Should I Buy an Older Car That Is Appreciating in Value or a Newer Car That Is Depreciating?

BPC Technology on 10/08/2017 - 18:08
Last edited 10/08/2017 - 18:09

Hi All,

I'm debating internally as to what would be the better choice.
I was looking at buying a Ford Focus XR5 Turbo, which I would enjoy the heck out of, for around $13k.
But now at a recommendation of a Datsun enthusiast friend of mine, I'm kinda looking at buying an old Datsun 280Z or ZX for around $10k.

I have seen a good option for a 1979 280ZX for around $10k in good condition.
The internal battle I'm having that as a P Plater, while the Focus is a safer option, and would definitely be a fun drive, the Datsun has so much more character.
On top of that it is appreciating in value. The Focus's have more than halved in price since they were introduced, while the Datsun has doubled in value within the last 10 years or so.

So if I take care of the Datsun, the way I see it is, is a smarter money decision.
Yes it may need an engine rebuild every 10 or so years and rust is always a factor, but apart from that they last a hell of a lot longer than todays cars.

What do you think?

Do I have delusions of grandeur?
I mean, the Datsun looks so damn nice, and really stands out of today's (kinda boring) designs.

Let me know!

Poll Options expired

  • 5
    2010 Ford Focus XR5 Turbo
  • 13
    1979 Datsun 280ZX
  • 56
    Neither, OP's a bundle of sticks.
Automotive

Comments

  • RobMel on 10/08/2017 - 18:24

    Hi,

    New cars are definitely safer.
    Have fewer issues.
    More features and gadgets.

    Older cars have more character.
    Loose less value or might even gain.
    Often cheaper to repair when something goes wrong, 2nd hand parts are easy to get, overall simpler.

    All of the above are very general statements.

    Consider how much you drive, older cars have less life in them, if you drive like me 5000km or so per year an older car is less of a risk.

    Cheers

    • Ughhh on 10/08/2017 - 18:41
      +1

      Maybe for an old corolla, not for a vintage

  • [Deactivated] on 10/08/2017 - 18:29
    +8

    Datsun has doubled in value within the last 10 years or so.

    Vintage cars are expensive to maintain.

    Don't buying a vintage car for every day driving - it's more trouble than it's work. Buy a vintage car to keep in the garage and drive on weekends.

  • Word on 10/08/2017 - 18:38
    +12

    westpac.

    • D C on 10/08/2017 - 20:01

      Before or after?

    • cwongtech on 10/08/2017 - 23:18
      +1

      High yield investment?

      • D C on 11/08/2017 - 03:21
        +1

        As he's not spending anywhere near $80,000, then no.

        A $10,000 car isn't going to impress your co-workers, and definitely won't make your boss immediately give you a promotion, corner office and pay rise (that's how it works, right?)

        @OP needs to think big.

  • oscargamer on 10/08/2017 - 18:53

    Duplicate

  • oscargamer on 10/08/2017 - 18:54

    As a p plater, can you legally drive the Ford? If you are in Vic, it's a banned vehicle for you.

    • vtecdohc on 10/08/2017 - 21:30
      +1

      It's actually P plate legal in Victoria, Due to the laws introduced a while ago where a car is 2010 and newer with a power to weight ratio of no more than 130kW per tonne, so that's why nearly every P plater drives CVT WRX and VW Golf GTI now.

      Vicroads Probationary Database

  • PVA on 10/08/2017 - 19:05

    Buy a car you like.

  • Diji1 on 10/08/2017 - 19:10

    Isn't the most financially prudent option buying two year old cars?

    Also don't forget leasing.

  • Ocker on 10/08/2017 - 19:42

    Let your conscience be your guide (forget commonsense)

  • [Deactivated] on 10/08/2017 - 19:51
    +1

    Look.

    Ya have ta get sumthin ya proud of. Its called a preyed n joi for a reason!!!

    See ya at the natz.

  • Ocker on 10/08/2017 - 19:51
    +2

    Better idea still - stick to public transport

  • Euphemistic on 10/08/2017 - 20:15
    +4

    Only buy an old car if you can do mechanical stuff yourself.

    Older car Also consider:
    Probably no air cond.
    Less security and possibly desirable to thieves becuase of that
    Less safety features.
    Handling and stopping often not as good without modernising.
    Parts are harder to get, insurance might be higher.

    I'm keen to rebuild an old car one day, with modern upgrades like engine, AC etc.

    • Kangal on 11/08/2017 - 01:34

      The style of those old cars is really something.
      Like a Volvo P1800, Aston Zagato, Mustang, Torana, Datsun Z etc etc etc.

