How Many 2017 Ford GTs Could You Buy if You Won the Powerball?
Tonight is the big night. The Powerball jackpot is at an astonishing $1.5 billion! Now, as car geeks, we probably all have a list of vehicles we’d like to buy if we were to win. But what if you’re looking for an investment? Is the Ford GT a good investment. Just how many could you buy?
You might look at the recent resale value of the Ford GT and see a good investment opportunity. The last-generation Ford GT is the only vehicle built since the year 2000 that has gained in value. That alone makes it potentially a good investment opportunity.
Why buy more than one? Well, that’s easy. The more of them you own, the more your investment will increase. They’re allegedly only making 250 of them per year, so you’d be making them even more scarce.
So just how many could you buy? Well, the cash payout is $930 million. If you remember finance class and the future value of money formula, you know to always take the cash lump sum.
We used usamega.com to determine our after-tax amount, and since I’m in Ohio I’m going to use that result. But you can also view the lump sum total for your state.
That means we’ll be taking home $660,300,000. Still not a bad payout. We also believe that the Ford GT will sell for approximately $400,000. Add on 7% for the sales tax, and that brings us to a total of $428,000 per Ford GT.
That means you could buy 1,542 Ford GTs with your lottery winnings. That’s over 6 years worth of production at 250 per year! That probably means you could buy every single Ford GT that Ford ends up making.
But that’s not the end of the story. We’re considering buying these vehicles as an investment, and not just so we can drive like madmen around a racetrack (though we would do that). The last generation GT had, at the highest point, a starting MSRP of $149,995. That means, with tax, we’re looking at $164,493.58.
A 2005 Ford GT sold at auction with Barrett-Jackson last year for $352,000. It would’ve been a 10 year old car. So in 10 years, the Ford GT sold for 213.99% more than what was paid for it.
Are you still following me? Good.
Now, the Ford GT that was sold at auction wasn’t a special edition or limited version. Since we’d be basically buying the entire production run, odds are the value would go higher. But we don’t have any way of knowing exactly how much.
So if you bought all of the Ford GTs and sold them 10 years later at a 213.99% increase over what you paid for them, how much money would you have?
Now, is that a worthwhile investment? Here’s where it gets tricky. The stock market, historically, gains at 10% per year. So if you took the entire lump sum of $660.3 billion and invested it, after 10 years it’d be worth $1,712,648,146.40.
So while the Ford GT would be a good way to spend your money, buying all of them wouldn’t really help you any more than just investing in the market.
But keep in mind, I’m not a lawyer. I’m not an investment advisor. Investing is a risk, and your investment may decrease in value. Do not take anything I say seriously, especially if you win the Powerball tonight.
What do you think? Let us know over in the forums!