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I have never seen a Grade 5 auction car before. Thought the scale stopped at 4.
Grade 5 is unusual but not unheard of. It actually goes up to 6 (brand new). Several 5s have gone through this year and heaps of 4.5s. But forget auction grades. Anyone who trusts auction grades is a sucker. You can pay an assessor to guve it whatever grade you want. Vehicles have to be seen in person to ascertain true condition.
That said, i saw detailed photos of this one and it was immaculate.
a blue 5A rated Spirit R Type A with same km went through a month ago and sold for around 15M. So this is still a huge increase on that.
This car won't be driven. It will go into a collection for sure.
I estimate the sellers breakeven amount for this long term investment at Y18,342,800
(Not counting any enjoyment benefit.)
With a sales price of Y23,185,000 and a nominal gain of 4,842,200 my estimate of compound annual return after costs of 3.9%.
In 2001 ten year Japanese government bond yield was 1.315% and in 2011 it was 1.2141% with an average of the two of 1.26%
This would give a risk premium of 2.64% over risk free investments of the day.
For contrast Y1,000,000 invested in 2001 in the Tokyo stock market index would have declined to about Y800,000 in 2011 but would be about Y3,000,000 today. (up 3x).
So what are typical salvage title FDs in running condition going for these days?
Asking for a friend.
I've kind of been dormant in the FD scene the past few years.
I estimate the sellers breakeven amount for this long term investment at Y18,342,800
(Not counting any enjoyment benefit.)
With a sales price of Y23,185,000 and a nominal gain of 4,842,200 my estimate of compound annual return after costs of 3.9%.
In 2001 ten year Japanese government bond yield was 1.315% and in 2011 it was 1.2141% with an average of the two of 1.26%
This would give a risk premium of 2.64% over risk free investments of the day.
For contrast Y1,000,000 invested in 2001 in the Tokyo stock market index would have declined to about Y800,000 in 2011 but would be about Y3,000,000 today. (up 3x).
That's some awfully low returns to compare to.. 1.26% is below the average inflation rate (pre-2021), what a waste of capital
So what are typical salvage title FDs in running condition going for these days?
Asking for a friend.
I've kind of been dormant in the FD scene the past few years.
Very hard to find a running FD under 20k especially if interior is decent. Good interiors are becoming more valuable than a motor, given you can get an OE motor still.
FOR WHAT IT"S WORTH Here's my current valuation guide for _"need nothing".. LHD FD's...ciean title '93..........94 $10K $15K.........interior $20k $20K.........exterior $15K $15K........drivetrain $45K $50K........total.
$60k $70K Mint (under 30k miles, 5spd, hardtop, black interior)
I went in to pick up some parts for my FD at the local dealer, who consequently is also a customer of mine ( Electrical Business ) and my parts guy told me I should take a walk into the showroom. I did and they had just put an 94 BB on tan touring 5 speed with 16k miles out on the floor for sale. https://www.richmorton.com/inventory...d3332r0301498/ I played ignorant and checked out the car. The interior was pristine, body was excellent, undercarriage was fair yet looked used and the engine bay was mostly stock but filthy. It was missing the battery cover, had the wrong alternator boot which look like a mouse chewed it, Couple missing bolts here and there and the biggest telltale of all… It had overspray on the front underside of the hood ( blatantly noticeable on the passenger side ) along with missing the vacuum diagram decal and air-conditioning decal. It’s definitely had paint work done to the front or possibly been bumped. Most of the engine bay hardware had light surface rust on the fasteners and the rest was just dirty. It’s supposedly had a clean Carfax as well. I asked the guy showing me who was rambling on about it being 320 hp, 2000 pounds etc. etc. ( not his fault he missed quoted almost everything he told me ) what’s the asking price was? 80,000.00. I did bust out laughing on accident, though I couldn’t help myself. I think the pricing is a bit off but with some cleanup work that could be a very nice low mileage stock example. If anyone out of state is seriously interested, I can always investigate further for you. Either way, this is the first one I’ve seen in a dealer for quite some time.
I estimate the sellers breakeven amount for this long term investment at Y18,342,800
(Not counting any enjoyment benefit.)
With a sales price of Y23,185,000 and a nominal gain of 4,842,200 my estimate of compound annual return after costs of 3.9%.
