These Prices are Going Up

[Geoff C.]

I’m a Corvette literature pack-rat and save all the real stuff from an era, but not most of the stuff that is cranked out now, about back then. However, I do shop by the author and enjoy Nolands material’s among the multitude. I’ve also saved many plain classified advertisements for special Corvette cars that were dirt cheap by todays standards, but they are the cream of the crop. These beauities were cheap, or as Terry says “You snooze, you loose”. No doubt these are still around today, just scattered to the wind.

By the way, I’m not surprised when prices go up, only when they go down.

Geoffrey Coenen

PS Anyone recall the motivation for this sale?




MORE: Read it and Weep (or chuckle)

[Michael H.]

Re: These Prices are Going Up

Geoffrey,

I remember it well. That's my 28,000 mile Marlboro maroon 67 on your 2nd page. That sale was more of a show than a sale, although several did sell.

[Steve Wallach]

Re: These Prices are Going Up

I think I feel sick.....

Steve

[Duke W.]

Reality check!

Back in '81 when gasoline prices were at an all time high in absolute terms (higher than today when taking into account the purchasing power of the dollar), annual inflation was running at over 10 percent, and the average new car cost about 10 grand, how many of us would have been willing to pay ten to fifteen grand for a fifteen year old gas guzzling 427 Corvette - low mileage, original, restored, whatever...?

Heck, how many of us had 15-25 grand to spend on a "toy" in those days much less a hundred grand for a Cobra or Grand Sport.

In 1979 when I got out the the Air Force I had three grand in savings and was looking for a job. At least I had a house that I bought in '75, and it had "appreciated" about 50 percent. I got an outside sales job in the computer industry and bought a Diesel Rabbit to use as a daily driver. The SWC and Cosworth Vega spent most of their time in the garage.

I remember that era well. NOBODY wanted big block Corvettes! You could barely give them away.

Duke

[Rick S.]

Re: Reality check!

Wouldn't be nice if someone would build a reliable crystal ball?

[Geoff C.]

Capitalist Pig!

Duke,
I'd disagree with you on a coupla points - but you would call me a capitalist pig. This above seller owned a truckstop as I recall. Sold diesel.
Geoffrey

PS Who know that truckstop on I81(?) where the owner has a collection of machine pistoles and related armorment? Really neat stuff.

[Robert S.]

Re: Reality check!

You asked so...don't know how reliable they are but they have them on ebay No Corvette tax either...ha ha




Crystal Ball

[Geoff C.]

I have Brass ones they work well *NM*

[Loren Smith]

Re: I have Brass ones they work well

If we had a good crystal ball, however, we would have spent our money on Microsoft stock instead of old Corvettes. Then we could have used the earnings to buy a barn full of rare Corvettes.

[mike cobine]

Re: Reality check!

In Aug. 1981 at the time of this ad, gas was about $1.14 to $1.24 for regular unlead in the St. Louis area. Decent pay was around $8-10 per hour for about $320 to $400 a week. About $250 to $300 take home. $24 a week was going in the tank.

Most Corvettes were selling around $4,000 to $9,000.

So basically, you could just add a zero to those prices to compare to today. Would you pay $750,000 for that L88? How about $1,750,000 for the Grand Sport? A few $150,000 big blocks?

I don't see anyone writing on here about the great deal they got on a $150,000 435 hp today. It may be, but how many have $150,000 to toss out on a car they won't drive but a little?

[Michael H.]

Re: Reality check!

I wonder if the times 10 rule applies more closly to the prices from 40 years ago. In the mid 60's... Gas $0.25,today $2.50. New Corvette $5,000./today $50,000. Lucky Strike $0.30,today $3.00. New house $25,000, today $250,000. Milky Way candy bar $0.10, today $$1.00. Minimum wage $1.50, today.... well, I guess that times 10 rule doesn't apply to everything.

[Mark K.]

Numbers way off

The CPI difference between 1981 and today is nowhere near 10 times. The factor to use is 2.22 based on US Government figures.

Consider that brand new Corvettes in 1981 were about $19,000 (with options that would be considered mandatory today). This was for a car that most people considered to be "down market" from where the Corvette is currently positioned. But even using the CPI ratio yields a car at $42,000 in today's dollars. This is not far from the $44,000 MSRP of the current base Corvette.

As for "most" used Corvettes selling in the $4000 - $9,000 range, this makes sense as the Corvette (as most cars do) depreciates over 50% in the first 3 years (about the time most vehicles are put on the market). This is before the great increase in leasing when people sold when their 3 year loans were paid off. Of course many people held their cars longer - hence the $9,000 (which was at about 50% of a new Corvette) down to about $4000. But in no way do those number equate to "new" prices of today.

[Joel Falk]

Re: Reality check!

So which of those cars was the best buy compared to todays prices? Maybe the 427 Cobra or Grand Sport? Probably too few changing hands to establish a market.

I'd agree that most of the Corvettes probably appreciated 10X. How much is a Yenko Camaro selling for these days? 300k? 10k seems a pretty nice buy for that one.

[Duke W.]

Taxes

Back in '81 the top tax rate on "earned income" was 70 percent, down from a whopping 91 percent in the fifties and sixties. I think the top rate dropped to 70 percent c. 1970. Reagan pushed a tax cut through Congress that dropped it to 50 percent and the economy took off.

Interestingly, even today with lower tax rates the total federal tax take of all personal income remains in the range of about 20-22 percent as it was when tax rates were much higher. Go figure!

Duke

[Michael H.]

Re: Taxes

In the end, I have to wonder if things are actually much the same as they were 40 years ago. The number of new Corvettes sold every year is probably near the same (per population) as in the mid 60's. Probably the same number repossed as well today.