Why you should buy your JDM dream car... NOW.

"The-Ever-Socially-Apathetic TBAL" (tokyobayaqualine)
06/02/2014 at 15:04 • Filed to: investments, money, jdm, tokyobayaqualine, rare cars, japan

Ahh.... Summer. I like summer. But I hate the sun. That may be because I'm a redhead, so I turn as red as a tomato. So as much as I like to SAY I like summer, the truth is that I spend most of it indoors, dreaming of the cars I'd like to own. Only difference between myself and most dreamers, is that I look at the big picture. And so should you.

Not all of us can afford a 1963 Ferrari 250GTO. The people who can afford them can also afford a years worth of bad investments, hot babes, and enough flowing, high end champagne, that they can bankrupt a high end club as quickly as you can say "Shit".

Most of us can only dream of being this rich. But the thing is... Ferrari 250GTO's were at one point, relatively cheap 'used'. At one point in the late 60's, you could pick one up for 10,000 dollars. Keep in mind that the average new Mustang 390GT was about $5000, and then you start to realize just how cheap they were. That would be like paying $40,000 for a V8 5.0 today, when you can buy an Enzo for $80,000.

Which would you rather take the loan out on? I'd live in a BBQ if it meant I could wheel an Enzo around.

Here's the thing... Car inflation occurs every 30 years. Don't believe me? Let's take a look at what was popular in the past couple decades, decade-wise, for car collectors:

2010's = Late 60's/Early 70's exotica

2000's = 1960's Muscle Cars

1990's = 1950's American Cars

1980's = 1940's European Cars

1970's = 1930'a Art Deco

1960's = 1920's Hot Rod's

Starting to see a trend?

It's called a mid life crisis, and it seemingly effects almost all of us guys. We pine for the car we wanted as kids. The car that was "Too cool for school." 30 years after high school, we've finished paying off the house, and the wife allows us a toy. And we aim BIG.

If you grew up in my generation, for us kids, those cars were the Skyline GT-R, Supra TT, NSX, and RX-7's. Silvia's came close behind, as did the Cosmo, the Soarer, the MR-2, the older models of these rides, and so on.

But the 2000's are over. We're living in the 2010's now. And they're almost half over themselves.

Which means you have about 5 years left to save and purchase your "dream car" or "investment" at bargain bin prices.

Don't have room? Rent a garage. Rent a backyard. Dismantle the car and hide it in pieces in different places.

Trust me, you WANT to buy them now.

Now, I know what you're thinking... "But these cars were made in far greater numbers than the 250 GTO, or Shelby GT500SS". And you're right. But guess what? The population when these cars were new was about 4 billion.

Now? Just over 7 billion. And it's not going to get any lower any time soon. Which means that in relation to population, the BNR34 GT-R M-Spec Nür, with it's production run at 150, will seem absolutely tiny in 15 years.

But within 5 years, investors will see the trend, and the market will begin to rise slowly. You can already see this trend in 80's/90's exotics, which are the next big thing... A McLaren F1 just sold for 10 million.

I wanted to write this post to give you some insight as to what to save for should you want to buy a second house or even your first house, in 15 years or so. So I've compiled a list of UBER rare machines from Japan that are still relatively expensive right now, but will most certainly not get any lower than they are now. I've also compiled a list of cars that fall into the "Middle Investment" stable, which means you can buy them now at a decent price. And then I've compiled the "Low end" list, which are filled with cars you can pick up cheap now, if you can find them.