      I think an interesting idea would be to salvage one of these beasts.
      Then clean the internals, exterior, and interior.
      After, install 4x electric motors (AWD) to each wheel, with modern braking system, and batteries stored beneath.
      The instant torque and lightweight means hella fun, especially with the loss of the heavy transmission, drive shaft, and engine.
      Also would be neat to install a modern sound system that blends with the original design.
      Especially the stereo, where the old unit's body could be used as the IO for a modern smart nav iOS/Android car system… again, installed but blended in the original design. Now some people would call that a travesty, but I disagree, you can have style and substance. If you REALLY miss the old engine grunt, well that issue, can be sorted by a separate subwoofer-tweeter emulating the engine rumble-noise as you throttle. And since it is digital, you could switch it on to impress friends and switch it off when you're alone and want that piece and quite. That's my dream anyway.

  • Freitag on 10/08/2017 - 20:57
    +6

    I picked up a Honda Accord Euro 2005 for $5000 1.5 years ago, very responsive engine, firm suspension and economical. I would recommend something around this price point as it's still fun and quick but won't depreciate too much over the next few years.

  • bobbified on 10/08/2017 - 20:59
    +1

    1979 280ZX

    Only if you don't mind getting pulled over every few minutes…

  • Architectonic on 11/08/2017 - 06:31
    -1

    280ZXs are the ugly ducklings of the family, I'm suprised anyone would pay $10k, I guess tastes vary.

    Most older cars, even more desirable cars do not truly appreciate in value unless you don't drive them at all.

    Much of the reason why some examples of these cars are so valuable is because they've either had a lot of money spent on them restoring and maintaining them (usually more money and time than they're worth), or they're museum pieces that never get driven and even then it's risky as there are very few people willing to buy them at these prices.

    • Architectonic on 14/08/2017 - 06:53
      +1

      The person who downvoted me is probably called Sleek.

  • voiletmay on 11/08/2017 - 07:41
    +1

    Don't buy a car as an investment, buy a car that gives you joy.

  • Cheeper on 11/08/2017 - 07:47
    -1

    If you intend to use it as a daily, park it on the street 24/7 and do "dude" things in it then no car will be an "investment".
    Tyre kicking post?? :-(

    • outlander on 11/08/2017 - 11:56

      What are "dude" things? Do you mean masturbation? Why would anyone park on the street for that, that sounds desperate and pathetic
      Remind me never to visit whatever area you're in where thats normal behavior

      • Minimum chips on 14/08/2017 - 18:48

        I think he means hooning around.

  • PlasticSpaceman on 11/08/2017 - 08:02

    From a financial perspective, do not expect to come out ahead either way. Get the car you'll enjoy the most. Many years ago I bought an MGA for $5k and sold it maybe 20 years later for $30k, and used it as a daily driver for a lot of that. I however probably spent more than that after rebuilding it twice - the first time I did it myself, the second time a professional total restoration. I did have a huge amount of fun with it, and don't regret getting it though.

    Think of which car you'll enjoy driving the most, and get that.

    Which would I get? Well the Datsun (Nissan) 240/260Zs are classic Japanese cars. The 280 is nice, but was starting to get a bit bloated and price is being propped up by people buying it because they can't afford the 240/60. If I didnt get a 240 I'd actually consider putting a little more away and getting one of the first Toyota 86/Subaru BRZs to come out here in 2013 or so. You can get those for around $16k now, and may drop even further when the MY18 is released. Great reliable cars, lots of safety features, lots of fun to drive.

  • theHMASfriendship on 11/08/2017 - 08:23

    I had an XR5 turbo, regret selling it. Get one :)

  • Hoju on 11/08/2017 - 08:28
    +3

    Totally disagree that older cars are more expensive.
    In short, they appreciate in value, parts are cheaper and repairs are simpler.

    I've had many older cars, and I can do everything myself - and I know nothing about cars and have a drawer in the kitchen for my tools, so I'm not well supplied or informed.

    The great thing with vintage cars in my experience is:
    - parts are cheaper: I can pick up just about any mechanical part for my old car, new, for under $50
    - there's a world of enthusiasts on the internet who just love their old cars, and are more than willing to help out. I'm talking going above and beyond what you'd expect. I've had people mail me parts for free and walk me through the repair online
    - if things go wrong, there's no plastic in older cars. It's all there to see, not behind some shitty moulded plastic crap that is meant to make it impossible for you to do anything yourself
    - you can get historic rego, and have it on the road for <$100 a YEAR!
    - GODDAMN I LOVE DRIVING A CAR WITH CHARACTER! I get notes on my car when it's parked on the street, people wanting to buy it
    - VALUE! I've had 3 vintage cars that I've done minimal work on, over the past 5 years. I like buying them and doing bits and pieces, then another usually takes my fancy and I sell my previous one and move on to my next bit of fun. First one I made $3200 profit, second one I made $7000 (!!) profit and third one I've been offered $3k more than I paid for it already, and I haven't even started the proper resto. These are all on $7-13k purchases, so the % appreciation is pretty sweet, and the sales are all within 2 years of purchase.

