A reader wonders if the Audi R8 would make a good investment
The 2020 Audi R8 is available with a V10 engine, making it a rare model in the industry
It may not gain any value in the foreseeable future, but it’s still a great car
One reader in the US is interested in buying a performance car that could eventually increase in value, and he’s wondering if the 2020 Audi R8 could be that car.
I want to replace my 2017 Porsche 911 Turbo and I am considering either the new Turbo S or an Audi R8. I owned a 2012 R8 with the V10 and a six-speed, and I loved it. I am not really a fan of the new R8, but I’m wondering if the fact that this is probably the last generation with a V10 engine could make it a good investment?
What We Think
There are a lot of parts to this short question. Before going into the R8 as an investment, let’s talk about the car itself, and more importantly the other car you are considering.
If you’re considering a new 911 Turbo S, we can only guess that you liked your 2017 911 Turbo. If that’s the case, know that the new Turbo S, although we haven’t gotten our hands on it just yet, appears to be better in just about every way. Every review we’ve read on the new Turbo absolutely raves about the car.
Now, you say you’re not really a fan of the new R8. Why exactly? If it’s because it doesn’t come with a six-speed anymore? That shouldn’t stop you if that’s the case. Manuals are unfortunately a dying breed and believe us, 10 minutes in the 2020 R8 and you will forget all about the manual, like you forgot about it in the 911 Turbo. In other words, that shouldn’t stop you from making the move to the R8.
Now, if you drove the new R8 and didn’t like it because of how it handled, the ride, the performance, the sound or the practicality, or whatever other tangible reason, then it’s potential as an investment shouldn’t make you purchase a car you won’t enjoy.
We take it this will be a car you drive often. The R8 happens to be a very easy to drive, comfortable exotic performer. If we had to choose a daily driver in this segment, it would come down to the 911 or the R8, with the R8 being the more exciting option. It’s essentially an exotic car with an exotic engine, and it feels more exclusive than the 911. Even the Turbo.
As for its potential as an investment, obviously the V10 engine makes the R8 a potential collector’s car. Previous R8 models like your six-speed 2012 model have kept their value well, but the 911 also keeps its value. The 911 Turbo isn’t the best investment historically, but 911s are notorious for not depreciating.
But, again, your first criteria should be buying a car you will enjoy. You’re considering two vehicles that will at the very least keep their value better than most in the segment, and no one can know if one will actually increase in value in the future. Do we think the R8 will explode in value in the next 10 years? No. Do we think it’s a great car? Yes. But the new 911 Turbo appears to be better so if you can get your hands on one, we say buy a new 911 Turbo.
Ultimately, you can’t buy a car you won’t like driving.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
