Jeez I just wonder why prices tanked in 2008. God what a mystery . Had to go look and see what snot nosed tard wrote this dribble. BY ALEX TAYLOR III, SENIOR EDITOR-AT-LARGE@FORTUNEMAGAZINE-
Baby boomers are losing interest in vintage Detroit iron, and millennials just don't seem to care enough to help keep prices up.
Baby boomers, who have been reshaping the economy for their entire lives, are doing it again, but in a less macro way. They are depressing prices in the collector car market because they're losing interest in classic American cars from the 1950s -- the cars of their youth.
The bear market in American classics stands in sharp contrast to the demand for historic exotic and foreign cars, which has strongly rebounded from its post-recession slowdown. Last August, a 1967 Ferrari was auctioned for $27.5 million -- a record for a road car. A few months earlier, a 1954 Mercedes race car went for $29.6 million.
Not so for '50s cars from the old Big Three as well as now-defunct makers like Studebaker and Packard. The evidence comes in the March issue of Car & Driver, in an article by Rob Sass of Hagerty Insurance, which specializes in insurance for antique and vintage autos. According to Hagerty's index of prices of '50s American classics, Sass writes, activity peaked in August 2007 and hasn't recovered. The decline affects everything from popular favorites like the Chevy Bel Air to rarities like the Packard Caribbean convertible.
In their prime, baby boomers were big buyers. But now, Sass writes, "their interest in the hobby is starting to wane." Nor does he see the market rebounding any time soon. The millennial generation doesn't have a comparable level of interest. "It's questionable whether they will care about the cars of their grandfathers and great-grandfathers -- or any cars," he adds.
Here are some data points from the post-war era of tailfins, two-tone paint jobs, and whitewall tires. The condition of the cars ranges on a scale from condition four (daily driver with visible flaws) up to condition one (perfectly clean, groomed down to the tire treads). In a few exceptional categories buyers have made money by catching the peak of the market, but the overall trend is down.
The best advice for someone considering a classic car as an investment is to buy what you love; any appreciation should be secondary to the pride of ownership -- and the satisfaction of preserving a slice of history for future generations.
The guys who have these vast collections are old farts like us and they will be dead soon and don't give a damn. Can you imagine their kids disappointment when they go to sell these collections at ten cents on the dollar. We've already seen this happen in several cases. I'm sure there are not too many here that have to worry about this.
The guys who have these vast collections are old farts like us and they will be dead soon and don't give a damn. Can you imagine their kids disappointment when they go to sell these collections at ten cents on the dollar. We've already seen this happen in several cases. I'm sure there are not too many here that have to worry about this.
Warren
And the younger ones here will be buying them at 10 cents on the dollar can you imagine their Glee. Cant take em with you so firer em up and drive the snot out of em.
I was down in Goderich ended up in Ken McGee's auto books shop. I brought up an old 1920 REO service manual I've had for a few years. Hes happy to buy it from me, but we had a good sit-down chat about old cars and whatnot. REO stuff just isn't popular. Why? Well the guys that remember it are mostly gone or too old to drive.
I can't think of a classic car as a cash investment like real estate or something. Its a fun investment.
A million dollars couldn't have put a bigger smile on my face than ripping around in Calgary in my '49 dodge.
Got to a red light and there was a new Maserati on my left. Convertible. Lovely. Pedestrian nearby yells out
"HEY NICE CAR"
Maserati guy said "thanks"
Pedestrian "NO, not you, the old one"
Me "hahahhaahah" And big smile.
Yeah, the old guys are getting older, and if they don't have anyone in the family who will keep the cars, they may get passed on to
"car family" for a fair price, but there will be kids out there thinking daddy's old car is worth $100k, when maybe its not... they'll get their surprise
come auction time.
Who cares? Cars ain't for investing. They are for driving!
I have been asked by my kid, "Dad, what's it worth when you die?" You'd be lucky to 10-12K for it. "Really?, I see some 58's 10x more than that." It's not an Impala Ragtop.
This was inevitable !! The Guys that will feel the pinch are the ones that have way too much invested in their cars.
like those chequebook hotrods?
Like the ones who spend $50-75,000 to pay someone to fix up a car that may be worth $30-50,000 at the time ... could take a real beating ...
The average Joe who picks up a car he enjoys for $5-10,000 to fix up ... that may be worth $10-20,000 at the time should be in pretty good shape ...
Especially when you consider how much depreciation you experience when you drive a new car off the lot ... and then what it would be worth after driving it for 5-10 years ...
Being able to 'break even' ... or even a small loss due to market conditions doesn't sound too bad after you've had years of enjoyment driving the car you like ...
Seems like a lot of to-days generation of rodders have figured that out.. THE RAT-ROD WAS BORN....It seems like a no brainer that times are changing.. It just does not make make economic sense to a lot of the younger guys to have a fortune tied up in bling,fancy paint, Sunday drivers and riddler cars.. that aways need storage, covers, trailers protection from the sun, farting, kids and feather dusting at sit and parks for those who get in free while we pay to show our cars..One nice thing about a rat-rod is when yah gotta modify it or want to ..you don't have have to worry about the paint..a rattle can of rust is a great touch up clean the bugs off the windhield and drive it like the cops are after you....and it's true you can't take it with you so you may as build it for fun and drive the crap out of it..that way it has experience as well as value when that generations stuff gets old..I think beaters and rat -rods are fitting for the times and a hell of a lot of fun and Mothers is not getting all your money and you never need to carry a shami...
