Philosophy, the future predictions, ramblings

[Bill Farmer]

[Terry F.]

Re: Philosophy, the future predictions, ramblings

My opinion. The future is now. The price is peaking with the baby boomers. Those people that wanted or owned a 63 to 67 in there earlier days are buying them now and driving the prices up. Also, people that have been recently disappointed in traditional investments have started to move money into tangible assets like realestate, collector cars, gold, coins, etc.

Also for what ever reason, these cars have an emotional appeal to them. People are buying more than a car. There is an emotional gain to owning and driving one. I think it has a lot to do with style, power and sexuality.

To me, a nice corvette is like candy. Driving it is like taking it out of its wrapper. Chew on it and it won't last very long.

They stopped making land a long time ago. They also stopped making these cars a long time ago.

The only other thing that is worth adding is that there is an awefull lot of spare change floating around out there (I wish I had some of it). There are a lot of people in this country with discresionary money and fewer and fewer nice corvettes. I should qualify that though....they are still makine 1967 435's and L-88's.

Where will it go? It will go the same as the model-A's. They had there peak and have shriveled up now. Corvette's in my opinion will peak and die out also. Hopefully, I will be around to buy a few nice one's up

Just my opinion. Please always excuse my mispelled words Terry

[Donald M.]

Re: Philosophy, the future predictions, ramblings

Bill, There's an old Sinatra song lyric "life keeps going in cycles..." and I think that pretty much explains the Corvette market. Now, the driving forces behind these cycles changes from time to time, but the cycle does still occur.Supply and demand are still the number one drivers of price. Corvettes are a way of life, not just transportation devices. I think that this intangible is what makes the car so desireable.
Don

[Larry P.]

Re: Philosophy, the future predictions, ramblings

There are more people then ever before with more money than they need.
I bought my 60 to restore after a friend explained that he just lost 20K on a new Jag as he drove out of the dealers lot. Model T's can't be driven on our highways like an old vette. The model T street rods are bringing pretty good money. I think the vettes will hold value better then the pre-war cars. It doesn't really matter to me, because I won't ever sell mine and I don't think my kids will either.
LP

[Wayne W.]

Re: Philosophy, the future predictions, ramblings

It depends on how you look at it, whether the price has gone up that much. I can remember in the 50`s going to the little country store near home, a Twinkie and a Coke was $0.10. Yea, thats 10 cents, and the Twinkie was about twice the size as it is today. Today, the same items are more than $ 2.00. So at that rate of inflation a $2500 Corvette would now be $500,000.

[Rob M.]

Re: Philosophy, the future predictions, ramblings

Shouldn't that be $50.000 ?

greetings,
Rob.

[Mark #28455]

same thing happened in the 1980's

It's all a big cycle. Stock market is flat so people who know little about Corvettes start buying them as an "investment". They will buy anything! Just look at Barrett-Jackson and how high they bid on obviously fake cars! Once the stock market picks up again, they'll all try to sell and the prices will drop again - in the late 1980's to early 1990's the 1967's fell from $80,000 to as low as the 30's for a really nice car. It'll happen again!

Why the Corvettes? Baby boomers remember them as really cool cars, so now they want one. Once the baby boomers are on retirement then a lot less people will be looking to pay top dollar for a trailer queen. The young guns now all drive imports, so I guess they'll all be looking for a hopped up 1980's Acura .

Don't look at it as an investment, but as a fun car to own and drive. After all, you could buy a new GTO for $30,000 but wouldn't you really rather have a 435 HP convertible?

Mark

[Don Izzo]

Re: same thing happened in the 1980's

Very interesting conversation and a very interesting questions.

I recently was in the Hilton Head, S.C. area looking to purchase a town house near the beach. When I met with my broker for the first time she told me that the high demand for these homes was suddenly enjoying an intensity not seen before. The Real Estate industry attributes this sudden increased demand to the fact that the "Baby Boomers" are "comming of age". After many years of raising kids, paying for college and marrying off thier daugters and paying off the mortgage, they suddenly find themselves with large amounts of disposable cash. Also I was told, many of the "Boomers" are comming into inherited money, often large amounts, from the proceeds of the sale of last to die parents Estates.

Many find themselves looking for a place to park this money while being able to enjoy the experience without the high risks often associated with the stock market.Who didn't take a big hit in the 90's?

