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Classic cars are horrible investments. Some do appreciate, but very few do. They are usually extremely, extremely rare optioned models of very popular cars that are in pristine, mint, like new shape.
You should be able to buy smart and break even or come close. Don't expect to be turning a profit.
Thanks for all those who offered intelligent commentary here. I'm OK with breaking even on this. Of course the other big thing to consider is, how easy / cheap versus difficult / expensive is it to obtain parts for these older cars? I would imagine it's easier than it used to be with ebay and the like, but some of the parts are still probably difficult to find.
Older cars are easy to work on for the most part. Make sure you find a reliable mechanic who's been in business 30+ years, a lot of shops today won't touch a carburetor or a distributor ignition system.
Most parts stores will have mechanical parts on the shelf or available overnight; cosmetic parts can be a little harder to come by, not so much for a Camaro or Mustang but heaven help you if you fall in love with an Dodge Aspen.
The advantage of going for a '70s-era vehicle for a "fun car" as opposed to say a 10-year-old Mustang or Sebring convertible is that even if the value of the car doesn't inflate like earlier cars have, you will at least be buying something that has already bottomed out and will probably never be worth any less as opposed to the newer car that is still depreciating.
Classic cars are NOT a good investment. Often times you do not get back out of them what you put into them. Just because you turned on Barrett Jackson and saw one crossing the auction block for six figures doesn't mean they're a good form of investment.
In fact classic cars should be restored and enjoyed by car enthusiasts without a regards to "How much can I flip this for" mindset. But sadly it's clowns with dollar signs in their eyes that drive up the price of them to where the real car enthusiasts on an average income, who just want something cool to drive and wrench on, can't even own one.
If you want to get into investments, look into buying houses. They're a far better investment than a car.
So I have been thinking about getting a "classic" car at some point. Nothing too expensive or old, but maybe something from the 1970's, Dodge Dart, Chevy Nova, Ford Mustang, etc. Is this a good move from an investment perspective. I should also note that I don't have a lot of automotive knowledge. I"m thinking of buying something in "good" shape, driving it occasionally for some fun, and selling it in 10 years, hopefully for some profit. Good idea?
You need to go 'picking'..... (and you also need a lot of automotive expertise)
When I found the '70 Superbird for $3000..... when I sold it, gold would have been a poor investment, relatively speaking.
Of the cars you listed, certain Dodge Darts (I could go for the right one in a second), certain Nova's.... maybe
Unfortunately, most people who now have the classics know exactly what they are worth. (And the definition of 'classic' is poorly defined, except to the right buyer). The economy is not exactly booming.
Not having a lot of automotive knowledge puts you at a serious disadvantage. Buying a car and sticking it in a garage may have worked a few decades ago, but I would say now, forget it.
Now if you liked to restore certain cars (one of my engineers did an early Packard), you can clean up, but the key words are 'like to restore', and money isn't the end game; it is a labor of love.
Thanks for all those who offered intelligent commentary here. I'm OK with breaking even on this. Of course the other big thing to consider is, how easy / cheap versus difficult / expensive is it to obtain parts for these older cars? I would imagine it's easier than it used to be with ebay and the like, but some of the parts are still probably difficult to find.
It is entirely related to the car model and year. You can build a complete Model A without having virtually one original part (though the car looks exactly the same), to something a little tougher, like a B&C front grille (that will run a few bucks), to a model that the production numbers were low enough that you will pay a fortune.
NOS (New-Old-Stock) supplies from the factory are dwindling or exhausted from the factory, to the point that there are aftermarket companies making exact replicas. You need to do a lot of homework. Also take a look at the DIG (Domestic Interchange Guide), so you can find parts from other models that were used on the vehicle you have.
Example: I needed left and right rear quarters for a '67 Chevelle, went to the factory NOS, and they only had one side. Either fabricate, or find one in a junkyard (the latter isn't going to happen).....
So, just like investing in stocks, you need to do your homework.
Personally, I would never do it as an investment (but I do it for fun).
Three years ago, in an even trade (no money involved) I traded my 2006 Mazda 3 hatchback for a 1966 fully restored Thunderbird Town Landau.
At the time the Mazda was valued at $14.000, so obviously that was the value the seller set for the Thunderbird.
A month later, I had the Tbird professionally appraised for insurance purposes,and the car was appraised at $22.000, and insured with an agreed value the same as the appraisal.
The agreed value set by the insurance company has risen the past two years, and now stands at $24,000
This is one of those vehicles that comes along once in a blue moon, and when being sold, is getting top dollar.
Were I to consider selling it (which is highly unlikely), My price would be in the high thirties to mid forties.
I have been offered $32,000 but that price is unrealistic.
