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Investment idea


drbmission

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I am new to the club, and would appreciate any help someone could give. I grew up around mechanics and am somewhat familiar with american cars back through the 60's. I have done mild restorations so am familiar with mechanicals. I am looking for an investment car, possible value in the $100K to $150K range. With the economy like it is, I would rather my retirement be in an antique auto than the stock market. I just am not sure what would be the most likely to hold / increase it's value over the next 10-15 years. I had looked at '30s model Packards but? Also, how do you make sure you are getting a good deal?

Thanks for your help.

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If you are truly serious about sinking retirement money into an antique car you might should think twice. Even with the poor economy my retriement savings are growing at a much faster rate than most antique cars are increasing in value.

But....if you really want to do this, enlist the help of a professional antique car appraiser that knows the cars you are looking at very well.

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I'm not qualified to answer your question.... but

If you are simply buying an antique car as an investment, I would not buy it. What I would do, is buy whatever car you like that you can afford. As long as you take good care of it, it will probably be a good investment. They are like Real Estate... They are not making them anymore.

How do you make sure you are getting a good deal? Easy, just like any other purchase. Research the market. Read as much as you can, view auction results even if they are not real world numbers, watch Ebay auctions, study Hemmings Motor News, watch the buy/sell forum on this site, study old cars price guides.... etc. The more you study, the better a feel for the market you will develop. Then, if you want to buy something, have it appraised by and IVAN appraiser before you purchase it and you will be sure you are not being taken.

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Ahhh...if we could only predict which cars would be a good investment. We would all be rich. In my opinion (I know...everybody has one), buy a car that excites YOU to own and/or drive. That way, if you get "stuck" with it, you will still enjoy it. You can never tell what will go for a higher price next year or in ten years. Whenever your plan is to buy low and later sell high, Murphy's law has a way of creeping in. I have been pretty lucky in my own wheeling and dealing simply because I have studied these early cars since my childhood and I can spot them behind a fence, under a tarp and through my rearview mirror all at once. That actually happened once. Turned out to be a 1930 Chrysler 66 roadster. Anyway, back to the subject...unless you know that your "investment" is practically going to fall into your lap and you also know that it is worth waaaaay more than when you purchase, DON'T DO IT!

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Guest oldmobile1

For S---'s and giggles, try buying some cheap stuff you like, and roll them over at a profit. I started out with a $500.00 dollar car, and have rolled that into about a $15,000.00 to $20,000.00 dollar car. Took a couple of years, and about 6 cars, but has been fun. I look for stuff on the cheap, that will sell well in my area. If you hit the swap meets, and cruise in's, and B.S. a lot you get a feel for the market. Make a game of it and don't go over your head so you won't be hurt in the wallet. There are a lot of nice cars that need a good detail and finishing touches to bring them to a market level. Now is a great time to buy, people need money, or don't have room to store some of their projects. Great rule of thumb, buy the best you can afford, that needs the least amount of work. If your a car guy HAVE FUN! Remember, you never get back your hours of work. So make sure you enjoy doing it. Doug

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Want a good investment, buy an appartment house in a good area that will draw good tenants, You will get some money out of it every month and now is a great time to buy. You may find on that is in forclosure and get a very good deal. Use that money to dabble in cars for fun. smile.gif Dandy Dave!

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Contrary to what I tell my wife about our cars, buying a car as an investment is not a good idea.

1. They require lots of care and feeding (maintenance & insurance & storage)

2. They are not liquid. They require effort to sell.

3. They are hard to value. I don't agree with the notion that a qualified appraiser can value a car correctly. There are too many varieties and subtleties to value. A single person can't know every car.

4. They are subject to the same market dynamics of investments that don't have the downside of 1-3. Sometimes the values go up and sometimes they go down.

The stock market is off 35%, the car market is still at a high in most cases. Wouldn't it make more sense to move your money to the place that's already gotten hit?

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I completely agree with others that cars are a bad investment.

At the same time, there's an interesting question here: what cars are undervalued relative to the classic car market as a whole? I would suggest a few possibilities:

1) Early VW beetles. They're still very cheap, and very fun to drive and easy to maintain. I expect they'll become more valuable.