But fear not! For these types of owners are often the first to bail out and often take the big hit on the high sticker prices they pay on what ever they buy. Case in point my neighbor A CPA, has a 64 GTO. Myself owning Three award winning show cars, ( I drive all three) I couldn't wait to see the car. When it arrived it was immediately locked in the garage seldom to see the light of day. "Investment!" I was told. When I was finnaly invited over to see the car I had a difficult time trying to hide my horror when I saw the awful body and paint work that he had done on his prized Goat. Not being a car buff "Like all of us", he paid through the nose for the car and then the awful resto work. He will be severly scalded on the resale price when he grows tired of parking the new Caddy out in the rain and snow and decides he wants his garage back!

Don

[Roy S.]

[Warren F.]

Re: Philosophy, the future predictions, ramblings

Bill:

I was sixteen in 1970, and remember seeing the recently "new, exciting, sexy Corvette that debuted just a couple of years earlier. I was awestruck by how beautiful the lines were on this automobile and that nothing else looked like it, by any other American manufacturer. I believe the same can be said for the 1963 styled Corvette body as well.

With that said, these two Corvette era models, specifically '63 thru '67 and '68 thru '72's have become 'milestone' cars in a sense, and have secured a place in automotive history, based on your earlier assertions of performance, styling, innovative engineering features.

They just don't make them, like that anymore. I have a '02 Corvette coupe that is my main car, and while a comfortable car to drive and enjoy, sitting in the car looking around at all the monochromatic plastic material used to build the car, is just sad. The exterior style is so so. There just isn't that wow feeling I get when I walk into the garage and my eyes hit upon that '71 LS-6 coupe sitting there, and the goosebumps that I get when I fire up and listen to the factory big block solid lifter engine sing and watch the whole car shake and rock, as though it's getting ready to leap from it's caged surroundings.

I think some of us were just lucky to have be around during this great automotive era.

[Mark #28455]

price to earnings ratio

The only reason these cars are going up by so much is that there is somebody who is lacking in the brains to cash ratio who is willing to keep buying at any price. For a past example, look at the dotcom fiasco from just a few years back and the past real estate bubbles. Sooner or later, the "hot" investment will be something else and some poor fella is going to have to unload that car in a market with a glut of really well restored cars.

Happens all the time in the investment world, you can always spot the sharp ones as they are buying when nobody wants it and selling when the price is topping out. In my opinion, now is a GREAT time to sell your 1967 435 HP car. Where would I invest now? Likely in a good fund in the "sin" sector - booze, tobacco, and casinos!

Go figure!
Mark

[Roy S.]

Re: price to earnings ratio

I sold two of my 435 cars in recent months, owned one 23 years and one 18 years. I immediately went into remorse and have since bought the car I owned 23 years back and yes I paid more than I sold it for but I decided it meant too much to me to sell. I agree completely this will cycle, it just appears to me to be different issues than those that existed during the previous bubble.

[Terry F.]

Re: price to earnings ratio

I agree! Not that it matter much Terry

[cc walker]

Re: Philosophy, the future predictions, ramblings

as to land, there was plenty made first time.as to cars i tend to agree
with BIG AL EINSTINE,he knew of only two things that were infinte,the
universe,and human stupidty.a fellow here just bought a very plain 64 vette,
on e-bay for 40,000-sb-auto,very plain.he can afford this,he ask no one or
sought no help.how he is crying to everyone he got screwed,it was fraud,now
it's everyone else fault.he did not go to look at the car before he bought
it.to the point,vette's are going up partly because of fools like this one.
i only hope this moron buys another one.
cc

[Terry F.]

Re: Philosophy, the future predictions, ramblings

I would never buy a corvette as an investment unless it was nearly given to me. I would spend good money on a car that was unmolested and I could look at it myself. I have sold a few parts, etc. over the years. My wife and I talk about it from time to time because of the amazement we have for what people have paid for some of the things I have sold. She came up with a term that is most excellent! She calls it the "crow factor." As far as birds are concerned, crows are pretty smart. They are fun to read about. They have been observed playing taking turns sliding down snow banks on their backs, they are good at getting food out of containers, all that stuff. They are also attracted to shinny things like tin-foil and stuff and will build there nests out of it. They will take your jewlery if you leave it out where they can get at it. I have read that they will collect such items in little piles. Sound familiar. I got hooked on selling car parts on ebay once when I would go to car shows and buy a $7.00 item and watch it sell on ebay for $80.00. It was a seatbelt cup holder out of a 68 corvette. I must say though, I have been on the buying end of the deal also and I have paid for my share of parts. I make sure I want what I am buying though. I really appreciate the time people give to the board....best regards everyone. Terry