Some classics are an investment, but that was not my intention when I got the car.
I just wanted a piece of art that I could drive, and enjoy every minute while doing so.
Bob.
Three years ago, in an even trade (no money involved) I traded my 2006 Mazda 3 hatchback for a 1966 fully restored Thunderbird Town Landau.
At the time the Mazda was valued at $14.000, so obviously that was the value the seller set for the Thunderbird.
A month later, I had the Tbird professionally appraised for insurance purposes,and the car was appraised at $22.000, and insured with an agreed value the same as the appraisal.
The agreed value set by the insurance company has risen the past two years, and now stands at $24,000
This is one of those vehicles that comes along once in a blue moon, and when being sold, is getting top dollar.
Were I to consider selling it (which is highly unlikely), My price would be in the high thirties to mid forties.
I have been offered $32,000 but that price is unrealistic.
Some classics are an investment, but that was not my intention when I got the car.
I just wanted a piece of art that I could drive, and enjoy every minute while doing so.
Bob.
For the sake of this OP, one should point out that on any given day, market valuation is what a willing buyer and a willing seller will agree to as a deal for cash or equivalent valuation.
IOW, on the day CALGUY traded his Mazda Hatchback, the trade dollars ... in this case, assumed to be $14,000 ... are nebulous, fictious numbers. The two parties might just as well have said my Mazda is worth $20,000 and the T-Bird is worth $20,000, or pick any number you car to assign, low or high. It's a vehicle for vehicle swap without any cash involved and has no other meaning.
As far as the reported deal goes, don't count on finding too many deals where the seller is willing to part with a vehicle at $14,000 valuation that appraises immediately at $22,000. That's over a 50% increase in FMV for the T-Bird which the seller walked away from. Look at it from the perspective that they could have advertised it in appropriate markets at $22,000 asked and settled for an offer of $20,000 and still come away with a lot more cash on that day. Or consider that the appraiser went very high. True market price discovery really only happens when cash dollars change hands, such as at an auction or when a car sells off a lot.
FWIW, I've seen two Condition 1, one owner for one of them, 1966 T-Birds of the model described asked recently at $16,000 and not getting any buyers in today's marketplace.
The more miles that CALGUY puts on this car for his personal driving pleasure, the faster it drops to a Condition 2 car, worth a lot less money. Get a few road dings on it and rapidly drops to Condition 2-3 level, trading for far far far less money than mid-high $20's.
That's the reality of the classic/collectable marketplace. If you want show car Condition 1 dough for your car, it will be a garage queen showpiece, not a driver.
Like Reggie Jackson once said, "Don't ever buy a car you don't love!" If you are doing it for an investment you will never recoup costs such as insurance, storage, restoration etc. Auctions show cars selling for 50K with 100K in receipts! Everyone thinks of the 200K Corvette that sold new for 5K but in reality if you add up all the costs of owning/driving the car you will be disappointed with the net amount.
I do think low production cars will always have an appreciation built in (Ford GT's, BMW Z8, MB SLR etc). If the car was cool, fast or generally desirable when new then it should be something to appreciate as it gets older.
911 Speedster market has gotten stupid lately (only made in 1989). Car was a turbo body car with a chopped roof and a 214 HP engine. Not Porsche's best fit/finish attempt on the convertible top (1/4 gap between top of window and the convertible top!). Sellers are routinely asking 100K for a not yet 25 yr old car that really wasn't that special. I like them, even made and offer on one years ago (7K mile car, I offered 45K) but they were stuck on 50.....Even if I could double my buy price, not sure it would be a money maker when you factor in the opportunity costs (what you could have done with that 45K for 10+ years).
Three years ago, in an even trade (no money involved) I traded my 2006 Mazda 3 hatchback for a 1966 fully restored Thunderbird Town Landau.
At the time the Mazda was valued at $14.000, so obviously that was the value the seller set for the Thunderbird.
A month later, I had the Tbird professionally appraised for insurance purposes,and the car was appraised at $22.000, and insured with an agreed value the same as the appraisal.
The agreed value set by the insurance company has risen the past two years, and now stands at $24,000
This is one of those vehicles that comes along once in a blue moon, and when being sold, is getting top dollar.
Were I to consider selling it (which is highly unlikely), My price would be in the high thirties to mid forties.
I have been offered $32,000 but that price is unrealistic.
Some classics are an investment, but that was not my intention when I got the car.
I just wanted a piece of art that I could drive, and enjoy every minute while doing so.
Bob.
Insurance policies and appraisals don't set the sale price of a car but the market does. Nice looking car though!
The 68 Shelby has the same tail lights as the T-Birds if I recall correctly....
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