Low Mileage -- High Costs?

There is a growing sub-market for low-mileage examples of classic and sportscars. What? Is this something new? Not at all. But the extremes of the marketing and sales of cars based on non-use is a bit scary.

We all know about Ferraris. It's like you have normal, high depreciation for age. And then higher depreciation on mileage. Does anyone see a modern era Ferrari with normal driving mileage numbers? I don't. Of course, it doesn't matter if you drive it or not, recommended (highly) servicing is based not only on mileage, but on age, whether you drive the car or not. Until recently, it was as if they made servicing a profit center as valuable to dealers as the initial sale. That you have to take out an engine to change a cambelt on a car used for negligible mileage. And, as they say, 'While we are at it' can add thousands in additional work. On a car that might have a couple of thousand miles on it. Thank god servicing is getting more rational the past few years. But still, drive or not drive the car, figure out what every week depreciation is costing you. It's up there with Rolls! Of course, as they say, if you have to worry about it, you can't afford it.

But let's get past Ferrari. It's still an amazing marque. And there is a rationalization of mileage for the older models prior to the 360's. Or should I say, the higher model ranges like the 288GTO's, F-40's, F-50's etc. Use is not as important with cars with limited mintages.

Now, what about other marques? Well, there is a group of Porsche specialists here in the US, in the UK and EU that are pushing up the numbers on early 911's. Well, it's expected. There is attrition naturally. And rust and restoration costs. But it's the ultra low mileage example pricing that is worrying. I'm seeing cars going for two, three, four and more times market value for a car with just a few thousand miles. It's like Ferrari fever. I'm sorry, I don't put the 964 Turbo in a 993 Turbo S range. But since there is a finite number of Turbo S's around, dealers need to play the next nearest hand. And 356 cabs are not Speedsters. Heck, 356 Roadsters aren't Speedsters. So while the price of restored 356 Speedsters has been pretty much stagnant in the under 200k range, Roadsters that had a mild premium over Cabriolets have been pushing up and up. 993 prices have stabilized since the replacement 996's are going for dirt money. And now impact bumper cars are starting to slowly move up. I, for one, while I appreciate the bullet-proof engine, don't see them going higher than 964's and 993's.

But there is another worrying aspect to not only Ferraris, Porsches, and other sports cars. Low mileage equals low use. And I don't care what car we're talking about, things go with age. Fuel and brake lines, rust, mechanical parts lose their lube, rubber and fittings age. And worse. An unused car can literally be a dangerous car. So in addition to paying a premium of no miles, you have to add re-commissioning  costs to the base purchase price. Honestly, I'd rather have a loved car, one that the previous owner not only maintained but used as it was meant to be, than a static display.

So it's a balancing act between cost, mileage, maintenance, and condition. It's up to you on whether the price asked takes everything in account.