Month: February 2020

Overview

This must be the least loved of all 911 generations: purists (who rarely buy cars, but prefer to vent their anger publicly) hated its liquid-cooled engine, its modern pedal layout and the look of its headlights shared with the 986 Boxster. We can now say that they were all wrong. The 996, launched in 1997, was 80 kg lighter than the preceding 993, had a 50% stiffer body and was very successful, selling 175,000 units over ten years. Numerous changes to the driving experience made the car’s performance more accessible to new customers, and sharing the front part of the body structure (forward of the A-pillar) with the 986 Boxster saved the Porsche company from extinction: a great feat by Wendelin Wiedeking. 38% of parts were shared with the Boxster, no mean feat of engineering.

The underrated car is the cheapest way of getting into 911 ownership and is much better than the numerous internet “opinions” suggests. In recognition of that, the values of the facelifted version (2001) have already started to rise. The Turbo and the GT3 are real gems, especially the latter, as it is light and has an uncanny balance. The 996 is more suitable for novice supercar drivers than any of its predecessors due to its longer wheelbase (better high-speed stability) and the inclusion of electronic stability control.

Yes, it does not display the rawness and the scary ferocity of earlier air-cooled 911s, but for many, that is a good thing. There is a lot of negative publicity surrounding the engine’s IMS bearing (intermediate shaft) and a propensity for cracked heads, but the phenomena are not nearly as widespread as the internet would lead you to believe.

Engine

The dreaded Intermediate Shaft bearing discourages many people from buying a 996. The intermediate shaft drives the camshaft from the crankshaft, and inferior bearings were initially used; when starved of oil, the bearing fails, thus causing catastrophic engine failure (pistons hitting valves). A rebuild after such damage may cost as much as 10,000 euros or more, but only 8% of the cars produced were affected; please check for proof that this has been rectified. It is assumed that if the defect (which gives no prior warning!) has not appeared up to a mileage of 80,000 kilometers or more, it is unlikely to appear: but it’s better to be sure the work has been done.

Cracking cylinder heads are less widespread than people think, and a borescope inspection can set your mind at ease. Despite internet rumors, also cars with higher mileages can suffer from this, and the later 3.6-liter engine is not immune either. The engine in the GT3, GT2 and Turbo is based on a different block and is not affected by the head cracking problem.

Cars that have been left standing for long periods of time suffer from all kinds of problems. Exhausts corrode. lambda sensors and air mass sensors are often faulty.

Gearbox

Neither the manual gearbox nor the Tiptronic is known to suffer from any serious problems. Listen for unusual noises during the test drive, and check the maintenance records.

Bodywork

Cars that have driven all year round, including on salt-covered roads in winter, may have corrosion on the floor. Rust may also appear in the front fenders, but this is almost always an indication of unprofessionally repaired collision damage. A car that has not been used regularly can suffer from various corrosion issues related to condensation.

The front-mounted radiators and coolers suffer stone and other debris damage, and they also corrode, usually because leaves are left to rot in the radiator openings. Replacements are necessary, and not very cheap. Driving around with damaged or blocked radiators can cause the engine to overheat, with permanent damage as a result.

Headlamp lenses go cloudy and must be polished or replaced.

Chassis

Unless the car has been crashed and badly repaired, the suspension should be in good shape. Replace all bushes and shock absorbers for peace of mind and for a safe driving experience. If control arms squeak, they may need replacement, but it is not prohibitively expensive. Check that correct parts have been used for brakes etc.

Interior

The company was cash-strapped at the time of the start of 996 productions, so many interior plastics were of inferior quality, and it shows. They display wear and look cheap. Check all switchgear, make sure everything works. The PCM navigation/infotainment system of the first generation was horrible and rarely worked even when new. Thin leather of lower quality was used for seat trim, and it has a tendency to stretch and wear out in a nasty way, especially on the driver’s seat. The interior was facelifted in 2002, and from that time onwards better quality plastics were used.

History

1997: The 996 series launched in Frankfurt in September

1998: Carrera Cabriolet available, followed by the AWD Carrera 4, equipped with the Porsche Stability Management (PSM)

1999: the first GT3 is launched, with a high-revving 360 hp engine

2000: Turbo launched with 420 hp, followed by the GT2 with 462 hp

2001: facelift, new headlights, improved interior. The 320-hp 3.6-liter engine replaces the 300-hp 3.4-liter unit. Carrera 4S and Targa was shown.

