell them for profit....I have never lost money on selling USED cars (even if I make $100 profit) and I have made a nice supplement to my income...The old motto applies: "BUY LOW, SELL HIGH".

    Buying and selling houses for profit is another ball game all together and has made many people rich....This practice is not for anyone but we're talking about cars in this forum....The same can be said for trading stocks (daytraders) if you know the tricks of the trade....

    VK
    Life is too short to be driving Hondas!

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