C63 507 Estate - thinking of putting into deep storage

[mark44]

Hi all,

Not posted here on a while, but I thought I'd air my 1st world problem.

I've owned my 35K miles Silver 507 estate for just over 6 years and still absolutely love it, probably the best car I've owned. The engine is just fantastic and the whole package just exudes that old skool cool. There are some exciting cars still being made, but they are just not going to make them like this again. I was pretty sure it would be a classic when I got, not that I bought it deliberately as an investment. I live in London and don't have any off-street parking so reluctantly have to keep it on the street.

Driving quickly on the road has become less of an option with traffic and cameras everywhere, so I've since got a lightweight track car to get my high speed thrills. My wife has a daily to put boring miles on.

Having driven the merc only 2-3K miles a year in the time I have had it, at the stage it's difficult to justify keeping it sitting outside, even though looking at it gives me joy. The only cars I would want to exchange it for would cost much more, and I'd feel even harder to justify.

So the conundrum is where we are at at the moment. Inflation is shocking, and selling the car for a big chunk of cash will immediately require re-investment if I don't want to see it the value eroded at the rate of knots. Anyone who invests knows the volatility of the markets, the likelihood of a real estate crash with interest rates on the rise and the absence of safe havens. Any ROI now comes with added risk. I have enough of that ATM tbh.

The logic is, take the money I would otherwise be spending on running costs (insurance, road tax, servicing etc) and put the car into long term storage. At least there is the possibility of appreciation, and I always have the option to bring out further down the line if I have a change of heart, and as a desirable tangible asset the value is unlikely to go to zero.

Anyway, I'd appreciate any thoughts on the matter or similar experience.

Cheers

Mark

 

[ALFAitalia]

It would need to be climate and humidity controlled storage environment.......In my experience even just storing cars in a dry garage is not enough and they seem to age and have more issues than cars that are being used. I see your view as far as investment goes......but to me that's a very sad life for a car that was built to be driven. If it was me and I was not going to drive it I would sell it and invest the cash elsewhere. Its not like you do loads of miles to depreciate it horribly so just enjoy it. I too would worry about parking it on the road.....but luckily I can squeeze three cars on my drive....just!. Just my 2 pence worth!

 

[MikeInWimbledon]

What a great car: seems a shame to let it go. But if you're not using it much, can you justify keeping it?

As regards what to do with the cash, I've got no sympathy for "investing" it in property. Very conservative investing in equities will give you at least 8% return a year, after tax, if you use your ISA and pension tax shelters. An IFA or accountant can talk you through the safest routes, and safeguard you from insider-dealing / share tip shysters.

Be wary of storage and maintenance costs if you're considering "proper" long-term storage. They do end up being more than budget.

You need to "form a view" about what might happen to the value of your car. Loads of variables: how much will it go up, what kind of maintenance will it need, and what's going to happen to tax and fuel prices?

I wince when I see BMW M635's like my old one going for £40k, thinking that I should have kept my old one, but it would have cost me far more than that to have stored it.

But at the end of the day isn't life always about faster cars, younger women, older whiskey and more money?

To view this content we will need your consent to set third party cookies.
For more detailed information, see our cookies page.

Accept third party cookies

 

[badgx]

Keep it if you can, you'll be lost without it. I would, and drive it on them dry summer weekends

 

[Rich764089]

the likelihood of a real estate crash

I'd suggest it will be a correction not a crash. I'd certainly put money on that

I'd say find better roads and enjoy the car, it's not going to lose massive value at your mileage compared with storing it. These cars and life and for enjoying. If you really need the money for other things, sell it, otherwise enjoy it.

 

[Petrol Pete]

It might be only a matter of time before cars like this become a 'closed course only option' as governments go blindly down the rabbit hole of zero carbon (whatever that is) and not just 'tax them off the road altogether' but simply banning them outright . My old but rare C55 estate is giving me a bit of a headache right now , do I just keep driving/enjoying it and ignore the rust thats growing or do I spend almost what the car is worth getting it fixed properly and keep it for summer use only ? only to see my 'investment' go up in smoke in a government inspired mess in 6 or 7 years time .??

I suppose there might be a market for them in RHD countries like South Africa or Australia if it can be exported as scrap .

