Could Stock Market Woes Cause Classic Car Prices to Go Up?

[1935Packard]

Here's an interesting article suggesting that the answer may be yes.

It doesn't make sense to me over the long term: Eventually less money around to play with means less money for cars, and less money for cars means less demand and lower prices. But it's food for thought.

[Matt Harwood]

I think what the article is saying is that investors are moving their money from "vaporware" (i.e. stocks with abstract values that fluctuate by the minute) to actual assets such as gold, and yes, cars. I don't think all old car values are going to go up, but blue-chip investment-grade cars like #1 condition Ferraris, Mercedes 300SL Gullwings, the high-end European pre-war cars, etc., Duesenbergs and other Classics, are definitely going to see a spike. You can count on those cars to hold their value, and possibly appreciate because the guys operating in that market have the cash to buy the cars when they want them. I doubt many '57 Chevies and '38 Fords are going to spike up because of this phenomenon.

If nothing else, it is someplace to at least park your money where it won't disappear overnight.

If it continues for long, however, we could see a bubble like we saw in the late-'80s where people were paying crazy money for Ferraris (and most old cars got pulled up with them). When that bubble burst, a lot of guys realized they paid 2 or 3 times as much as their car was worth and were left holding the bag.

[Wowabunga]

Investment tip.... invest in good friends and neighbors for those really tough economic/social times.

In other news... Geo Metros and their 42mpg average have trippled in price this summer. Cars selling for $600 last year are now bringing $2000+

[joe_padavano]

Haven't we learned from the 80s and again in the late 90s that most collector cars are not good investments?

[rocketraider]

In a word, no. Same as nobody learned anything from the 1920s, which have turned out to be a parallel universe for today.

I hope I can ride this thing out and get my retirement back in shape before I actually retire in about ten years, though I have long said I'll probably be as poor when I retire as I was when I started working. I came out of a tobacco field, so that should tell you I was po' folks.

One constant is that markets will always correct themselves, either up or down. We are seeing a hard correction.

[Guest leadsled1953]

if you are thinking that old cars are where to put your money you are going to be in the same boat as all those HGTV watchers. you know the ones who kept pulling all the value out of their homes and now ,well you know the story.we are seeing what the advice of so called experts has lead to.me i have an old car because i love old cars.if it goes up in value i dont care ,if it drops to scrap value i dont care.the price of old cars is going to drop as people unload the toys they refinanced the house to get.

[Guest Plymouthy]

I think the economy will come back around after the elections..just don't think it will be immediate...will this affect old car prices..already has..fewer cars are changing hands and those that are are going a bit less than maybe this time last year. Other sections of the industry hit hard is swap meets with fewer vendors showing up especially at events further from home base. Fewer spectators also..and with the gate fees going up, space rental and especially the cost the the food vendors..they are about to price themselves out of a future show. As it has been said, the cost of living is going up and the chance of living is going down...

[Bhigdog]

If you are in this for the money you are in it for all the wrong reasons. I have a friend who's dumped a huge amount of money into MoPar Hemi cars. He's trying to unload them now. He's a very unhappy person........Bob

[keiser31]

He should not be too unhappy since a Hemi Cuda just sold for 2.2 million. And YES!!!! It should be a HOBBY not a JOB!

[Richard Lichtfel]

Usually when the stock market goes down the car market remains stable or goes up a little. But if the economy collapses everything will go down in value. As long as the dollar keeps loosing its value and the Euro goes up you will see more of our collector cars going overseas.

One thing we learn from history is that we don't learn a d----thing from history.

[Bhigdog]

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Hemi Cuda just sold for 2.2 million </div></div>

That was almost 2 years ago at the height of the Hemi frenzy, and was one of 11 convertables made that year.

My friend turned down $135,000 on one of his cars at auction last year. This year it went up to $103,000. He had it at Hershey and couldn't get anyone to even ask about it. He has over $150,000 in it..........Bob

[keiser31]

No.....that Cuda sold last month for 2.2 million. Saw it myself.

