The Dodge Viper Is the Best Investment Out There among New Cars

"RyanFrew" (ryanfrew) 10/14/2015 at 15:38 • Filed to: Viper

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First of all, if you came to this post just to bash me for audaciously claiming that any new car is somehow a fundamentally sound investment, allow me to save you the trouble: I know. According to a PNC Banker who talked at me last week, new cars lose roughly 70% of their value within the first three years of ownership. He didn’t cite his source, but he is the kind of guy who told me that I should get a PNC credit card that yields 2 percentage points less on cashback bonuses than my Amex, because, “unlike those people at American Express, PNC cares ”. He also explained, in response to my complete lack of questioning about the subject, that he’s in the middle of a grueling duel with plantar fasciitis, and he pronounced “fasciitis” correctly. At least I assume he pronounced it correctly, because I have only ever heard the word said as sort of a mumble, like when someone tries to say “worcestershire sauce” or “Louisville”. Anyways, my point is that the dude knows his stuff. So, let’s start by getting it out in the open: There is no car that you can buy that will promise to appreciate the same way as a CD, IRA, treasury bond, etc..

However, every few years, a car comes along that skyrockets in value at a time when most other cars are reaching the bottom of their depreciation curve. Take this 2003 BMW z8 Alpina, for example. In ‘03, when z8 US sales were beginning to decline, this car carried an MSRP of ~$135,000. Now, you can get one with !!!error: Indecipherable SUB-paragraph formatting!!! ! Where’s Tavarish? This type of price increase is unique, but there are other cars that have exceeded expectations on the depreciation curve as well, like the BMW 1m, the Ford GT, or 25-year-old JDM Nissan Skylines.

It’s difficult to predict which cars will appreciate quickly, and when, but I think that the current Viper is going to make Jalopnik’s list of !!!error: Indecipherable SUB-paragraph formatting!!! , ten years from now. Volkswagen TDIs, which placed #10 on the list, published in February of 2013, probably won’t be there any more, by the way.

So, why is the Viper such a strong long-term value proposition? First of all, today’s news that !!!error: Indecipherable SUB-paragraph formatting!!! , is good news, from this perspective. Obviously, something that can’t be had anymore becomes more desirable. The s2000 is a great example of that. If you bought an S2000 eight years ago, and you put between 5,000-15,000 miles on it, not only are you a bad person, but you can also now turn around and sell your car at a net gain/loss of $0. !!!error: Indecipherable SUB-paragraph formatting!!! .

But if Vipers aren’t selling now, why would they start selling so well in the future? 9,684 Honda S2000s were sold in the US in 2003 and only 795 were sold in its final year, 2009. Z8 sales were cut in half in the US in just two years, from the peak in ‘01 to the end of production in ‘03. In fact, there were still five “new” Z8s sitting on dealer floors in ‘05.

Sometimes, what makes a car desirable when it’s built doesn’t translate perfectly to the future. Right now, the story is just that the C7 is cheaper, GTR is faster, F-Type R is flashier, and 911 is nicer. The $100,000 price territory marks a crowded field. But in 10 years, once the dust settles, there will be more subjective factors that join the equation:

How has it aged?

Is it rare?

Does it capture something that can’t be found in new cars anymore?

Reasons like the ones above are why previous gen Ford GTs are doing so well. In hindsight, the GT may be the most beautiful car from its decade, it’s rare, and it is one of the last supercars that featured mechanicals above electronics. I think we’ll see the same thing happen with the Viper. The C7 won’t age well, in terms of appearance, the GTR is going to be a nightmare because of how digital it is, Jaguars always depreciate like rocks, and the 911 is a 911, as usual. The Viper, though, has an old-school manual, a normally aspirated, high displacement engine, it’s pretty and will stay pretty due to it’s clean design, it’s plenty fast, sounds great, and there aren’t a lot of them out there. When this car reaches the end of production, it will mark the end of an era. The C7 features a watered down manual that rev matches for the driver and the Z06 has a reputation for struggling after a few hot laps. The new Ford GT looks great but it has a turbo’d V6, which just isn’t a normally aspirated V10. The GT350 will be awesome, but it’s a different beast - more track focused than the Viper is. Hellcats are cool - they’re also huge.

If you want a current-gen Viper, or think you’ll someday have nostalgia for manuals, RWD, lack of electronic nannies and the rumble of a large engine, buy it now, while the dealers are bringing the price down for you, because that’s close to the lowest they’ll ever be.