UBER Class:

Nissan Skyline GT-R (BNR32, BCNR33, BNR34) M-Spec Nür, Z-Tune [$500,000 currently], V-Spec II Nür, NISMO R/S-Tune, V-Spec II, V-Spec, 400R, Autech 4-Door, Autech HCR32-R, NISMO 1990, and especially all N1 Versions)

Honda/Acura NSX (Type-S, Zanardi, Type-R)

Toyota Supra JZA80 Twin Turbo (RZ, RZ-S, TRD 3000GT)

Mazda RX-7 (Bathurst R, Spirit R, Efiñi [USDM], Mazdaspeed)

Subaru Impreza WRX 22B STi

Mitsubishi Lancer Evolution RS models

Middle/Good investment:

Nissan Skyline (GTS-T, GTS25t, GT-R [basic model], GTT, Nismo GTS-t, DR30, and all Altia Indiglo products)

Mazda RX-7 (Efiñi [JDM], RS, Type-R, Touring, FC3S Turbo II)

All Mitsubishi Evolution and Subaru Impreza WRX-STi models

Nissan Silvia/240SX/180SX (All models, especially the R-Tune S15, J's S13, and Sileighty)

Toyota Corolla Trueno/Levin AE86 • (All hatch models non-USDM)

Toyota MR2 (SW20 Turbo)

Toyota Supra (MA70/JZA70 Turbo Manuals and JZA80 SZ's)

Toyota Soarer (All models, although the older they get the less they'll be worth)

Datsun/Nissan Z (300ZX Twin Turbo, S30)

Honda S2000 (All models)

Honda Beat (All models)

Mazda AZ1 Autozam

Suzuki Capuccino

Toyota Aristo (Later models with 2JZ-GTE)

Lower End/Just an investment, pretty much guaranteed to make some money on, so long as the car is in decent shape:

All JDM cars not mentioned from all post 1984

Lexus IS300

Nissan 300ZX (All other models)

Nissan 350Z

Nissan 370Z

Toyota Supra/MR2 (All other models)

Mazda RX-7 (All other models)

Mazda Miata MX-5 (89-02)

—————

Now that I've finished the list, you know what to find. What will be interesting is just how high in value the NSX, Supra and N1 GT-R's will rise.

The key thing will be either buying cars that are stock, or tuned with extremely rare parts and shops. Some examples of rarity in parts:

Tomei, Abflug, NISMO, Pentroof, RE Amemiya, FEED, Veilside, Revolfe, Auto Garage TBK, Mines, R*Magic, Auto Select and other super expensive or rare, well recognized Japanese shops.

Also keep in mind that Automatic cars should not be crossed off the list. Within 15 years, almost all cars will be sold with Automatics anyways. However, Manuals will still have a higher value.

This is your best bet to make money. Put them away, make sure they're in good, solid, clean condition (No repairs, no hack job tuning, or small time "tune shop" setups), and remember to drive them every once in awhile. Enjoy your dream car now... And profit later.

Oh, and if you own a super rare classic muscle car now? I envy you. Because by the time the JDM cars raise in value, the Muscle Cars will be at the current 250 GTO investment territory.

Now, if only I could find some sunscreen...

DISCUSSION (29)

RacecaR > The-Ever-Socially-Apathetic TBAL
06/02/2014 at 15:10

Good, then it looks like I am safe from over inflation.

Yowen - not necessarily not spaghetti and meatballs > The-Ever-Socially-Apathetic TBAL
06/02/2014 at 15:15

Interesting. I've always heard that cars are typically a bad investment.

You mentioned the 250GTO, those are selling for 10's of millions these days, but that HAS to be a rare case, I doubt there are many cars that appreciated in value that spectacularly.

Roadster Man > The-Ever-Socially-Apathetic TBAL
06/02/2014 at 15:18

I see the 350Z going the way of the 240sx... Most of them will be wannabe drift missiles in 15 years. I agree that it'd be a good idea to pick up a stock one and store it in the garage. I think a stock/near-stock NA miata will be difficult to find in 10 years- you hit the nail on the head there. And anyone who picks up a stock MazdaSpeed miata and throws it in the garage will have a great investment in a few years. Those values are climbing big time.

They made an SW20 MR2 turbo? I thought they only supercharged the SW20 generation... Is there a JDM factory turbo SW20? That would be my new dream car.

Someday I WILL own a JZZ20 Soarer.

midengineer > Roadster Man
06/02/2014 at 15:21

The AW11 (1st generation) had a supercharged variant which is a pretty rare find. There is no factory supercharged SW20, only turbocharged for FI.

