By Rob Einaudi

Editor-in-Chief

NADA recently published a study showing that collector car values have surged in recent years, increasing in value by an average of 36% between February  2004 and February 2008 (go here for a summary of the study). However, from what I've seen and heard over the past twelve to eighteen months, collector car values have started to fall. The values of the more desirable Mopar muscle cars, for example, have fallen off quite a bit since their market high roughly two years ago. I'll be publishing an interview with Dan Kruse of Dan Kruse Classics next week, and Dan said that he had noticed the same thing in his auctions held around the country. And I'm sure the current mortgage crisis and economic slowdown isn't helping.

Still, I don't necessarily think this is a bad thing. Some of the prices were getting kind of silly, and a lot of the real car enthusiasts were getting priced out by people who all of a sudden started seeing our old cars as "good investments." Now, there is nothing wrong with getting most or even all of your money back when you sell a car, but going into it expecting major appreciation just seems wrong somehow. What do you think?

Comments

GUTIERREZ
Mar 30, 2008 10:53:29 AM

At least I could always buy a crate Camaro. Dam those rich baby boomers.

Chris Allen
Mar 29, 2008 2:23:13 PM

I will have to admit that your kids are unique, much like myself. I can't find any friends that give a care about anything built before 1990. Even then, they don't really care about cars the way it seems like our parents did. Even though I'm young, my perception is that when the classic cars were in production, culture was cars. They represented freedom, and a 16 year old stock boy with a dream could get himself in a brand new muscle car with some work. Now days, that's not the case. A 16 year old stock boy is lucky to get into a 10 year old Civic let alone something fun and powerful. I'm down on our hobby simply because I'm the only one I really know of my age that really seems to care about classic cars anymore. The environment we live in has changed and it makes me sad. I really hope I'm wrong. I'd love to meet some people my age that share my passion for classic cars...and change my opinion. The issue is that most people find classic cars unattainable at the moment, and there's not enough cool parents like yourself that will their cars to their kids. I'll reap the benefits, but I'm just uncertain about where things will go.
.
I'm glad you like my Pacer by the way. The Power Tour was a blast and I've been in contact with Harrel and Anna Beth (builders of your favorite Pacer) since the car was but a dream. That is a pretty neat one, I can see why it's so popular.

retroman
Mar 29, 2008 11:46:59 AM

60s muscle will always be hot, but it's too bad you have to be a millionaire or have senior citizen status to enjoy one. As a 20 year old guy I've always wanted a Shelby Mustang, but the prices commanded me to look elsewhere, namely to the Chrysler produced Shelbys which in turn led me to purchase my Spirit R/T. As a footnote on history to all the guys who think these cars won't appreciate, it's possible they won't, but Hemmings said otherwise(march '06). The GLHs are only 20 years old. In comparison, desired 60s muscle cars were 20 year old rusted out pieces of junk being driven by college kids back in the 80s. I know. My family had 2 '66 Mustangs we drove up into the 90s. It wasn't until the '90s that prices started to escalate. So I expect in another 10 years, the $2000 I paid for the R/T will easily be gotten back out of it. If not, oh well. Either way I will continue to enjoy my ride.

Stewart
Mar 29, 2008 11:38:41 AM

Chris,
I forgot to post that I checked out your Pacer, and see that
you went on Power Tour with my favorite purple Pacer...
Nice work!
Stewart

Stewart
Mar 29, 2008 11:35:24 AM

Well Chris, I have been going to shows since before you were born.
.
My kids, who are almost as old as you are go too.
.
All three of them feel the same way as I do about cars,
and so do their friends.
.
My son's best friends father has two 40's Mercurys...
.
As far as shows and such, I go every week during the season.
.
I guess we'll have to agree to disagree here on some points.
.
.
My personal opinion is that the cars the boomers own will
fall into their kids hands. Not all, but a good amount.
That's where my hobby cars will go. I have already planned it
with my daughter and two boys. Will is made up. Plans are there.
.
.
You're right on the cost keeping younger guys away, BUT, they
will remember their fathers and grandfathers cars, and when
they can afford it, they WILL buy.
.
Just my opinion of course.
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I just don't ever seeing the 60's and 70's muscle ever going away.
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Also, I don't see our hobby ever going away due to oil and gas prices.
.
Automobiles and their impact on our culture is way too strong.
Sure, I may be driving some electric-hybrid-solar powered-hydrogen-vehicle daily in 10 years, but my hobby car will still be in the garage, waiting for the next season, with a full tank of premium ;)
.
Take care Chris.
.
You made some valid points, I just don't agree with your somewhat pessimistic outlook on our hobby.
.
Stewart

Chris
Mar 29, 2008 11:16:12 AM

How many car shows and cruise-nights do you go to?