 

[jimjamiejames]

Sell the boring car(s) and use it as the daily.

 

[Bobby Dazzler]

Drive it more often, or sell it, but don’t store it unless it is to get it safely and securely off the street whilst you are continuing to drive and enjoy it.

Proper storage is expensive, and unless you get value from using it as a car, then the cost of storing it will more than offset the underlying appreciation.

To get top money for it in future it will still need to be maintained, and cars that barely move have a habit of coating as much in repairs as cars which are used and abused.

Who knows what the long term future values will be? If you use and enjoy it and in 10 years it’s worth buttons, then you will have taken value from driving it.

Although you’d be gutted if it’s worth buttons after 10 years of cost and 10 years of not enjoying it. Maybe not likely but it’s certainly possible.

 

[Rich764089]

Good advice

 

[Fady]

What a great car: seems a shame to let it go. But if you're not using it much, can you justify keeping it?

As regards what to do with the cash, I've got no sympathy for "investing" it in property. Very conservative investing in equities will give you at least 8% return a year, after tax, if you use your ISA and pension tax shelters. An IFA or accountant can talk you through the safest routes, and safeguard you from insider-dealing / share tip shysters.

Be wary of storage and maintenance costs if you're considering "proper" long-term storage. They do end up being more than budget.

You need to "form a view" about what might happen to the value of your car. Loads of variables: how much will it go up, what kind of maintenance will it need, and what's going to happen to tax and fuel prices?

I wince when I see BMW M635's like my old one going for £40k, thinking that I should have kept my old one, but it would have cost me far more than that to have stored it.

But at the end of the day isn't life always about faster cars, younger women, older whiskey and more money?

To view this content we will need your consent to set third party cookies.
For more detailed information, see our cookies page.

Accept third party cookies

When you say £40K it makes it sound like the M635 has really appreciated in value but this is not the reality since you also need to factor in 35 odd years of inflation. People tend to forget this, but a pound obviously got you far more then than it would now, How much was an M6 in say 1987? £40K now gets you what £13K would have according to an online inflation calculator, so this is the value you should 'see' when looking at those ads. From a purely monetary perspective at least, it definitely would not have been worth hanging on to it for that.

In the OP's shoes I would definitely be driving it and if not I would sell it. Storing it is likely to be costly a bit of a hassle and not really do the car much good imho.

 

[MikeInWimbledon]

When you say £40K it makes it sound like the M635 has really appreciated in value but this is not the reality since you also need to factor in 35 odd years of inflation. People tend to forget this, but a pound obviously got you far more then than it would now, How much was an M6 in say 1987? £40K now gets you what £13K would have according to an online inflation calculator, so this is the value you should 'see' when looking at those ads. From a purely monetary perspective at least, it definitely would not have been worth hanging on to it for that.

In the OP's shoes I would definitely be driving it and if not I would sell it. Storing it is likely to be costly a bit of a hassle and not really do the car much good imho.

While you and I agree, I sold my ten year old M635i 27 years ago for £8k and according to the Bank of England's inflation calculator the general rate of inflation over those 27 years mean that it would be worth 35k ( £40k less seller's fees) now.

My point was that it's not the inflation that matters, it's storage costs, maintenance costs, and opportunity cost of capital (typically 8%). If I'd invested that £8k, it would be worth £60k today, and I wouldn't have spent tens of thousands on storage and maintenance.

We should store things that we love, but don't think that classic cars are an investment. They're not, they're a hobby. Which is fine, but just know what you're doing, what the alternatives are, and that "you can't take it with you."

Here's the Bank of England's rather clever and precise general: Inflation calculator

 

[rOckyAMG]

Don't store - just drive it. If that doesn't work then sell it

 

[SW18]

Here's an idea: sell it now as prices seem high. Then buy a plain vanilla C63 with lots more miles on it (and a good service history) . Then enjoy it, don't think about long-term appreciation, and don't worry if it gets a little shabby over time - the driving experience will still be great.

 

[sgregory124]

We should store things that we love, but don't think that classic cars are an investment. They're not, they're a hobby. Which is fine, but just know what you're doing, what the alternatives are, and that "you can't take it with you."