The-Ever-Socially-Apathetic TBAL > Yowen - not necessarily not spaghetti and meatballs
06/02/2014 at 15:21

39 250 GTO's were made in a year with a population of 3.2 Billion people.

That would be akin to a car being made now with a production run of 85. N1 GT-R's in R34 form were less than 40.

Really, it's not hard to see how they're worth so much when you adjust to how rare they were when they were first made, and how special they were as well.

Roadster Man > midengineer
06/02/2014 at 15:22

OH. I mixed up the AW11 and the SW20. My bad.

ZiptieMcBumper > Yowen - not necessarily not spaghetti and meatballs
06/02/2014 at 15:24

I'm not sure it's an urge to "invest" in '80s JDM cars so much as it is urging you to get "ahead of the appreciation curve" so you can get what you want at a reasonable price.

I look at it this way: 25-30 years ago, you could have bought a clapped out C2 'Vette in need of a restoration for a song. Today? you're looking at $15-20k just for the birdcage. If you're an average dude wanting a C2 'Vette, even if you're willing to do all of the resto work yourself, it's still going to get uncomfortably close to six figures.

The-Ever-Socially-Apathetic TBAL > Roadster Man
06/02/2014 at 15:24

Drifting is dying. It'll come back in about 20 years. But right now, it's the "Drag racing of the 70's".

IE, it may as well not exist.

Top Speed Runs are currently the big thing.

So I can't see people buying 350Z's for drift missiles anytime soon.

midengineer > The-Ever-Socially-Apathetic TBAL
06/02/2014 at 15:29

It will certainly be interesting to watch how these cars appreciate over the years to come. I honestly doubt any of them will rival the 250 GTO's insane price but I can see the flagship cars of each manufacturer gaining considerable value (sub 7-figures) in a short time period.

Grindintosecond > The-Ever-Socially-Apathetic TBAL
06/02/2014 at 15:33

Value and collectibility are based on a few things. How many were made? (250 gto = less than 100) Was it desirable when built? (250 gto = hell yeah and you needed Enzo permission to buy one) How many are left? (250 gto = 33 left)

So in this case it's desirable on that level of money. The issue here is how many are left of the regular cars, in mint condition, and people remember them fondly enough to want one again, and in that case, what variant of that model was the rarest one. Ie: The Plymouth HEMI-cuda manual that auctions for $100k now because only a few were made and a few left after crashes.

So let's look at why they want that beyond just a few thousand made? Well, how about there being not a single car like it to ever be made again. Loud, huge motor, brash, ballsy, attitude, etc.

90's Japanese cars that fit that description? Likely to never be built in the same spirit again? GT-R, ligthweight specials of the NSX's and Turbo Supras? etc.

We will see small performance cars. FWD civics, etc but the special edition performance models will be desireable. Ie: 323 GTX rally homologation special, 4,000+ built, 1200 imported to US.

Also remember how many of these cars were hacked up for street racing and crashed or left for dead after the parts were sold off? How many CRX-si's are around in stock condition? I haven't seen one in years....

Keep that in mind when shopping. Also any cult status car...GT86...will get extra points.

I'm trying to figure out how to get my dad's '71-240z back into the family before this price boost hits...that one is already liked more and more every year.

The-Ever-Socially-Apathetic TBAL > midengineer
06/02/2014 at 15:36

The GTO bubble will burst in 30 or so years.

It'll have one last hurrah, but once that generation that it was built in is dead, and the generation that were the children of THAT generation are almost dead, it's value will die with them, but its heritage and status will never die, sort of like the 1915 Mercer Raceabout.

Sn210 > The-Ever-Socially-Apathetic TBAL
06/02/2014 at 15:38

100% agree. Stock examples will command a premium, and you can already begin to see that today.

I'd love to buy as much of these cars as I can, and I should be able to afford to do so in about... well damn that would put me at mid-life crisis age...

The-Ever-Socially-Apathetic TBAL > Sn210
06/02/2014 at 15:50

I'm buying a stock RX-7 Bathurst R in 2015. I'm getting it tuned and slightly modified by RE Amemiya and Abflug.

