Classic cars is a hard asset

Stimorolgum · Stimorolgum's Garage

Sharing some thoughts.

The central banks around the world are starting massive cash injections to save the economy. This is monetary inflation and will lead to price inflation.
Currencies will flee into safe haven assets or hard assets.

Your classic car will handle this very well over time.

Just to spread some light in the darkness.

Stay well everyone

dewolf · 03-25-2020, 04:40 AM

I think in the short term, people will start selling these off for much needed cash, as job losses start to kick in. I also think things will get to the point where a lot of cars will sell for way below their value. We are all in for a rough ride.

sammyg2 · 03-25-2020, 06:55 AM

Its hard to make money in rolling stock.

Stimorolgum · Stimorolgum's Garage

Quote:

Originally Posted by dewolf

I think in the short term, people will start selling these off for much needed cash, as job losses start to kick in. I also think things will get to the point where a lot of cars will sell for way below their value. We are all in for a rough ride.

You are absolutely right. I've already seen panic selling as people need quick cash.
If you have the money and the balls you can find bargains.

However, after this deflation in all asset classes we will have inflation.

Buckle up!

Zeke · 03-25-2020, 08:07 AM

It certainly will redefine what is a classic.

LakeCleElum · 03-25-2020, 08:41 AM

On a good day, my 3 old German cars would bring over $200,000. Sadly, that day has passed and won't be back for a long time.

asphaltgambler · 03-25-2020, 08:42 AM

I've been told by a guy I respect that when the stock market is down, but job market is not - that's when people turn to or buy classic cars. When the stock and the job market are both down - valuation is down, people sell which further perpetuates the downward slide

ramonesfreak · ramonesfreak's Garage

Lost my job last week. I need money quick. I’ll never sell my 911 no matter what. I have confidence in myself and wife to adapt and find a living somewhere.

Lost job in 2009. Couldnt find work for almost 4 years. Lost house, lost daily driving. Still have 911.

But that’s me and my goofy priorities.

Just took it out in NY for first drive of year today. Amazing car and it’s going nowhere

sugarwood · sugarwood's Garage

Quote:

Originally Posted by Stimorolgum

You are absolutely right. I've already seen panic selling as people need quick cash.
Buckle up!

What exactly have you seen being sold?

ramonesfreak · ramonesfreak's Garage

Besides the fact that I love my car and won’t part with it, I can say from experience after 2008 that my 911 saved me because it was paid off. After my VW got repo’d I was able to go back to work because I still had a car. Unfortunately I’m in NY where it snows so I can only get so much use out of it. But better some use than none and it’s now spring

I guess one could argue I should sell the 911 and use the money to pay for my Jeep loan. Screw that. Dog eat dog world

greglepore · 03-25-2020, 01:59 PM

Classic cars are a weird asset, in that they require an inordinate amount of care and maintenance. 95% of "collectible" vehicles are not "classics". Classics are ie Dusenberg Model J, early 60's Ferrari's, v12 Packards etc. Not the kind of stuff normal folks own.

unclebilly · unclebilly's Garage

^^^ and Porsche 911 Turbos...

drcoastline · 03-25-2020, 03:40 PM

Quote:

Originally Posted by ramonesfreak

Besides the fact that I love my car and won’t part with it, I can say from experience after 2008 that my 911 saved me because it was paid off. After my VW got repo’d I was able to go back to work because I still had a car. Unfortunately I’m in NY where it snows so I can only get so much use out of it. But better some use than none and it’s now spring

I guess one could argue I should sell the 911 and use the money to pay for my Jeep loan. Screw that. Dog eat dog world

I would disagree with that. The 911 will be around long after the Jeep is in the junk yard. Sell the Jeep buy a used beater for a few grand. I hate car payments. Not including the fun cars I have one nice car. I pay them off ASAP, keep them nice and I keep them long. Just got rid of my 2006 Commander Limited that I bought new only because it was totaled in a T-bone. Just barely 130K on the clock garage kept it was near perfect. If you didn't know they stopped building them you would think it was near new. I always have a DD that I buy cheap. Currently a 2007 Xterra I bought two years ago with 160K on the clock paid $2,500.00. Currently 210K on the clock, It runs great, looks good, clean interior. If a repair is going to cost $1,500.00 or more I will sell it for what I can and put the money into something else.

dewolf · 10:19 PM

^ Give it a few more weeks and you won't need to buy a beater. You'll be able to buy a decent car for half it's value. A lot of people bought cars on low interest loans. Times were good. There's going to be a lot of repo auctions coming up sadly.
Also see a lot of boats suddenly hit the market here in Aus. $100K boats for $70K or best offer.

id10t · 03-25-2020, 07:03 PM

buddy is doing his retirement in machine guns and a few late 60s muscle cars.

Even before the most recent drops he was doing better than most as far as potential return if sold right now.

RANDY P · RANDY P's Garage

Classic cars only go up when things are good- they are an emotional purchase and as a result subject to economic conditions.

In the meanwhile they suck up maintenance, space and insurance costs- and although they generally go up due to inflation they are a highly non-liquid asset. No one ever gets a premium when you're pressed to sell.

Fortunately, I'm about dead-even on all my cars, 1 of which over 30 years old, the other is 50. About all I can ask for.

rjp

RANDY P · RANDY P's Garage

Quote:

Originally Posted by ramonesfreak

Besides the fact that I love my car and won’t part with it, I can say from experience after 2008 that my 911 saved me because it was paid off. After my VW got repo’d I was able to go back to work because I still had a car. Unfortunately I’m in NY where it snows so I can only get so much use out of it. But better some use than none and it’s now spring

I guess one could argue I should sell the 911 and use the money to pay for my Jeep loan. Screw that. Dog eat dog world

Cut the jeep, buy a beater, don't sell the 911- unless you have to keep a roof over your head.

Sorry to hear about your recent luck- pay yourself first and foremost, and if you gotta play f*** the bank, then play f**k the bank. Protect yourself first.

Good luck hope you wind up OK.

rjp

93nav · 03-25-2020, 08:58 PM

This.

Quote:

Originally Posted by dewolf

^ Give it a few more weeks and you won't need to buy a beater. You'll be able to buy a decent car or half it's value. A lot of people bought cars on low interest loans. Times were good. There's going to be a lot of repo auctions coming up sadly.
Also see a lot of boats suddenly hit the market here in Aus. $100K boats for $70K or best offer.

dan79brooklyn · 03-25-2020, 10:07 PM

Almost bought a 1967 912 for $12,000 this morning. Was in discussion with the seller and then he replied it was sold. Just as well I suppose.

Stimorolgum · Stimorolgum's Garage

Quote:

Originally Posted by dewolf

I think in the short term, people will start selling these off for much needed cash, as job losses start to kick in. I also think things will get to the point where a lot of cars will sell for way below their value. We are all in for a rough ride.

We have a deflation now. When we have the covid-19 lockdown behind us people will be comfortable to spend money again. At that point, and some more monetary stimulus, we probably get inflation.