Analysts tell the Wall Street Journal that the low end of the classic car market is getting hammered (so to speak) by sagging real estate values. "Home equity was the ATM out of which a lot of people were withdrawing money to have fun," says McKeel Hagerty. The CEO of Hagerty Insurance Agency says the market for mass produced "enthusiast cars" in the $30k to $50k range has tanked by two-thirds in the last two years. Another factor: age. Apparently, the people who pined for cool-but-not-collectible American iron of the 50's and 60's during their youth are getting older and less interested. The president of Hyman Limited Classic Cars claims the high-end of the market remains unaffected by the credit crunch; as collectors who buy hand-built, limited edition classics don't need to mortgage the mansion to pick-up a toy or twelve. Wordsmith Dan Carney would like to leave you with the impression that today's depressed low-level market makes it a good time to buy a classic, but we remember the price crash of the late 90's and reckon the down economy will sink the market even further.
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i’m watching you, gto…
Mark my words:
Japanese classics will be the next big thing.
I’m sure you folks will scoff at this notion, just like people scoffed at the idea of a six-figure Camaro.
Track down those Starions, unmolested Civics, and I-Marks while you can.
Anyone who did a MEW (mortgage equity withdrawal) to buy a classic car is nuts.
Track down those Starions
I really liked those cars when they came out, and in many ways (i.e., turbocharging) they were the first shot in Japans shift toward ‘hot’ cars.
I’d be curious to know how the low end is defined. I mean, a 383 Roadrunner or Superbee is not exactly a rarity, and I’ve seen nice examples going for more than I would have paid for a clean Six Pack car 10 years ago.
Along with the Diamond Stars, Supras, etc this is the time to buy Corvette ZR-1s, Buick GNs, Mustang 5.0s and other late model muscle cars.
Hell the prices of Buick GNXs alone are proof that 1980s cars are the next buy low/sell high trend in the car biz.
This blog foreshadows that Gen X will get in the car collecting game pretty soon, people!
“I’d be curious to know how the low end is defined.”
Average American iron from the 50s, and early 60s. Muscle Cars are still “OK” but that bubble is leaking air as well.
Sports cars, classics, and the like are likely to be immune in the short-term, but this falling tide will eventually catch all boats.
–chuck
http://chuck.goolsbee.org
Ah, the Starion. My friend’s Starion had a turbo seizure at one month after the warranty was up (I believe it was a 12 month warranty).
I still won’t buy a Mitsubishi.
One advantage to the 1960’s iron (well, a couple).
I got my license in 1982, and the vehicles sold in the 70’s and early 80’s were horrible, so you had to go back to the 60’s to get anything interesting.
Also, the average Joe can still fix a 60’s car himself – the newer ones are much more complex, and the ones built in the last 5-10 years will be worthless as collectibles that can actually be driven in the future.
quasimondo :
Japanese classics will be the next big thing.
screw starions, 300ZXs are where it’s at.
/waiting for someone to offer stupid money for mine ;)
I doubt the 300ZX will ever be a huge classic, it’s such a pain to work on! The 240SX, on the other hand – it’s money. On the other hand, I could be wrong.
Here’s one for you: 1st gen Miata.
Please…old age does not equate w/lack of passion! Diapers didn’t stop the astronauts and it won’t stop this generation. Mark my words, you will see celebrity enthusiast Wilford Brimley at Westworld, hocking early VIN Jazzy’s.
Samir Syed :
I doubt the 300ZX will ever be a huge classic, it’s such a pain to work on!
First gen (80s), not second generation. Otherwise known as the forgotten generation…
240SX is already in high demand for drifters to crash race.
Time to go pickup that ’66 Continental that I’ve always wanted…
I sold a 1990 Miata with only 75k on it last spring and could I only got about $2500. It was clean except for a rust spot on the front of the rear quarter panel. It ran and handled like new.
It is a great used car, but probably too common to be collectible any time soon. Same goes for 5.0 Mustangs (my high school dream car). Grand Nationals aren’t so plentiful. Subaru Brats are interesting and somewhat rare, as are the Chrysler Shelbys, and the Starion.