I also plan to buy a Supra Twin Turbo RZ the year after, tuned by TRD or Revolfe.

Lastly, in 2017, I plan to buy an R32 GT-R V-Spec with modifications by NISMO, or Auto Select.

Keep in mind I'll be living in Japan in October.

My calculations suggest that if I dump 100,000 over the next 5 years on certain cars/parts, that I can see my investment multiplied by well over 25 times, netting me $2,500,000 or more in 2030. I suspect inflation to adjust so that the dollar equivalent today is roughly 3.4 times less than what it will be then.

That means that by dumping $100,000 into a collection, I am guaranteed to see a 700% return, at the very least.

T5Killer > The-Ever-Socially-Apathetic TBAL
06/02/2014 at 18:57

3 years till I can import a EB Falcon GT. To bad there was only 250 of those :(

JGrabowMSt > Grindintosecond
06/03/2014 at 10:25

Funny you mention HEMI'cuda manual...a friend of mine had one for a little while. It was a survivor class too. The only parts that didn't come out of the factory were the obvious battery and oil, but he was rebuilding the carb to put that back on. Thing was mint condition too...sad he sold the thing. At least I got to see it once and get a couple pictures.

n1zm0 > The-Ever-Socially-Apathetic TBAL
06/03/2014 at 14:19

Luckily we have been importing the 90s JDM stuff in Canada for the past 10 years, although it was a nice huge craze and I wouldn't mind getting an S15 now, the RHD issue here caused major conflict with politicians and insurance companies, the latter didn't want to insure anyone driving JDM (some still turn them away), you get a 16 year old in a 300 hp rwd drive car, there is going to be law breaking. It is nice to see these things in person on the street though I'll admit, but for us at least, buying one of these sought after cars is just not really a time sensitive issue, we still have loads of importers bringing all sorts of things, some from my city:

http://www.jdmtunersinc.com/VEHICLES.html

http://b-pro.ca/

http://www.zenautoworks.ca/archive.html

http://jdmconnection.ca/?page_id=7

http://www.importconcern.ca/

Alot of us who envied JDM cars in our teens and early 20s and bought them have moved on so to speak, but it's a different case here I guess, if only you could see how many BNR32s/Z32s/FDs/SW20s/IS200s/Soarers/Aristos/JZA80s etc are on the streets here in the summer, dime a dozen as much as civics.

The-Ever-Socially-Apathetic TBAL > n1zm0
06/03/2014 at 14:25

You're preaching to the choir bro. Born and bred Torontonian.

n1zm0 > The-Ever-Socially-Apathetic TBAL
06/04/2014 at 09:36

I should've figured it out since the stuff you're posting is stuff that's on the street here. My bad.

RotaryLove > The-Ever-Socially-Apathetic TBAL
08/07/2014 at 21:48

Personally, I find this article somewhat disheartening. The cars I've grown up wanting to own eventually are the same cars the generation before mine has grown up wanting to own. Being born in 1997 most of these cars are before my time (R32, R34, Twin Turbo Supra, FD RX-7, 300zx, NSX, etc.), but that doesn't stop my generation from idolizing them any less than our elders do. Most cars built in my lifetime I couldn't ever compare to the 90s JDM cars. Sure the Evos. STIs, R35s, Z33/Z34s, etc are cool, they don't entice me the same way. By the time I'm old enough, these cars will have appreciated so much I may not be able to justify purchasing one over another newer, better car. I'm positive someone will remind me of cars worthy of that midlife crisis.

Who knows maybe ignorance is talking here. I've got a long way to go.

RotaryLove > The-Ever-Socially-Apathetic TBAL
08/07/2014 at 21:50

It seems like drifting is thriving. Where is your evidence?

RotaryLove > The-Ever-Socially-Apathetic TBAL
08/07/2014 at 21:55

Lets see how that works out for you bud. Nothing ever goes according to plan, and it's just downright not very intelligent to try to predict the entire car market over such an extended period of time. If you're right, congrats, boohoo to me. I don't see your master plan netting you these huge profits, otherwise everybody would be doing it.