[Bhigdog]

My mistake then. One sold at BJ for the same amount in Jan 07. Well my good luck to the new owner. I hope he didn't buy it for an investment..........Bob

[Guest leadsled1953]

it will be interesting to watch the fire sales at the upcoming BJ auctions.

[Durant Mike]

I think these ridiculous car prices are going to have to do some adjusting like the current economy is doing. Over $100,000.00 for a Mustang or Cuda, crazy! It's out of control like everything else and it's going to have to self adjust. I think as time goes on your going to see many more cars not meeting the reserve price and prices will have to drop. If it doesn't the hobby is doomed, because the average person will not be able to afford to restore or buy one. Some people just like to impress people on how much they have spent on their car. One guy I know can and will tell you how much each part cost him to restore. $250 for this bolt, so much for this part etc. I think it's a bragging thing and many of these people who purchase these cars at auction just want to boast to their country club friends how much they have paid for this car. It's ashame and aggravating to watch

[Dandy Dave]

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">$250 for this bolt, </div></div>

Send him over here, I've got buckets full of bolts and he can have all the $250 dollar ones he wants. He can even hand pick the ones he wants and take the rusty ones for half price.

Dandy Dave!

[GaryC]

I now spend my time working on my 1936 dodge, while my son worked on his 77 fire bird. It is not about money but well spent time. My son thinks (It is not miles per gallon but smiles per mile)

[Wowabunga]

We all love our cars as much as the next guy or gal, as we all deal with repairs, leaks, squeaks and upkeep... for it's only the decimal point that changes.

My 65 AMC Wagon costs me $100 back in 1996. Oh how I love my wagon.

[Dynaflash8]

We can only hope it affects prices. I personally think the prices at these auctions is simply a case of money laundering, probably from drug money. Nobody has that much money to simply throw away, or, if they do, I agree with Obama, let's raise their taxes. The country needs it, and true old car collectors can only benefit and maybe afford a car they want.

[alsancle]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Dynaflash8</div><div class="ubbcode-body">We can only hope it affects prices. I personally think the prices at these auctions is simply a case of money laundering, probably from drug money. Nobody has that much money to simply throw away, or, if they do, I agree with Obama, let's raise their taxes. The country needs it, and true old car collectors can only benefit and maybe afford a car they want. </div></div>

Do you really feel that way? Wouldn't it be better to support the right of any of us to waste our money, little or large any way we want? You could make the case that many of us blowing 10k on some beater is a worse investment that some of the million dollar auction purchases. Who gets to decide what was wise or unwise or who the "true" collector is?

[1937hd45]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Dynaflash8</div><div class="ubbcode-body">We can only hope it affects prices. I personally think the prices at these auctions is simply a case of money laundering, probably from drug money. Nobody has that much money to simply throw away, or, if they do, I agree with Obama, let's raise their taxes. The country needs it, and true old car collectors can only benefit and maybe afford a car they want. </div></div>

Should be fun to watch the beatdown the Pimp My Ride and Unique Whips customers give you.

[Guest 1926pack]

I agree with you and disagree with the article. While there may be a temporary bump up in prices, that will only be for a short time, fueled by ebay dreamers, R&M shills and the like. After that, I think prices are going to tank.

Why? Well, first of all, not a lot of people are going to have that much disposable income to play with. I don't know how its affecting others but here in NYC its a bloodbath. In other parts of the country, add crashing real estate prices. Many people are under water with their mortgages. Add to that the still high fuel prices, high food prices, crashing 401k's, etc, it ain't pretty. And it will only get worse before it gets better. Wait till all the layoffs start.

Second, those few who were smart enough to avoid the bloodbath will be smart enough to not fall for this. They know you don't but a classic car as an investment and in any event, they know the prices will be coming down soon. So why not wait a few months? And not many people buy classic cars in winter.

So, I think there will be a short increase in prices, but not many buyers. Some but not many. Then prices on classic cars will begin to tank.

I think a more interesting question will be how low do you think prices for classic cars will go? My bet? The only time you'll see 6 figures for a Packard is if its a mint, original V 12 boat tail once owned by FDR himself. With the documents to prove it.