Outside of Supras and twin-turbo Zs I don’t see Japanese cars approaching the level of interest and prices that classic muscle cars command. I was of driving age when those cars were new and interest in them wasn’t anywhere near as high as the interest in the original muscle cars when they were new.
I, for one plan on having a stable of Japanese rides from the 70’s some day.
Datsun 510- oh yes
Datsun B210- (really) poor mans Alfa GTV
First-gen Honda Prelude (aka Qualude)- love it
An old stripped-out Honda 600 with a CBR engine- already drawn up the schematics
excellent
Classic Cars Tank? Japanese Classics? Talk about your contradictions in terms. Anyone who uses the WSJ to guide them on buying a collectable car should have their head examined. I don’t read this website for stock tips and I hope no one else here does either. Hondas, Datsuns and the like are not very collectible. A good example is a 1974 Honda Civic. A mint condition civic although rare can be had for a few weeks salary. They are not worth alot because there was nothing special about them. No limited production, no special powertrain or anything like that. Yes, the market is soft on collectible cars but, so is the entire economy. That’s what the WSJ should tell you. There are some good deals on some collectible cars right now as there is with most everything else, cars, real estate, land, stocks. It’s important to put this into proper perspective. A collecible car can still make you some decent money. They key is timing.
I’m a Gen Xer (barely), and the only “cool” Japanese cars that I can think of from the late 80’s through early 90’s were the Honda CRX and, marginally, the Mazda Rx7 and Datsun 280z. Most of the kids at my school drove late 60’s/early 70’s muscle cars or trucks. I think that 5.0 Mustangs will be way more collectable than any Japanese tin.
I do think the time is right for 1980’s-vintage performance cars to increase in price, although still staying relatively inexpensive compared to 1960’s muscle cars.
A few interesting ones that come to mind:
1984- Ford Mustang SVO and GT
1985- Chevy Iroc-Z
1983- Mitsubishi Starion/Conquest Turbo
1984- Dodge Daytona Turbo
1984- Dodge Omni GLH & Shelby
1983-1988 Ford Thunderbird Turbo Coupe
1987 Pontiac Fiero GT
1985-1987 Merkur XR4Ti
1983- Porsche 944
1982- Mazda RX-7
Steve-O: Let’s not forget some still relatively affordable (and in some cases dirt cheap) ’90s machinery, as well:
-Ford Thunderbird SC
-Dodge Spirit R/T
-VW Corrado SLC
-Olds Cutlass Calais Quad 442
-Olds Achieva SCX
-Ford Taurus SHO (Gen 1 or Gen 2)
-Mitsubishi Galant VR4
-Mazda MX3
-Ford Contour SVT
-Toyota Celica All-Trac Turbo
-VW GTI Mk. 3 VR6
-Chevrolet Impala SS
-Subaru SVX
And this of course isn’t counting the Japanese iron that is currently trading for stupid(ish) money (e.g. FD RX7, NSX, Supra Mk. 4, Eclipse/Talon, Integra Type R, 240 SX, etc.)
Still waiting to buy that 68 roadrunner I should never have sold in 81. Classic cars online.com has a nice selection, but the prices people want for junk is ridiculous. The party is over quite obviously as the equity blitz is over, the credit cards are maxed out, ( the media said suspiciously little about Christmas sales, unlike every other year) and now 401k’s are being attacked. After retirement money nothing is left. Oh, yes, the pink slip coming later this year for many. If you have been waiting for the classic car market to tank, your wait is about over! Pick your toy out now as many realize a muscle car cant be lived in, eaten, drank, or used to heat your soon to be foreclosed home.
most of those cars are crap in my eyes anyways.
As someone born in 1981 I lust after 3rd gen F-bodies (You rock? No, IROC), Carrera 3.2s (THE 80s yuppie icon) and rotary power.
And that, I feel, is how the market is headed – as those guys get older and my generation gets money we’re going to be interested in what we drooled over as kids, not something our grampa fondly remembers driving.