economic downturn & collector car values

[nevets]

I often hear that "luxury items" are recession proof, but maybe this one goes deeper? Any evidence as yet that the current economic downturn is having an adverse effect on the value of collector cars?

 

[tomshobby]

Hope it does!! A downturn in values would mean it is time to buy, they will come back up when it is over. I have been working on a deal for a TR3 for a couple years and that would help.

Of course a guy could put his money in the market.

 

[Steve_S]

Depends on your definition of a luxury item. The typical classic British car isn't a highly sought-after possession by those who aren't heavily affected by recession. In other words, they aren't valuable enough for the rich guys and us "poor guys" can't continue to buy these low-dollar luxuries like we could a couple years ago. A Ferrari GTO isn't going to lose much value in the current economy but an MGB sure will!

 

[Tinster]

I have to believe the value of LCBs must fall as the economy
implodes more every day. LBCs are "working man" toys
and for "working class" folks LBCs upkeep and constant
repair costs become quite a luxury.

Joe the plumber is worried about keeping his family fed
and a roof over his head. Purchasing LBCs to throw barrels of
cash into is no longer in his budget or thoughts.

Example: I can no longer afford any more restoration of
my TR6. If I cannot fix it on the cheap, it stays parked
until the markets make some kind of recovery. Paying our
monthly bills, with neither of us working, becomes our
prime directive. The TR6 is WAY down the priority list for now.

Sure there will be guys with cash who buy LCBs, as
their value tumbles. Not as their value increases.
I'd say it's not a real good time to be selling a LBC.

I'll betch Tony buys 10 more in the next 18 months-
with the prices dropping!!

just my 2 cent's worth.

d

 

[sail]

i don't care so much about investment. got my car. paid too much, too little? whatever. got the car i wanted. i have never had a car that was a money maker. have had several that brought joy. but the TR is the best! it's a keeper...

 

[tony barnhill]

I'll betch Tony buys 10 more in the next 18 months-
with the prices dropping!!

Probably - the same with stocks & other financial items (my bank offered me a guaranteed 6.5% over 6 years if I transfer over $100,000 from my 401K to their similar plan!) without any tax liability & the ability to withdraw 10% annually and interest calculated daily.

 

[TR6BILL]

I'll betch Tony buys 10 more in the next 18 months-
with the prices dropping!!

Probably - the same with stocks & other financial items (my bank offered me a guaranteed 6.5% over 6 years if I transfer over $100,000 from my 401K to their similar plan!) without any tax liability & the ability to withdraw 10% annually and interest calculated daily.

Er, yer banker's last name isn't Madoff, perchance???

 

[aeronca65t]

i don't care so much about investment. got my car. paid too much, too little? whatever......

Ditto.

I already have a job. Cars are my hobby.