The-Ever-Socially-Apathetic TBAL > RotaryLove
08/07/2014 at 22:00

Words escape me.

RotaryLove > The-Ever-Socially-Apathetic TBAL
08/07/2014 at 22:15

Why am I under the impression the sole purpose of your incredibly vague post was to provoke a response from me. Your post is utterly meaningless, it could be perceived in many ways.

I'm not sure if you're calling me an idiot or just clueless.

The-Ever-Socially-Apathetic TBAL > RotaryLove
08/07/2014 at 23:01

I'm calling you "just clueless", yes. Because explaining it to you would be more time consuming than it's worth.

Actually, I'm more inclined to think that you're ignorant (not clueless) of the obvious style and market trends that I used to calculate my data with. If that's the case, then I encourage you to do some studying yourself. In the real world, we call this "economics".

RotaryLove > The-Ever-Socially-Apathetic TBAL
08/07/2014 at 23:25

I've studied economics before, and if there is any obvious "trend" it have to be that the market is incredibly volatile. I still don't think your plan is going to work, but that's just me. As I said in my original post "If you're right congrats, otherwise boohoo to me." I guess we can further discuss this in a few years when you'll apparently be a millionaire and I'll be a lowly little plebeian.

Also, if the idea is to buy a stock car and have it appreciate in value why would you modify it? I don't understand this. I'm under the impression a completely stock car would be far more valuable than a modified one, regardless of who modified it.

Nevin > RotaryLove
08/24/2014 at 21:24

Hey bud if you don't have anything good to say don't say it at all. FYI the reason no one is doing it with JDM cars is because there is a 25 year rule. No one in the right mind would invest money into a 60's-80's JDM cars with the exception of a few like skylines, early gen rx-7's and supras, bluebirds etc... The 90's JDM are stallions among ponies. I've done my research and I'm in the midst of importing an Audi RS6 legally under the 25 year rule. There are huge profits to be made, but only among those who understand the value of certain JDM cars. There's a select breed of people who can look at something (in this case a car) and realize there is a profit to be made over time or simply by flipping. TokyoBayAquaLine is on the right track. Rare cars make money overt time. Whether or not his calculations are correct, when it comes down to it there is money to be made. I've read a couple books on it but they are tough to get your hands on it. I disagree with modifications unless they are unique, beneficial and don't ruin the quality or structure of the car. Importing a car is tough work and cannot be done at the click of a button. It is not a get rich quick scheme. It takes a lot of time investment and I can see that TokyoBay has done that seeing his taste and general overall knowledge. His number of 2,500,000 seems far fetched I somewhat agree. His car taste is high end in regards to JDM in every aspect. Per say he sells these cars at 20 grand a piece down the road... that's close to about 100 cars with inflation included. Of course some may sell for much more but that just puts it into perspective. Confident and bold but with the right purchases and findings it can be done because the 25 year rule is going to do wonders in the next 10 years. People become millionaires importing random shit from Japan all the time... imagine importing something with way high profit margins.

RotaryLove > Nevin
08/24/2014 at 21:52

I see why you took the time to write a book, but it was unnecessary. I'm well aware it's possible to flip a vehicle for profits. I just felt it was necessary to tell him to lay off the crack pipe with those numbers.

3sgteguy > The-Ever-Socially-Apathetic TBAL
05/11/2015 at 09:47

Hey so lets say I agree with you and I want to buy a used JDM car... what do you suppose are the rules for “best investment”. Would a completely stock, clean title, unmodified car be worth most? Or would future “collectors” be okay with rebuilt motors, modifications, salvage title, repainted, etc?

Dsscats > The-Ever-Socially-Apathetic TBAL
06/21/2017 at 20:06

Not sure why this is popping up again now, but it shows just how accurate your predictions 3 years ago proved to be. R34s have increased in price an absurd amount, R32s have followed suit. JDM FDs are going for the mid 20s.