In 2001 ten year Japanese government bond yield was 1.315% and in 2011 it was 1.2141% with an average of the two of 1.26%
This would give a risk premium of 2.64% over risk free investments of the day.
For contrast Y1,000,000 invested in 2001 in the Tokyo stock market index would have declined to about Y800,000 in 2011 but would be about Y3,000,000 today. (up 3x).
Nice analysis.
A few things though:
1. The actual purchase price after options, taxes, registration etc was more like 4.5M JPY.
2. Let's assume someone paid for external storage like you have assumed (as not many Japanese owners would have their own garage). You still need to factor in maintenance and registration costs. Japanese owners invariably keep these things registered and you need to keep a service record for the car to get a "shaken" or inspection certificate every 2 years to maintain registration - approximately USD1,000. Then once a car is 10 years old, the annual taxes on the car increase dramatically. The holding costs would be quite significant hence why so many nice Japanese cars end up in auctions in the first place.
3. Based on the above, the investment makes much worse sense.
4. However, this assumes a one owner car. If you bought one of these at the bottom of the price cycle about 6-8 years ago, you could get an ultra low km grade 5 example for 2-3M JPY. Now it's not such a bad investment after all.
This door looks both closed and ajar at the same time..
They are not super familiar with Fd’s there. They just didn't close it hard enough. You know they need to be closed like a truck. It fit great when I looked at it. All body lines were nicely fitting as well. It’s def had paintwork on the front area tho. May of been touched up by the previous owner. The rest I was pretty surprised, tho I still can’t get over how absolutely filthy the engine bay was. I did forget to mention that the driver side door panel does have some shoe rub marks by the speaker grill from bumping it getting in and out.
I went in to pick up some parts for my FD at the local dealer, who consequently is also a customer of mine ( Electrical Business ) and my parts guy told me I should take a walk into the showroom. I did and they had just put an 94 BB on tan touring 5 speed with 16k miles out on the floor for sale. https://www.richmorton.com/inventory...d3332r0301498/
~ GW
The ad says Base but it has rear wiper, glass sunroof, and Bose. That would make it a touring, no? I basically have the say BB 94 Touring on Tan.
Mazda still used the same Bose Acoustic Wave speaker system right into the version 5 RX-7 (1999-2000 model). It was an option on the Type R and Type RS in those model years. The head unit may have been slightly different but it still had the Acoustic Wave speakers in the hatch. It was finally retired in 2001.
The ad says Base but it has rear wiper, glass sunroof, and Bose. That would make it a touring, no? I basically have the say BB 94 Touring on Tan.
They are just not familiar with rx7’s in general there. You have to remember we’re on a enthusiast site with a lot of very knowledgeable people, most individuals couldn’t tell you what the car is let alone the difference between a base, touring, R1 or R2. They have an fc convertible in there with some misinformation as well. It is in fact a 94 touring.
I sincerely apologize for the emojis hurting your feelings. It's just that your ignorance caught me by surprise since we were just talking about this.
BIut oh well I'm sure you'll live tho.
get off your high horse dude.. quit acting like your **** doesn't stink. I missed the touring data for the 94s. Not necessary to come on here with your smart *** remarks.
get off your high horse dude.. quit acting like your **** doesn't stink. I missed the touring data for the 94s. Not necessary to come on here with your smart *** remarks.
Lol relax man... Take a breath and realize that I was just goofing with you. Besides I edit it since it's obvious that you take yourself too seriously. I mean, this all got started because a question mark emoji got you all riled up..Seriously, let's stop a think about this for a second: A question mark emoji
P.S. Mr may 2020, I'll post wherever I damn please. This is called a forum in case you didn't know.
Lol relax man... Take a breath and realize that I was just goofing with you. Besides I edit it since it's obvious that you take yourself too seriously. I mean, this all got started because a question mark emoji got you all riled up..Seriously, let's stop a think about this for a second: A question mark emoji
P.S. Mr may 2020, I'll post wherever I damn please. This is called a forum in case you didn't know.
whatever dude.. you were clearly being a smart *** where I simply overlooked the data but you couldn't help yourself could you. I gave you smart *** reply just the same.
Yea absolutely, post whatever you want and I'll do the same.
And...May 2020, what's your point. Go sit down somewhere cool guy, get over yourself.
11-12-21, 02:24 PM