Photo Credit: Wikipedia

Punk_Girl_98 > RyanFrew 10/14/2015 at 15:44

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Very good post! Even I learned something and love Vipers.

JR1 > RyanFrew 10/14/2015 at 15:45

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Vipers might not go up in value right away because of a prolonged production span. If you want one that will increase in value quickly I would bet you need a special edition Viper.

K-Roll-PorscheTamer > RyanFrew 10/14/2015 at 15:45

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Chariotoflove > RyanFrew 10/14/2015 at 15:46

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Nice piece, and well written. Not sure if it’ll appreciate like you predict because the things you quote in your last paragraph may scare off a lot of buyers. But then again, perhaps not collectors. But who knows?

RyanFrew > JR1 10/14/2015 at 15:48

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Agreed. It’s a little bold to claim they’ll go up right away . I don’t know that I could name a car that’s really done that. But it won’t take long and I don’t think they’ll go down the typical 70% at any point. My bet is no more than 25% depreciation, ever.

dogisbadob > RyanFrew 10/14/2015 at 15:50

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The Honda Fit and Civic are almost investments since they hardly depreciate.

MontegoMan562 is a Capri RS Owner > RyanFrew 10/14/2015 at 15:52

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I’d trust this article more if PNC wasn’t involved.

jjhats > RyanFrew 10/14/2015 at 15:53

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the problem is old vipers give the same experience, arguably better for cheaper. the s2000, ford GT, and z8 were relative one hit wonders that came out of nowhere and didn’t have immediate follow up acts

RyanFrew > dogisbadob 10/14/2015 at 15:53

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I think they depreciate a little more slowly than most vehicles because they tend to last so long. That said, once Civic prices hit the basement, they never go back up. Very few people are just pining for an old Civic, but there are a whole lot of old Civics out there.

TractorPillow > RyanFrew 10/14/2015 at 15:53

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Yes, rareish cars that don’t make a lot of sense do tend to appreciate...as long as people have a decent amount of disposable income. See Lotus Elise (and especially Exige) prices over the last 5 years. Sold a ton their first couple years and then tapered off. I sold my elise for 2.5k more than I paid for it after two years and 15k miles added. I think a more solid investment are these cool cars that have already had their initial depreciation hit bottom. You can probably break even on those pretty easily. That’s what I try to do and the last 4 cars I’ve had I have been able to turn them around for a profit without doing anything major to them. Here's hoping my 02 GTS will go up in price as well.

Grindintosecond > RyanFrew 10/14/2015 at 15:53

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I never understood why the Viper love hasn’t been there, especially after the enormous ammount of re-engineering of this newer model. They designed teh engine so just in case the owner wanted to add some boost, it could take it. It’s ready for you to bolt stuff on and it will accept it lovingly. It’s built to not kill you right away, but feel like you might die... might. It’s wonderful with an attitude that’s not all about look-at-me-Lambo-yo! I think the $100k price and domestic heritage harmed it in that area because it’s still a price that a consumer is in because they can’t go for that F430 and if they want this price range it’s going to carry some prestige mark weight to it. So Viper unfortunately looses that fight. But the car itself, remarkable. I think, just like the GT, you’re right. The realization wee missed something special will be after it’s finished. The same reason they brought it back, cause people missed it. And then didn’t care when they got it back.

I wonder what the target price will be.

RyanFrew > MontegoMan562 is a Capri RS Owner 10/14/2015 at 15:54

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Hahaha yeah, the goal there wasn’t to give PNC a totally glowing review. I’ve had pretty good dealings with them overall, but the conversation I was referencing was bizarre.

RyanFrew > jjhats 10/14/2015 at 15:56

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Yes and No. Each Viper is meaningfully unique from another, it just doesn’t appear on paper. The key with the new one is that it’s prettier on the inside and out and the build quality is higher, thanks to the FCA involvement. It also won’t try to burn your leg off. I am surprised that the previous two gens are still going as low as they are, though.

FazeRacer > dogisbadob 10/14/2015 at 15:57

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Investments should never depreciate. Most cars are not investments, unless you are dealing with a collector car (and a Fit and Civic aren’t collector cars).

Milky > RyanFrew 10/14/2015 at 15:59

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So buy a used 2013 in 2017? Thats something I can work with for a dream car.

jjhats > RyanFrew 10/14/2015 at 16:06

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I could be wrong but I think most people like old brutish non technology enhanced cars. the old vipers will bite you hard if you cant drive and I think those will be the ones that will be worth money. because at the end of the day a nice new refined dodge product is still a dodge product and not what people are after. the old ones are renowned for their inherent Spartan nature like the no door handles no traction control no windows roof etc. that’s where I think the appeal of the viper lies.