2) Among 1930s Packards, the "standard eight" models. These are the "cheapest" senior cars, and I think they are a bit undervalued relative to the super eights, twelves, and 120s.

3) Cadillac V16s. Sure, they're in the $100-$300k range, but that's actually pretty reasonable relative to some of the other "super cars" of the 1930s against which they might be compared.

4) Volvo p1800s. Still very cheap, but they're pretty cool, and I suspect in another 10 years they'll be worth a lot more.

5) 1953-55 Sunbeam Alpine. It's a $35k car that looks like a $75k car; it will probably appreciate well in the next decade or so.

Just some food for thought.....

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Guest Bluesky636

When I was in college, one of my dorm mates wanted to buy two new 1975 Ford Granadas. One to drive and one to keep as an investment. I think he used to work for AIG. laugh.gif

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Guest simplyconnected

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: drbmission</div><div class="ubbcode-body">I am new to the club, and would appreciate any help someone could give.</div></div> Welcome to the club, drbmission. All the members here come to the table with many years of experience and a WIDE variety of cars; a free resource of giving people who love their cars.

Most EVERYONE here says the same thing, that buying cars is a bad investment, but notice they all have many cars. They didn't all run out and buy '30's Packards or '57 Chevy's.

These guys are passionate about their cars for a variety of reasons, but most of them are very personal. There is a huge worry that some classics will fall into un-appreciative ownership (sometimes through inheritance), and those cars will soon see the crusher.

Owning a classic is almost like having the family pet you always wanted. They usually cost lots of money, and if you ever lose it, you will mourn forever. So, this isn't an investment club. It's a social club of classic restorers who love their cars. Everyone here freely and gladly helps each other restore their dream.

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I've often said that if you want to buy an old car as an investment, it's probably cheaper to drive down the road throwing $20 bills out the window.

For the kind of money you're talking, you can buy a really spectacular car, but I would only expect it to hold its value, not appreciate in a way that a good retirement plan or professionally-managed investment portfolio might, even considering today's market. In fact, I would argue that now is exactly the right time to invest in blue-chip stocks: you get more bang for your buck and the market won't stay crappy forever if you can afford to hold your stocks for a few more years.

High-end cars might be a somewhat safe place to simply park some money, but don't expect it to fund your retirement. Remember that owning a stock costs you nothing. Owning a car includes storage, insurance, maintenance and a bunch of other things--it isn't static. In addition, cars are <span style="font-weight: bold">A LOT</span> less liquid. If you need to get the cash out of it quickly, good luck getting full value.

Despite what a lot of people think, these cars don't really appreciate all that much. $150K Packards have been around that number for a long time. Too bad you missed the Hemi madness, which was akin to the Internet boom of the mid-90s--a big flash that quickly deflated when people realized, "I paid <span style="font-style: italic">what</span> for <span style="font-style: italic">what?!?"</span>

What I call an "investment grade" car would be something with a proven long-term track record of value. Mercedes 300SL gullwings, for example, could be considered a blue-chip investment grade car--they've been worth about what they're worth now for decades considering inflation. But (and this is a very big but), they must be no-stories #1 flawless cars. Anything other than a no-questions-asked car with a known history won't command top dollar and will have a smaller pool of like-minded people willing to buy it. You can't drive a #1 car and its storage requirements are demanding--climate controlled with regular maintenance. Even just sitting, it's unlikely that it will remain a #1 car without extreme care. The difference between a #2 car (what most folks would call a perfect car) and a #1 car is profound and profoundly expensive.

If you really love old cars, buy one that will bring you pleasure while you own it and consider any appreciation a gift. But if you aren't passionate, it'll only be a headache and a disappointing investment when it comes time to sell.

Buy stocks and have a pro manage them. You'll make more in two years than you would in a decade of antique car ownership. Pick up a copy of "Sports Car Market" magazine and have a look at what they say about these cars. That magazine is only about studying car values and evaluating what cars might be considered "investments." And it's entertaining as hell to read, too.

Just my (market-corrected) $0.02.

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