What is it, with the outrageous price of classic cars?

[MarkV]

At auctions, car shows, dealer lots, classifieds, what is it with classic car prices being astronomical?

[Bhigdog]

Supply and demand in a free market........Bob

[joe_padavano]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: 1948Lincoln</div><div class="ubbcode-body">At auctions, car shows, dealer lots, classifieds, what is it with classic car prices being astronomical? </div></div>

Don't confuse asking price with selling price. While B-J and their brethren tend to pull stupid money, the reality is that I rarely see cars sell for these astronomical prices. For example, ebay has a "completed auctions" search function. Use it with your favorite collector car and judge for yourself. My passion is Olds 442s. Based on my totally non-scientific sampling of these completed auctions, I'd say that well over 95% of the high dollar cars don't sell. I see the same thing on Craigslist, where a local dealer has been advertising a 68 442 convertible for months. One of the "features" of the car is that it was supposedly sold at B-J last year. My reaction to that is that the only thing that proves is that the previous owner overpaid.

[Guest Johnpaul Ragusa]

Not to state the obvious but a live auction enviornment is as much about winning as it is what your winning. Ego makes you do some strange things.

[Guest BJM]

Wes,

A long debated subject for sure but part of the problem as I have stated before is that we don't have a real good way of knowing what cars actually sell for - that are offered by "the old car dealers" such as Volo, and those that advertise in Hemmings and other trade magazines. They can ask $75,000 for a 1970 Chevelle 396SS but I don't know too many folks that are paying that.

Those that are - are baby boomers that just want the car NOW, before the show circuit season, so they can unload the lawn chairs and cooler and swap stories with other baby boomers that bought completed cars.

That's not necessarily the AACA crowd.

Those types of buyers are driving prices up for select high demand vehicles and a rising tide lifts all boats.

But to Joe's point, most ebay auctions end without sales, and that's fine for ebay they still get a listing fee. The owners rolls the dice, say what the heck I might as well try - and if they get ONE buyer to pay their inflated price, they win the lottery. Never mind they might have only paid 15% of that price 7 years ago in a hand shake deal with a buddy.

And the organizations that profit from this marketing are sure as heck not going to do a survey that shows that 90% of cars don't sell at their offering price, that would punch a hole in their balloon.

I continue to be amazed at what the so-called old car dealers ask for their muscle cars, fifties cruisers, and pony cars. It's like they take the price guide books #1 price and double it. I would like to ask anyone on this forum if they purchased their car (or one of their cars) from one of these high priced dealers. Anybody do that? What percentage of asking price was the final price? (75%) (80%) ?? And why did you do it that way. I'm talking Volo, Duffy's etc. I mean if people are buying muscle cars with no particular provenance for $35,000 or more I'd like to know, and more power to the dealers, but I think it's a crazy, head shaking environment.

[Twitch]

I thought we covered every aspect of this and related subjects pretty well fairly recently.

To bottom line it we agreed that investors manipulating the markets and money drunk auction participants have driven up prices in general. Despite Joes Doak's car being a piece of crap- he sees a #1 example and figures his is worth way more too. In reality it is to some extent because the prime examples of influence are- auctions, appraisers, insurance companies, classified listings and regional trends.

[Guest 1926pack]

I also think part of the answer is that we were (note the past tense) in a bubble for a while. Same thing happened a few years back with Ferrari. But I also thing that right now you're seeing that bubble deflate. Slowly at first but it is deflating. That's why someone can't shill, er sell, a car this year for the same price he or she paid at BJ last year.

Part of it is the bursting of the real estate bubble. Part of it is the rest of the mess on Wall Street. All means less cashola. And part of it is that people are just getting smarter about bubbles and don't buy in at the high end.

Bottom line lesson here, one that has been repeated again and again, is that if you're going to but an antique or classic car, do it because you like the car. Don't do it as an investment.

[joe_padavano]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: BJM</div><div class="ubbcode-body">But to Joe's point, most ebay auctions end without sales, and that's fine for ebay they still get a listing fee. The owners rolls the dice, say what the heck I might as well try - and if they get ONE buyer to pay their inflated price, they win the lottery. Never mind they might have only paid 15% of that price 7 years ago in a hand shake deal with a buddy. </div></div>

Of course, the other option is that the wife has mandated that the car must go, so set an unrealistically high asking price, and when the car doesn't sell, well, "Gee, honey, I TRIED to sell it..."

[Guest BJM]

Oh, I never thought of that one. Good one.

[Guest 1926pack]

Hmm, this could actually work...

[tbonetraveler]

Your right plus Barrett-Jackson hasn't helped. Everybody thinks they can get more than the car is worth. Negotiate

[1935Packard]

I agree with esp: the falling dollar has led to dramatically increased prices of the high end cars with appeal to non-US buyers.

Of course, no matter what happens, we would all find room to complain. If prices are up, it's unfair that we can't buy what we want. If prices are down, it's unfair that no one appreciates our cars.