Quote:
Originally Posted by scottmandue
To answer the OP my uneducated opinion is it is not a 911 thing... 60's Vettes are going for six figures... this is just "classic car" mania. Not necessarily a good or bad thing just what the market will bring for these cars right now might go on forever... market might turn around (down) in a few years, only time will tell.
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"Go on forever." No.
It's amazing how markets and bubbles are. Many might remember the infamous "RE Prices NEVER Go Down" thread here on PPOT. During the last real estate bubble 8 or so years ago. It was amazing. 95% of the posters here claimed that real estate prices NEVER go down. Because, "they're not making it any more."
That, of course, ignored the many RE bubbles that had inflated and deflated in the past. Weird, and a complete denial of history.
So, people (in PPOT and the world in general) were buying overpriced bubble houses in Las Vegas, Phoenix, Port St. Lucie, $700K houses in Albuqurque, etc. Only to pay the price for not learning from history.
Anyone who has been around long enough and invested (in anything) long enough, and has any common sense, knows that all asset classes rise and fall over time. Always and forever.
It's the nature of money and investing. It flows from one thing to the next, in cycles.
I agree the current car market isn't a "911" thing, it's the collector car market as a whole.
But, it's nothing new. It hasn't happened to 911s before, but that's mainly because of their age. They were too young and plentiful during the last few collector car bubbles. Air cooled is special now, but it wasn't when they were still being made, all the way up to the late 90s. And, there were so many made (by collectibility standards).
But it has happened with other cars, big time. In the late 80s, Ferrari 308s were selling for $125K, and Dinos for $250K+ (in late 80s dollars). They "weren't making them anymore" after all. But those Ferrari prices popped, and that same $125K 308 eventually became a $25K 308. And the $250K dino became a $75K dino.
And, of course, the American muscle car bubble. Huge 6 figures cars collapsed in price.
This is no different. No speculator asset stays up "forever."
The 74 US Carrera is a good example. Someone who pays $150K for a 175 hp US model CIS injected 911 is going to lose their shirt.