Cars you can buy for under $5K that will double in value in 5 years.

We've all watched the rich guys invest in very expensive collector cars only to double (or more) their money by reselling in a couple of years. Can those of us with a Grassroots budget get in on this? I think so. There are a number of cars that can be purchased for less than $5,000 that - besides being enjoyable to own - have a lot of upside potential to double (or more) in value is a short time. This assumes purchasing a decent driver/ survivor condition car that has a clean title, mostly original, not wrecked, and not a rust bucket. This isn't about restoring. It's about driving/ maintaining/ enjoying and then turning a profit.

Here's a list of potential cars:

All RWD Alfas and desirable year Spiders

AMC Javelin

Audi Quattro Coupe '84-'86

Bricklin

BMW 633/ 635 - points for manual trans

Chevy Corvair - desirable models (Corsa, Spyder, etc)

Datsun 240z - '70-'72

Fiat 850 Spider/ Racer

Mustang Mach 1 - '71-'72

MGB and MGBGT - chrome bumper cars

Lotus Europa S2 and Elite/ Éclat

Original Minis

Porsche 914s

Pontiac Fiero GT ('88 only w/ manual) '70s Trans Ams

Triumph GT6, TR7 roadster. (any TR6 bargain)

VW Karman Ghia

Obviously, there is a whole new list if you can spend a bit more. Some of the list above can be purchased in the $2K range.

Any additions to the list? Discussion?

mid 70's c3 vettes is my guess.

I second the inclusion of the 914 on your list, I wish I still had my rust free, 47k mile 914!

Datsun1500 wrote: In reply to Argo1: Where can you buy a clean driving bricklin, 240, audi, and mini for $5000?

Some are easier to find than others. Your mileage may vary. Every one on the list I've found for sale at $5K or less in the last 90 days using a nationwide Craigslist search. Deals go quick. Sometimes a little creativity is needed such as a $4000 car that would need $1000 in work to be a driver. That kind of stuff.

Fox body Mustang.
3rd and 4 th gen Camaro.

Fox bodies are going to start appreciating like crazy.

A 5.0, 5mt, notch is part of my retirement plan.

In reply to Argo1:

You'll be very hard pressed to find a clean 70's Trans Am anywhere near 5k. For a clean one your looking 10-15k and perfect cars are over 20k. For 5k you'll get a rusty car with a poorly swapped SBC in it.

Depending on where you live Fox bodies are already heading upward. The real challenge is to find a stock one.

Good luck finding a cheap 240Z that isn't a POS.

POSes rarely appreciate significantly.

Some quick browsing yielded:

A Bricklin in the price range- http://louisville.craigslist.org/cto/4154439294.html

A '70 240Z- http://sfbay.craigslist.org/sby/cto/4215741841.html

No real stellar classic Mini ads but this is close- http://orlando.craigslist.org/cto/4192198099.html

Didn't come up with any current Audi ads but I probably should have added TVR to my list. If you watch sometimes they sneak into the price range- http://fortmyers.craigslist.org/lee/cto/4217291479.html

Trans Ams- many to shop. The cherry ones are higher. http://modesto.craigslist.org/cto/4158437904.html

http://modesto.craigslist.org/cto/4150063904.html

http://sfbay.craigslist.org/nby/cto/4211241958.html

http://fortcollins.craigslist.org/cto/4155405234.html

Hate to say it but all of the links you posted will probably be about the same price in 5 years. Only the really good ones are appreciating. Most people can't do the work any more.

I see more of the 80's and 90's classics starting to hit the upward trends as the gen X start to hit their mid life crisis. I would look more into CRX, 1st gen GSR, and MR2 than anything you listed.

http://seattle.craigslist.org/see/cto/4215342245.html

This is almost exactly what I have in mind.

It really is all about clean. You don't really make money restoring them. You can look at it as getting a good deal, restoring the car, and in 5-10 years you might be able to sell it for what you have in it.

Early 80's and 70's Mercedes are really going to be one to watch.

I would also add Fiat 124s.. especially now that Fiat is back in the US.

Classic Saabs might also appreciate

$3200 Very rusty and a SBC

$3500

$4000

$6900 Car needs a complete respray and by the time you fix all the other stuff you'll find in that process you'll likely have over 10k in it. And your still stuck with the anemic turbo 301, bonus points for being a pace car however.

All of these cars would need a complete restoration to increase there value in ten years. And they likely wouldn't bring what the resto costs were.

These are the nice ones.

$13,500 Nice original unmodified car, not perfect but more along the lines of what I imagine your talking about.

$25000

$20000 400 4spd car

$19500

bmw88rider wrote: Hate to say it but all of the links you posted will probably be about the same price in 5 years. Only the really good ones are appreciating. Most people can't do the work any more. I see more of the 80's and 90's classics starting to hit the upward trends as the gen X start to hit their mid life crisis. I would look more into CRX, 1st gen GSR, and MR2 than anything you listed.

^ This

The Bricklin and the 240 need at least $2-4k in work to be close to being considered nice. The mini looks slightly better but based on some of the other things I see in the photos I'm willing to bet it's a bit of a polished turd under the shine.

"investing" in cars is akin to gambling, you never really know what will be the next big thing

It's all a risk. If it was easy everyone would do it. It's about buying right. Doing cost effective fix ups. Selling right. I've made money on every Porsche (7) and every race car (4) that I've owned.

Argo1 wrote: It's all a risk. If it was easy everyone would do it. It's about buying right. Doing cost effective fix ups. Selling right. I've made money on every Porsche (7) and every race car (4) that I've owned.

That much I will agree on, I've bought and sold over 120 cars lifetime and rarely lost money on them. But there's a difference between buying right and turning a small profit and buying thinking you can double your money in 5 years. 5 years is a short time for a car to appreciate, you'd have to find the perfect spot on the bubble and that's darn near impossible. Also in the 5k range you are either looking at cars that have begun appreciating again after hitting the sweet spot, or cars that could be worth 4 to 5 times more after investing 8 times more.

It sounds like you know Porsche, stick with the ones you know and your chances increase.

surprised nobody has said Miata or E30. Some of the Sporty BMWs should appreciate well. Think 325is and 318is

mad_machine wrote: surprised nobody has said Miata or E30. Some of the Sporty BMWs should appreciate well. Think 325is and 318is

Being a new 325is owner I like seeing that! Hope you're right.

In reply to JThw8: You've got me by a few. I've only sold about 60 or so personal cars though I am GM of a large dealership as a profession. Some of the cars on the lower end of the spectrum are the most likely to see larger percentage increases. Chrome bumper MGBs come to mind. A decent driver is about $3000. They could easily find $6000 in five years as less are on the road. Same for Corvair Corsas as the supply of non restored drivers dwindles down.

1st gen celicas both liftback and coupe bodystyles. mr2s of all styles

Saab c900, particularly SPG's and such.

Well preserved Grand Wagoneers are on the rise. Could similar be predicted to happen to Jeep XJ's.
Not just because they are good at autocross and drag but because they are a highly functional vehicle and as such, many just plain get "used up."
After 16 years, production ended in 2001 making even the newest 13 years old (and the oldest nearly 30 years.)
Clean or well sorted examples should increase.

You can make this value proposition work much better by buying well.