2002: factory power hike to 345 hp available, more power for GT3 and GT2

2003: Turbo also available as Cabriolet. GT3 RS homologation model launched

2004: 911 Turbo S with 450 hp launched

2005: end of production in July, replacement by 997

How much to pay

• Project: €20,000 – €25,000
• Good: €29,000 – €100,000
• Special series: €90,000 – €330,000 (GT2,3)

The DRIVERSHALL Verdict

The underrated 996 is a great entry-level Porsche 911, very good to drive on the road every day, and able to acquit itself on a track as well. Maintenance records and an inspection by a specialist are crucial. If the heads show no sign of cracking, and the IMS bearing issue has been addressed, the car can potentially be a source of fun for many years to come. The GT3 is very special, a precision tool for track work, much more rewarding to drive than the frighteningly rapid GT2.

Images: Porsche AG, Newspress, Tom Wood ©2016 Courtesy of RM Sotheby’s, Remi Dargegen ©2018 Courtesy of RM Sotheby’s

This is without a doubt my favorite Ferrari model. It has the classic front-engine, rear-drive proportions, a powerful, sonorous engine, and its shape simply screams “the Sixties”. The later Daytona started another era and ended the period of romanticism at Ferrari. The 275 series was launched in Paris in 1964, with two models, the 275 GTB Berlinetta/coupe and the 275 GTS drop-top. It was high time, as the 250 GT series was already past its prime. The new car had a tubular frame, the gearbox located in the rear for better weight distribution, and independent rear suspension in place of the primitive cart springs of earlier models.

It was the first roadgoing Ferrari with four-wheel independent suspension and the last which was sold with wire wheels (in its earlier iterations, later ones had steel rims). The engine was a final stage of development of the famous Gioacchino Colombo V12engine, with one overhead camshaft, and a capacity of 3286 cc. Pininfarina infused the shape with eternal beauty, and Scaglietti made the bodies. If Brioni made cars and not suits, they would look like this.

The first cars would go very light in the front at high speed (aerodynamic lift), so after a while, the design was updated: the nose was lengthened, and a torque tube was added to ameliorate the stability and durability of the drivetrain. Later another spate of modifications was performed, and it transformed the most beautiful Berlinetta into (almost) a fire-breathing monster, named 275 GTB/4. Another overhead camshaft was added to every cylinder bank, and a slight bulge was added to the hood. Only 330 Four-Cam cars were built, with 20 horsepower more than the previous standard model.

It is widely believed that the Ferrari 275 GTB/4 is a pinnacle of Ferrari performance and handling of the era, a collector’s car which can provide an uncommon level of pleasure for its driver. Today, when regular 275 GTBs start at about 2 million dollars, the slash-four model can be priced at well over 3 million, with the best ones fetching as much as 4,000,000 US dollars. The model was superseded by the 365 GTB/4, usually known as the Daytona (but never called that officially).

In period, a car capable of 258 km/h and weighing only 1100 kilograms was extraordinary, but not very strange: lots of sports cars were light, as the dawn of the passive safety age was still far away. Today it seems featherweight and will surprise a modern driver with the quality of its responses. The Holy Grail of the 275 GTB family is the alloy-bodied car, lighter and more corrosion-resistant than its steel brethren, as only around 80 were built. As with any high-value classic Ferrari, Ferrari Classiche certification is essential, and a full historical record of ownership plus all maintenance records and restoration documentation is an absolute must.

If I had the funds I would buy one today.

To celebrate its landmark centenary year in 2019, Bentley will introduce a special edition model inspired by one of its iconic racing models, at the Geneva International Motor Show (05.03.19). Visit www.bentleymotors.com/CentenaryEdition and register your interest to stay informed.

In 1919 Walter Owen (W.O.) Bentley created a company with a simple objective: to build “a fast car, a good car, the best in its class”. This guiding principle has driven Bentley ever since, pushing the brand forward and making it a leader in automotive luxury around the world today. The 10th of July 2019 marks Bentley’s 100th year and this extraordinary milestone – reached by only a special few companies – will be a cause for celebration of the company’s history, its global success today and its exciting future.

The company’s headquarters in Crewe is home to all of its operations including design, R&D, engineering and production of the company’s four model lines, Bentayga, Continental, Flying Spur and Mulsanne. The combination of fine craftsmanship, using skills that have been handed down through generations, alongside engineering expertise and cutting-edge technology is unique to UK luxury car brands such as Bentley. It is also an example of high-value British manufacturing at its best. Bentley employs around 4,000 people at Crewe.

Find the original post in the blog of Gapless App.

Classic cars are an emerging asset class that has become increasingly reliable over the past ten to twenty years. In other words, it’s a good game to get into. However, for most investors, the classic car market can seem complicated and opaque. So where should curious investors start? One approach is to familiarize oneself with classic car indices, just as one would do with equity markets. One could also find an expert to get advice from, or go to car shows and start asking around, but classic car indices are the most readily accessible entry point to those doing research from home.

Investing in cars, when done well, can not only be lucrative but also an exciting and rewarding hobby. However, be warned that the classic car scene can be more treacherous than traditional asset classes. Lack of transparency and regulation combined with growing hype mean fraud is common, so caution is paramount. This being said, anyone willing to do their research and accept help from trusted experts should have no trouble avoiding any scams they might encounter. 

