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Newspaper Article says Cars a Good Investment .


Mark Gregory

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Seems plausible that some cars of the 90s will be seeing an uptick in value over the next few years.  Of course, when a car is going from being worth 4K to 5K, and you have to keep it on the road, insured, get it repaired, and park it somewhere, the investment angle seems pretty dubious.

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"Classic car insurance giant Hagerty predicts that 2017 will be the year in which the millennial market will surpass the baby-boomer market.... Check your bank balances and warm up your MasterCard: we’re about to take a look at what we think are the next big bets in the collector car industry."

 

I never put any credence in articles that

claim to predict future popularity or future values.

An automotive journalist may be able to see

what is popular now, or what has been popular,

but it's not realistic to think he can see the future.

 

The journalist probably had an assignment to

come up with an article by the end of the day.

And not knowing much about classic cars--and writing

for readers who know just as little--he decided to let

his guesses fly.  Fun to write, but of little use to read!

 

It's interesting to go back several years and see

how well previous predictions fared, on any subject.

They're often so wrong that the predictions are almost humorous!

 

Edited by John_S_in_Penna (see edit history)
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cars are a horrible investment in general-a passion of love

 

with that said,

 

yes ferrari, porsche mercer, stutz can be very good investments............. they are not your avg layman's purchase though.

 

an extremely rare gold piece is also a good investment..............yawn.

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I have raised my kids telling them that the primary reason an author writes an article is to put groceries on their table. Always think that first then assess the value of the content.

 

I started reading articles and put them down, unfinished, when I found the fool writing didn't agree with me. I thoroughly read articles written by bright people with thoughts similar to mine, sometimes twice.

 

Wonderful article! BTW, PM me if you are interested in the Chevy I plan to sell this year.

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Bernie

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1 hour ago, Restorer32 said:

Coincidentally I just.got off the phone with my sister. She wanted to know if they should trade in their 2001 Cadillac or rent a garage and keep it as an "investment".

 

What did you tell her, and how did she respond?

 

Sure, it might be nice for future hobbyists if her

family wants to keep it for 40 or 50 years--

but as an investment, it's not a good idea.

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I think there is an upward swing in the cost of collector cars when ever the Stock Market jumps up like it has recently. In most places you are looking at a good non taxable interest, and if you need to cash out through the sale of the car the buyer may see a big jump in the Local Tax when he goes for Title and Registration, plus cost of Insurance. I tell my Wife that Collector Car purchases make more interest than our money sitting in a Bank making 1.5% , which is a fact, and you can't see your money, or sit in it and drive it around if it's in a Bank Vault some where.

 

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I find it difficult to believe any vehicle from this period is a good investment, due to the amount of proprietory electronic components that will all eventually fail and not be reproduced.

 

On the other hand, paintings and vases don't have to run...............

 

Jon.

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There is only one more or less sure way to profit on cars. Do as my Dad did. Buy them, shove them in the barn and don't spend a dime on them. Wait 20-30 years then pull them out and sell them. In my barn is a '55 Jag I literally shoved in there in 1969. I suspect I could make a decent profit should I decide to sell.

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Apparently you don't know Jags. Even though it was only 13 years old when I bought it it was a total rust bucket but mechanically in good shape. First car I ever really worked on. I put about 2 gallons of bondo in it, rattle can painted it, put a set of recaps on it (Dad was in the tire biz) and drove it as my daily driver for a year of college. First and only car I ever drove over 100 mph. I chickened out at 117 and still had not engaged overdrive.  In 1969 I shoved it in the barn and it has not been touched since. Someday I'm gonna fix her up.

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2 hours ago, Restorer32 said:

Someday I'm gonna fix her up.

My worry is whether or not I'll make it to "someday".  "Someday" seemed easy when I was in my thirties, now in my sixties, not sure it's easy at all.....

 

I've never bought a car as an investment, always bought because I fell in love (which I do way too easily, a friend tells me)......sure, some values have gone up, but if that's the reason you buy a car or cars, then you're not in the hobby...

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5 hours ago, Restorer32 said:

There is only one more or less sure way to profit on cars. Do as my Dad did. Buy them, shove them in the barn and don't spend a dime on them. Wait 20-30 years then pull them out and sell them. In my barn is a '55 Jag I literally shoved in there in 1969. I suspect I could make a decent profit should I decide to sell.

 

  Do you think it would make as much/more than the 1969 purchase price invested would have made?  Wonder.

 

  Ben

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 I think cars can be good investments, one of the few investments that a person can put in motion. Very few things can take you to a different place. Classic/collector cars can not only do that, but they can also make a statement about who you are. Always buy/invest in what you like, and buy quality. If you have the ability to do the work yourself, a person can look to project cars running or not. Cost involved in restoration/builds adds up fast. A person must know what they are looking at, and where a cars value will fall in the market place. Time spent working on your classic cars, is much better than time spent watching TV. I will always have classic cars. 

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MY Grandfather told me he had made a lot of investments in his life that didn't pay off.

 

One, he had second thoughts about. $2 for a marriage license and $10,000 worth of BS thrown in for nothing.

 

He was a step-grandfather so we had a much more candid relationship.

 

Bernie

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The article says 2017 is the year " the millennial market will surpass the baby-boomer market". I think they're at least a year late. I went to the Auburn fall auction last year and saw this first hand. If you haven't been to Auburn, they run two auction lanes side-by-side. I was waiting for a nice '39 Buick Special Phaeton to cross the block. When bidding started on the Buick, a Supra like the one in the article was on the other block. The Buick stalled around $36K while the Supra sold for  $68K.

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We had the party yesterday, but the Mercury fixated Nephew wasn't there. The rest were. All have at least one collector car, nothing older than the 1980's. I asked my 38 year old Nephew how many cars he has now. Five ranging from a diesel Daihatsu to a Fiero, if you don't count the Prius daily driver. No hobby lost there, just a shift, like me not caring for Model T's and A's.

 

Supra's are good. If a Nephew gets one the old Uncle should counter with a stodgy Bentley Turbo.

Bernie

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