I've been going to them since before I could walk...I grew up around classic muscle. The car shows now are all older people. I hardly see anyone my age (22) actually appreciating the classics. How are these cars going to be appreciated in the future when kids now barely care?

It seems like it's just the natural way that when you reach the age where you have more disposable income, you fawn after the vehicles you fawned after as a kid. Only later on you can afford them with all the goodies. Perhaps you're right and Evo's and STI's won't be collectable, but what will? 80's cars aren't collectable because hey sucked. OMNI GLHS's....how many did they really make? Certainly not enough to be a popular. Find one in good shape and the price will be through the roof...that's collectable. The only other collectable car that comes to mind from the 80's is the Grand National. good luck finding one of those cheap. My point is, what besides 4th gen F-boys and some mustangs will be collectable from say 1992 to now? Kids drive tuned-up civics and econoboxes. That's the youth culture now. It used the cruising and American Graffiti, but now it's street racing, nos and Fast and the Furious.

Our hobby in general is in jeopardy as the foreign oil issues and government regulations start to clamp down. I'm not sure what will be collectable, I just know that nothing is as unique and fun as old classic muscle. However, due to insane high prices now, kids are sticking to their civics and leaving the muscle cars to die with the old people. The market for classic cars will still exist, but to nowhere near the extent that it does now.

Stewart
Mar 29, 2008 10:32:38 AM

There will always be a market for 60's & 70's muscle.
.
If you don't see younger people interested in them, you
need to go to more car shows and cruise-ins, and not
import only shows...
.
I honestly can't believe that todays STI's and Evo's will become the
next collectors cars.
.
If that thought path were true, where are all the OMNI GLHS's and
other pocket rockets from the 80's?
.
They haven't become a major collectors item. Sure, they
exist, but in no way shape or form are they as popluar as
the classic iron. Never will be.
.
Do you guys honestly think there will be a bunch of 40-50 year old
STI's driving around in the future, with a HUGE following, and
be a major part of pop-culture?
.
No way.
.
They'll be scrap.

Chris
Mar 29, 2008 8:06:13 AM

It's all a matter of supply and demand. The 60's muscle cars in the US are being bought by baby boomers who had or really wanted the cars as kids. Very rarely do you see someone in their 20s or 30s driving a 60's classic simply because they're too expensive due to the fact that the boomers are buying them up like crazy (and with higher disposable incomes, they're paying the insane prices). I actually really fear for the future of classic cars. In 10-20 years when the boomers are reaching too old to enjoy them, the prices are going to drop. Problem is, there will be very few people interested in buying them. Most of my friends have no interest in classic cars. EVO's, STI's and Supra's take up most of their time. It's crazy to think that these tuner cars are going to be the next collectable thing. Add the fact that who knows what old/gasoline will be like in 10-20 years, and these cares are going to be worth very little. Carburetors atop massive displacement V-8's will be foreign to car collectors because they'll be too caught up in wastegates, twin turbos, and high winding horsepower (mainly because of the fuel situation). I personally can't wait for this transition because I'll be the dude blowing you all away with a 70.5 Camaro RS that I could actually afford with "old school" trickery under the hood. What's that smell? Nothing like carburetor exhaust. MMMMmmmmm

Tony
Mar 29, 2008 6:43:55 AM

The price of collector cars nowadays has become ridiculous. It's now no-longer possible for the general population to afford such cars, cars that we grew up with as a kid. It's unfortunatly the same story here in Australia. Cars such as the Falcon GT, Holden Monaro and so on from the 60s-70s have reached prices that are simply stupid. Even Aussie muscle cars of the 80s fetch prices in excess of triple digits. I have a car sales magazine (Unique Cars) from October of 2000 and it has numerous Ford GTs from the 70s that are priced between $25-$40k, whereas today these cars have asking prices 10x that much, and more! Check out http://australianmusclecarsales.com.au/

It's hard to say if the prices of these cars have started to fall. Like you said, if they do fall or have fallen in price, that's not such a bad thing, it's unfortunate however that the days have now gone when these classic, iconic cars were once affordable.