Buying a used car can come with all kinds of pitfalls, read our guide to learn how to come out on top!

Market cap weighted vs price weighted Indices

Most equity indices are market cap weighted, meaning that the individual components of these indices are weighted according to their market capitalization. The S&P 500 and NASDAQ are examples of such indices. A minority of equity indices are price weighted, notably the DJ Industrial and Nikkei 225. Individual components in these indices are weighted based on their price per share (or in the case of cars, price per car). In the classic car world, this distribution is reversed. Most classic car indices are price weighted, especially if the index in question tracks a small number of cars. This means that when the prices of the car models in a classic car index rise, the index rises with them.

The main classic car indices

The following section will introduce the most prominent classic car indices. The purpose is not to explain the indices’ constructions, but rather to present some background and introductory considerations for each index. Most index providers make some of their data available for free, but charge for more detailed figures. It is important to mention that many of these indices are quite new. Although enthusiasts have traded classic cars for over a century, investors have only been using financial instruments to analyse this market for the past 15 years or so. This doesn’t discount the information one can glean from indices, but it should still be considered.

HAGI Indices

Historic Automobile Group International (HAGI) was the first serious player in classic car indices. It is an independent investment research house and think-tank with specialised expertise in the rare classic motorcar sector. In 2009, HAGI started using rigorous financial methodology usually associated with more traditional investments to track classic cars as an alternative asset. HAGI puts out 6 indices, each pertaining to a specific sector of the market. They are as follows.

1. “Top Index” a general index for rare automobiles that incorporates the top 50 most valuable car models on the market.
2. “Top ex. P&F” excludes all Porsche and Ferrari from its figures. This can give owners (or prospective buyers) of less popular brands a more accurate picture of the section of the market that pertains to them.
3. “F Index” tracks only the Ferrari market.
4. “LPS Index” tracks only the Lamborghini market.
5. “MBC Index” tracks only the market for classic Mercedes-Benz cars from between 1920 and 1980.
6. “P Index” tracks only the Porsche Market.

The Knight Frank Luxury Investment Index also has a classic car index, but it uses data from HAGI Indices.

Hagerty Indices

Hagerty is an American company that specializes in insurance for classic in luxury vehicles. This specialization gives Hagerty a uniquely detailed view of the classic car market, and it uses this position to publish various classic car indices that are widely respected. The indices are inflation adjusted and track the global market. Hagerty’s indices are as follows.

1. 1950′ American tracks classic American cars manufactured in the 1950s.
2. Affordable Classics tracks classic cars valued at under $30,000.
3. Blue Chips tracks only the most expensive cars.
4. British Cars
5. Ferrari
6. German Collectibles tracks Porsche, Mercedes-Benz and BMW.
7. Muscle Cars

The K500 Index

The K500 index is put out by Kidston, a Geneva-based dealer and consultant firm with has its finger firmly on the pulse of the classic car market. The index tracks 500 cars by analyzing data from some 30,000 constantly growing auction results from over two decades of sales. Each car of the K500 has been chosen for its historical and intrinsic value. This insistence on the consideration of intangible value makes the K500 a good indicator for gauging the potency of some of the subjective factors that define a classic car’s value, like it’s racing history. The K500 also provides subscribers with curves tracking the price fluctuation history of each car in the index. Finally, every car in the K500 is given a score between 1-100 to denote how often this model is bought and sold. Cars with high scores are considered particularly desirable. 

The DOX Index

The German Association of the Automotive Industry (VDA) started publishing the Deutscher Oldtimers Index since 2010. This index tracks German classic car market. It is calculated once a year and incorporates 88 cars that are selected to reflect the German market that year. The average price of the cars included in the DOX is less than €50,000, which differentiates this index from most of the others on this list. The constituents of the DOX Index are changed every 3 years.

The DOX is useful for understanding the enthusiast market segment – which accounts for a majority of the market’s sales volume – in isolation from the hyper high price market, which draws much more attention but is largely irrelevant to the average investor.

The OTX Index

The other significant German index for classic cars is the OTX Index by Südwest Bank. Like the DOX, the OTX is released every year and tracks the values of 20 cars by South German manufacturers. the goal of the OTX is to reflect price fluctuations in the German classic car market.

Putting the indices in perspective

By monitoring the main international classic car Indices, you can start to compare the evolution of this relatively new but promising asset class. Since the end of 2015, classic car prices have been trending up or sideways. While the most expensive classic cars are probably out of your price range, the market is still worth getting into.

In conclusion, we could advise you not to look too much at the empirical data derived from classic car indexes as well as the price fluctuations they are capturing, but simply enjoy driving your classic car(s) for the sake of it.