TractorPillow > jjhats 10/14/2015 at 16:13

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I think this is spot on.

MontegoMan562 is a Capri RS Owner > RyanFrew 10/14/2015 at 16:25

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Reason for disliking PNC-

When I was working over the summer as a kid in NJ and I knew I’d be going to Michigan State when I graduated. I asked PNC if they had a branch in East Lansing.

“Sure we do! It’s right across from campus” (he had referenced a map). NOPE. nearest thing was an ATM about a 25 minute bus ride away from campus in a different city and even worse. EVEN WORSE. It was a surcharge to use your own banks ATM. I had a PNC card, with a PNC bank account, at a PNC bank ATM and was hit with a $4 surcharge to take out my money.

I promptly closed my account.

(Yes I know this isn’t about PNC, just ranting because I can)

Steve in Manhattan > RyanFrew 10/14/2015 at 16:26

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I think you’re right.

Sneaky Pete > RyanFrew 10/14/2015 at 16:37

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Early Gen I Vipers and Gen II Vipers are cheaper and will likely provide more of a return in the long run. It’s even more raw than the Gen Vs, and they’re the originals.

RyanFrew > MontegoMan562 is a Capri RS Owner 10/14/2015 at 16:38

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What year was this? PNC was charging you at PNC ATMs? I’ve said for a long time that if any bank ever tried to charge me for depositing with them (which they already make money off of), then I’d leave in a heartbeat. They actually reimburse me for ATM fees with other banks, though. I think the reimbursement goes up to something like $12/month. Ironically, I set up my account with them because they’re so accessible nationwide, among a couple of other reasons.

MontegoMan562 is a Capri RS Owner > RyanFrew 10/14/2015 at 16:57

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that’s why I picked them ( but it was all a lie!)

This was 2004, it’s been over a decade I should ease up on them hahahhaha

wiffleballtony > RyanFrew 10/14/2015 at 17:00

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I would gladly choose a Viper over the aforementioned competition. However I have nowhere near the disposable income to be of any use.

Luc - The Acadian Oppo > jjhats 10/14/2015 at 17:22

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I 100% agree.

http://oppositelock.kinja.com/the-original-v…

Sam > RyanFrew 10/14/2015 at 17:51

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The 1M is one of the few cars I can think of that has immediately appreciated.

Nauraushaun > RyanFrew 10/14/2015 at 22:36

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I’m with you. To say they hardly depreciate is a lie. They may depreciate slower than everything else, but is a 2010 or a 2012 model going to sell for the same price as a 2015? No. Within 5 grand? Doubt it.

And as you say Ryan, they’ll never, ever go back up.

Built BMW Tough > RyanFrew 12/01/2015 at 16:18

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Tacomas don’t really depreciate. You could essentially drive one for free for a year.

Mike > RyanFrew 07/17/2016 at 09:37

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I agree. Especially the voodoo 2 or the 1:28 limited edition versions of the 2017 viper will go up in value quickly. Only making about 30 each of these.

BIGJAY > RyanFrew 11/19/2016 at 10:16

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I OWN A 99 GTS BLK WITH SILVER STRIPES 19000 MILES. LAST YEAR OF THE FORGED INTERNAL V10. I HAVE A CAT BACK EXHAUST, SHORT THROW SHIFTER, SOUND SYSTEM AND THE THE BEST GRIP RACE TIRES. I REPLACED THE STEERING RACK, DID BREAKS WITH RED PADS AND HP ROTORS AND HAVE A NICE TUNE UP. I THINK IT IS THE NICEST LOOKING AND RUNNING CAR IN THE WORLD. I ALSO LIKE THE 2006 427 CORVETTE WITH COMMONLY ASPIRATED 505 HP AND ALSO VERY CHEAP NOW. I AM GETTING ONE OF THOSE WITH LOW MILAGE IN THE 30 THOU RANGE.

BIGJAY > RyanFrew 11/19/2016 at 10:19

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I HAVE A 99 GTS BLK/SILVER STRIPES, 19000 MILES LIKE NEW. I THINK IT IS THE MOST BEAUTIFUL CAR IN THE WORLD EVER. ASENZO SAYS THE HEART OF A LION AND SHAPED LIKE THE WIND. I ALSO WANTTO GET A 2006 ZO6 WITH COMMONLY ASPIRATED 505 HP AND LOW MILES NOW IN THE MID 30'S. QUITE THE DEAL.