Investing in imported cars

I’ve been considering this myself. I’m on the mailing list for prestigemotorsport.com.au – they send you details of upcoming auctions in Japan.

Had originally been looking at the MR2s and 300ZXs. They can be picked up well below the yard prices. Looking up the price scale through, I think there’s some real dollars to be made. Check the following link – 1988 Bentley Turbo R in Japan, 90000km, $37 to 46K + mods & ORC depending on auction results.

http://www.prestigemotorsport.com.au/au/stock/details.asp?StockID=1424

Then checked the listings on Carpoint.com.au – a few 89 & 90 models between $69 & 100K depending on Kms.

Thats a pretty tidy profit – potential to double your money! One deal like that could fund the deposits for a few IPs!

Any accountants reading this – would CGT be applicable for such a deal? Is anyone aware of the number of deals you could do without being an accredited motor trader?

Another option in the auto business is the equivilent to the buy, renovate and sell property strategy. My brother works for a prestige motor dealer and often has to deal with people that pick up cheapish wrecked Ferraris, Porsches, Range Rovers, MGs etc at auction, repair and resell for a good profit. Due to the volume of parts they’re purchasing, my brother always does them a good deal, further increasing their profits. If you’re mechanically minded and have the contacts in the spare parts or crash repair, this seems to be a good money spinner. Plus, you get to drive a ferrari until you sell it!

Cheers,
Mike.