100% agree with this. But I will say, I think some classics (in my opinion) are worth storing as an investment, notably certain vintage Ferrari's, Lamborghini Muira's etc), i'd say most Merc's are not - unless you're lucky enough to have an original or restored gullwing SL or something of that ilk.

As others have said and without wanting to sound harsh but - drive it or get rid - it's a chunk of depreciating metal at the end of the day.

 

[Skd884]

Do as you say the value of your car only goes one way as time passes - North

That way whenever you do want to enjoy it you have the option to do so, storage/sparse use for the win

Do not sell your 507, you WILL regret that option.

 

[mark44]

Hi all,

Thank you so much for your replies. Some very good points in there. I'm not committed to anything either way so its all food for thought. Doing nothing is still a very viable option!

This is the nicest car I've owned and has already given me lots of pleasure but I would be very sad to see it go. The price/value is a sunk cost to me, though annual expenses are not. An imminent insurance renewal (£1000+) brought me here. Getting into my wife's 'rubbish bin on 4 wheels' however would stress me out if I knew it was the sole vehicle. She never cleans it inside or out and the kids ensure there is always a layer of crisps, sweet packets and general debris wherever you look. Ugh - I feel tense just thinking about it!

A large part of my frustration is my inability to drive the merc - the way I want to anyway. Living in London is the obvious big red flag, as any worthy road will automatically come with a journey in itself to reach. Most of the opportunities to use it will therefore involve trips with the family, where ironically I can drive my wife's car more quickly as its less conspicuous (to her) to do so. I also hate having to keep it on the road, particularly with every available space within visible distance from the house having sap/bird crap dropping trees over them.

I haven't looked into storage costs for a while, but remember thinking climate controlled options were not horrendous which is why it's been lingering in the back of my mind.

Be wary of storage and maintenance costs ... They do end up being more than budget.

I may be in for a shock...

 

[MikeInWimbledon]

Hi all,

Thank you so much for your replies. Some very good points in there. I'm not committed to anything either way so its all food for thought. Doing nothing is still a very viable option!

This is the nicest car I've owned and has already given me lots of pleasure but I would be very sad to see it go. The price/value is a sunk cost to me, though annual expenses are not. An imminent insurance renewal (£1000+) brought me here. Getting into my wife's 'rubbish bin on 4 wheels' however would stress me out if I knew it was the sole vehicle. She never cleans it inside or out and the kids ensure there is always a layer of crisps, sweet packets and general debris wherever you look. Ugh - I feel tense just thinking about it!

A large part of my frustration is my inability to drive the merc - the way I want to anyway. Living in London is the obvious big red flag, as any worthy road will automatically come with a journey in itself to reach. Most of the opportunities to use it will therefore involve trips with the family, where ironically I can drive my wife's car more quickly as its less conspicuous (to her) to do so. I also hate having to keep it on the road, particularly with every available space within visible distance from the house having sap/bird crap dropping trees over them.

I haven't looked into storage costs for a while, but remember thinking climate controlled options were not horrendous which is why it's been lingering in the back of my mind.

I may be in for a shock...

Windrush are at the top of their game: Car Storage Prices | Windrush Car Storage

Jordans (below) are said to be a notch below but still good, if Surrey's convenient: Jordans – Car Storage

But both are more expensive that a space in a friend's barn - such as the one Chris Harris uses (below)

 

[SW18]

Windrush are at the top of their game: Car Storage Prices | Windrush Car Storage

£9,300 per year

I'll bet they have some amazing cars tucked away if that's what people pay to store cars with them...

 

[Gavnr]

Thought about moving to a house with a garage?

 

[MikeInWimbledon]

£9,300 per year I'll bet they have some amazing cars tucked away if that's what people pay to store cars with them...

Windrush are at the top of their game. It's only money.

If you're someone like Bill Gates or Richard Branson, with only one mews garage behind your gaff on Holland Park, where else are you going to keep your favourite toy? You don't want to store it in some godawful dusty, damp central London concrete multi-storey for £6k a year.

If you want a glance at what Windrush have got stashed away, here's a 15 minute look into the place.

To view this content we will need your consent to set third party cookies.
For more detailed information, see our cookies page.

Accept third party cookies