    There's an argument going around the classic car clubs that with all the uncertainty in global stocks and traditional forms of investment, the wealthy are just looking for places to dump their money, and classic cars are the new hot spot.

    Go the Datsun man!!

  • [Deactivated] on 11/08/2017 - 09:44

    XA Falcon!

  • Birchy on 11/08/2017 - 11:38

    Classic cars are fun. If you you can pick the right model of what will be popular to the right collector in few years you can make money not all old cars are worth $$$$ just because their old. The money in old cars depends on how original they are to new (no after market parts,well looked after interiors and no back yard mods.)and most important as in old and new cars how many miles/kms it has done. So maybe as a daily driver living in the city more chances of scratches, door dings, shopping trolley scrapes and all the while running up the speedometer may not equal into a good investment. Classic cars are fun, I have a couple I like to drive just about any chance I get but coming back to your investment to find a broken tail light from some d!ckhead and having to replace both so they match is not.

  • Birchy on 11/08/2017 - 11:41
    +1

    Fun Fact: The common collective for a bundle of sticks is a fag or faggot.

    • Architectonic on 14/08/2017 - 06:51

      Fun Fact: stating the obvious ruins the joke.

  • Peter Enis on 11/08/2017 - 13:02
    +1

    As the prior owner of 2 Datsun 260Z's I felt inclined to comment.

    To me the 280ZX would have to be the least desirable of any Z car. Straight out ugly and not a good performer

    As far as old cars being an appreciating asset? Sure… if you don't include all the repair costs over time. Just look at all those old car ads where they are asking $10k and they say something like "have over $20k in receipts for work done".

    Do I miss my old Z cars? Hell yes! Would I buy one again? Hell no! They are rust buckets and no matter how much you spend on mods/repairs, you're still left with a rusty old Datsun. You'll never get rid of all rust unless you do a complete strip back to bare metal ($$$).

    But hey, do what you like - if you like the 280ZX and you are prepared to sink some money on it, just do it! Just don't expect to come away financially better off at the end of it.

    I sure loved cruising in my 260Z though.

    • Hoju on 11/08/2017 - 13:14

      Good point re rust

      With any old car rust and panel work will be the single biggest expense. I've never had rust work but would walk straight away if it was in any telltale areas. This is where you'll lose out, you don't really make money back on a bare metal restoration.

      But no rust and you're onto a good thing

    • Minimum chips on 14/08/2017 - 18:50

      Whenever I get the urge to buy a rusty old beast and have fun with it, I just watch Roadkill and live vicariously through them.

  • backpaqer on 11/08/2017 - 20:13

    I had a Datsun 260Z (2 seater) - it was seriously fun to drive…but apart from the initial cost of around $7k back in 1988 I probably spent another $7k+ in getting things fixed while I had it for 3-4 years. I don't think I would ever buy a 2nd hand sports car ever again…they are built to be thrashed, so don't get any illusions that the previous owner just buffed it with a cloth and gazed at it lovingly for hours…it got a caning! If you really have to buy a secondhand car with character - spend lots on getting it checked out…compression tests and as invasive as you can afford it to get. The days of being able to drive from Adelaide to Melbourne in 5 hours are well and truly gone.

  • JOCKz on 13/08/2017 - 10:56

    I think its already been said, as a daily the Datsun will be a bad choice. With daily driving means more ware and if you cant do things yourself, or dont have the time. I really wouldn't bother. If you were picking it up as a weekend/project car it would be another story.

    1st rule of owning a project car = have a reliable daily.

    • PlasticSpaceman on 13/08/2017 - 12:54

      I agree that I would not go the 280ZX. Not only is it less of a classic car compared to the 240/260, it is also getting more complex so harder to maintain yourself. Case in point - if it has an audible warning system, it might be using a tiny record player!
      (http://jalopnik.com/5246380/1982-datsun-voice-warning-box-us…)

      I would go the simpler car if planning to look after it yourself. I would also say that an old car can (in particular ones with minimal electrical do-hickery) be very reliable but you do need to ensure it is properly maintained so it does take more personal effort. If you get someone else to look after it, well the cost is likely going to make it all fairly unpleasant financially.

  • hiddenghost on 05/10/2017 - 16:45

    my advice, buy a fun daily, possibly non-turbo to keep insurance costs down, and buy a 260z (not a 280zx), and slowly restore that over time.

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