Collector Car Values Down With Economy?

[Guest VeloMan]

The Wall Street Journal had an article on Nov. 25th concerning dropping collector car values, "A Rough Ride in Collectible Cars". Among other things, the writer (Jonathan Welsh)states that "In recent years, the vintage car market has soared, led by the priciest European models. But now, as the economy worsens to the point where even the wealthiest collectors feel pinched, demand for million-dollar sports cars is starting to skid."

He goes on to say that many sellers want to unload cars for cash and "According to industry tracker CNW Research, long-established classic cars are also suffering. The price of a 1934 Packard Touring is down 17% on average, compared with two years ago. The 1957 Ford Thunderbird is down 15%, and the 1940 Ford DeLuxe Coupe is down 40%."

I would think that, conversely, many potential sellers would hold off if prices are low. Also, I wonder how one can determine a drop of "17%" in a 1934 Packard, as there are so may variables.

Phil

[MarkV]

They are worth only what someone is willing to pay. Where do people get these inflated prices anyway? Also, the 1940's and before cars are going down, because the generation that bought them is dying out and now the baby boomers want the 50's-70's cars.

[modela28]

I will have to disagree with the comment that 1940's and earlier car prices are going down. In some cases, that may be true. However, have you seen the prices for brass cars lately? Even brass Model T's which tend to be the "cheapest" brass cars are up significantly from recent years. Also, Model A prices have risen quite a bit in the last 2-3 years. (And that is just 2 examples). It remains to be seen what impact the current financial situation will have on pre-40's car prices, but based on what I see, they have not all been going down in recent years.

It is true that the older generation that collected pre-1940 vehicles is passing on, however, there is a strong contingent of younger brass car enthusiasts like myself (50 & under) that will continue to keep that part of the hobby alive.

Dan

[bill pritchett]

http://sec.online.wsj.com/article/SB122757588574055233.html is the URL to see the entire article.

[MCHinson]

Whenever you find some of those supposed to be cheap bottom dollar Brass Model T Touring Car let me know. I am 48 years old and am in the market for a Brass Car.

[modela28]

Obviously, when I used the word "cheapest" to describe brass T prices, I was being facetious. There are no cheap brass cars anymore!!

I'm almost 50 and have wanted a brass car for years. My wife and I were able to buy an older restoration 1913 T a little over a year ago. It is great fun! We just completed the HCCA / AACA Reliability Tour in Chattanooga in it last month. In fact, it has been driven about 1,200 miles already this year.

Keep looking and hopefully you'll find one at a reasonable price.

Dan

[rocketraider]

Not so much a drop in value, but a market correction same as everything else we're seeing.

I think it's a good thing. I have gotten tired of people saying, "what's it worth? bet that thing's worth a whole lotta money."

I didn't get into this hobby as an investor and I've really come to disdain those who have. I'm in it because I like old cars. I like tinkering on them and I like driving them.

For that matter I like just about anything old. Can't tell you the last time I bought "new" furniture. I haunt antique auctions and used furniture stores, and get quality American made solid wood name brand furniture at ridiculously low prices. Purchase price and refinish if required is invariably cheaper than "new" offshore made furniture that has no style and is generally made of vinyl-clad chipboard.

A shop downtown has a nice late-50s American of Martinsville Danish Modern bedroom set that I am foaming at the mouth over, but have nowhere to put without getting rid of something else.

So it ain't only cars you have to worry about that with!

[joe_padavano]

Why is this a surprise? Collector car prices soared in the 90s when dot.commers had more money than brains and listened to "experts" who proclaimed cars as a good investment. The dot.com bubble burst and there was a "correction". Same thing is happening now. Anyone who buys a collector car as an investment deserves what they get.

[R Walling]

I think that the only cars that are selling for less than they were bought for are the BJ cars that came with the bragging rights built right into the price.

They never had that kind of value and the ones that we own are solidly priced and are keepers.

Why would someone who really likes his car sell it now unless his other stocks (income) went bad and he needs it to live off of? Those cars are considered "fire sale" prices and do not affect the true price of rest of them.

[TexRiv_63]

I went to the Leake Auction in Dallas last weekend as a spectator, not a high-end affair but they had a lot of nice cars. We sat and watched the bidding for about two hours, saw a lot of muscle cars and tri-five chevys but very few cars met reserve. There were a few rare muscle cars that topped $100,000 but that didn't even come close to what the restorations had cost. I felt that the few cars that did sell were bargains for the buyer but I felt sorry for some of the sellers.

[Guest rocky voss]

Re collector car prices and the bad economy, just got my Barrett

Jackson catalog re Scotsdale auction in january. Only 5 classics listed for auction, 32 Chrysler, two Packards, an Auburn and a Lincoln. Could those with very expensive cars be holding them back for a better economy?

The vast listings are for the most parts 60s-70s muscle cars and vettes and a few T-Birds. Makes me wonder.

ROCKY VOSS

s

[tbirdman]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: rocky voss</div><div class="ubbcode-body">Re collector car prices and the bad economy, just got my Barrett

Jackson catalog re Scotsdale auction in january. Only 5 classics listed for auction, 32 Chrysler, two Packards, an Auburn and a Lincoln. Could those with very expensive cars be holding them back for a better economy?

The vast listings are for the most parts 60s-70s muscle cars and vettes and a few T-Birds. Makes me wonder.

ROCKY VOSS

You won't fnd many 'classics" at BJ so the lackof them doesn't mean anything.

s </div></div>

[Dynaflash8]

No, I don't think that's the reason. The auctioneer just really wants muscle cars. All you have to do is watch the auctions on TV. That said, I do not see any reduction in prices; maybe sales are slow, but they still want the really big bucks for the cars. It'll take a full blown Depression, in my opinion, to change that. :

[Dynaflash8]

If the prices on pre-1950 cars are going down, I don't see it when I see them advertised. In the high-brow auctions they do not sell as well, unless somebody has stuffed a 350 Chevy into them and A/C, that is true. But try to buy one on the open market for a fair price and you'll see they prices are still right up there.

Brass cars stopped around 1916, and there does appear to be new interest in them; although not on the auction block. The auction block remains crammed with Mustangs, Corvettes, Camero's, tri-five Chevies and street rods.

As for restoration, there are no cars that can stand $65 an hour and higher restoration costs and the owner ever come out in the end. The only reason for doing that is if you really love the vehicle and plan to keep it awhile. After that, you have to consider your loss as being better than golf, where you lose the WHOLE investment.

It is still possible to sublet the work to various technicians and craftsmen at a lesser amount if you don't do work yourself and have five or six years to wait for it.

And finally as for us old geezers dying off, let me just say, not yet! At 70 I'm still interested in those late 30s and early 40s cars I was always interested in, and I'm still fooling with them. I never really could have afforded a 1935 Auburn speedster even when they were $2,500 so I don't worry about what I never could do in the first place. It's a little tough paying $25,000 for a '39 Buick that used to cost me $250 though, haha