Will reality ever phase Cobra owners? (economic crisis)

RedBarchetta · #1 (**permalink**) 10-09-2008, 03:15 PM

I'm quite amazed at the overall elasticity within general Cobra ownership circles during what are truly epic times that we live in.

While I'm impressed with the resources that some have here to either start, continue progress or complete their respective builds (no names need to be mentioned...kudos to those that are creating some amazing cars), I have to think that at some point various vendors (and owners) are going to start feeling the effects of a recessionary economy and all the dirt that this brings with it. The Dow, S&P500, Nasdaq, Nikkei and CAC (Euro) indices, on a combined basis, are down on average 43.4% off their all-time highs (which were, coincidentally, about one year ago). Retirement plans for many citizens are being laid to waste right before our eyes.

I have a decent job and I'd like to think I'm on firm ground. But there are no guarantees in life. I'm fortunate to own a clean SPF and I can still afford to put gas and oil in her. But God forbid, if I spin a bearing then 'ol Red will be moth-balled for quite a while. I'm not saying that I'm going to do more polishing than driving. It's just that disposable income to keep this particular hobby alive and well is pretty much not disposable any longer. It's come down to just enjoying what I have (which I'm more than comfortable with...heck, I'm truly blessed to have this car) and just hope it don't break.

I'd like to hear others' views on recent events and how these times have (or maybe have not) curtailed your plans/activities as it relates to Cobras and the hobby at large. Based on what I observe, there are quite a wide range of cars and income levels represented here. Should be some interesting reading.

Regards,

-Dean

Dwight · #2 (**permalink**) 10-09-2008, 03:33 PM

I'll drive mine. Just dropped $4000 more on my motor. The worst things get the cheaper gas should be. We'll see.

Dwight

marcocsx3121 · #3 (**permalink**) 10-09-2008, 03:38 PM

Good points all. I'm not a current Cobra (replica) owner and only lurk on this board since I had a "real" one back in the 1970s. In addition, I'm retired and living on a somewhat comfortable, but fixed income. The current economic situation has caused me to change the way that I look at every last buck that I spend. I used to buy a new sportbike every couple of years, viewing the transactions as "loose change". No more. My Corvette (pardon!) has over $30k in the engine, a project that I got into back in the days of good cash flow. In the present environment, I have to wonder what I was thinking about.

cobra bill · #4 (**permalink**) 10-09-2008, 04:24 PM

I'm fortunate in that I bought my kit and started to assemble all the parts 2 years ago, I was waiting on getting may garage expanded to start the build, I added 32' by 40' onto my existing 2 car garage, so I now have 1760 square feet of garage space to work in, with 14' ceiling, that's done now and I will start the build this winter.
So the economy will not hurt my ability to finish the car, with the few part that I still need will not hamper the project.

patrickt · #5 (**permalink**) 10-09-2008, 04:58 PM

The truth of the matter is, at least for me, that driving a high-end car like a Cobra is not as much fun during bleak economic times, regardless of the degree that those times may be affecting you personally.

HI Cobra · #6 (**permalink**) 10-09-2008, 05:06 PM

Somehow my timing was pretty good - I got rid of some mutual funds when
the market was in the 13k's and bought some real estate and while I was at
it was able to snag my Kirkham. I remember watching the market dump on
2002 and waited and low and behold things bounced back. Not so sure how
this market will recover - I'm sure it will but how long will it take? - I'm not getting any younger. So far I'll get by ok but I sure am not buying anything
else!

Smokingcobra2 · #7 (**permalink**) 10-09-2008, 05:49 PM

Mine was payed for the day i bought it. I will still enjoy it, BUT as the toy it is i may end up selling it if i hve to in the spring to make up the differnece i have lost in my home value to continue on my goal of moving to North Carolina next summer. Bought land on the water and hope to start building in the spring and want no mortage once we go. Or keep the car and have a small 40 g mortgage. Time will tell how bad things get and may not move for a couple years
joeg

madmaxx · #8 (**permalink**) 10-09-2008, 06:20 PM

Cobra was the best thing I ever bought last April, if I would have left the money where it was it would now be down 30%, I would hope an SPF with a Roush 427 is worth more than $42K so at worst I broke even with the market and I have a great toy to play with. I always told people pay off your house, everyone replied do not do that, you can get a better return in the market, wonder how the feel now. If you look at a graph of the market since 1990 it has been horrible unless you sold at the exact right time. The only method to wealth is brute force and ignorance, live below your means and save. IMHO the market is the least of our concerns, this whole economy is cracked, soon their will be tent cities, a depression may very well be at hand.

63mercury · #9 (**permalink**) 10-09-2008, 06:39 PM

Well, I'm also retired and fortunate to have a part time job which is paying for my Cobra build, when the economy turns around I may put the 63 Merc up for sale to get cash to finish the Cobra. We are also putting our house up for sale in the spring in hopes of moving to Arkansas so winters won't be as bad on the wifes RA, but for right now I'm still building and hunting down parts as I get the cash.

Carl.

Great Asp · #10 (**permalink**) 10-09-2008, 06:41 PM

I was talking to a lady today that said she was very worried about the shape of things in the economy.

I asked her if her life, or life style has been affected, she said no.

I asked her is anyone in her family or friends has been affected, evicted, or lost their job because of the Wall Street problems, she thought and said no.

I asked if she knew anyone, who knew anyone that had been effected, she said no.

I asked her if her life style has changed because of high gas cost, or the housing market issues, she thought and said no.

I asked her if she felt better, she said yes.

I am not stupid, there ARE real problems and it effects many people with loss of jobs, or housing (let's say you rent and pay your rent on time, and your landlord defaults), or retirement values. These people get blind-sided. But the media has a lot of people worked up when their mortages, their life style is not affected. Why partake in hand wringing if you are not at risk?

E

madmaxx · #11 (**permalink**) 10-09-2008, 06:47 PM

"But the media has a lot of people worked up when their mortages, their life style is not affected. Why partake in hand wringing if you are not at risk?"

I agree that is why the market dropping is of no importance to everyone except the ones recession proof, but the next aspect of people not buying cars, homes, and all associated equipment will cause the bleeding, layoff's etc. My company annouced hiring freeze yesterday and organizational changes by December with those affected notified by January. It is a 40 billion dollar company, or should I say was, now probably 24 billion. GM layoffs are around the corner, I am sure Ford and Chrysler to follow.

madmaxx · #12 (**permalink**) 10-09-2008, 06:51 PM

Being the kind hearted person I am, if anyone gets into a bind and needs to unload their cobra to pay bills, I have $10K, for a Superformance I'll go $15K and Kirkham $20K.

Great Asp · #13 (**permalink**) 10-09-2008, 07:14 PM

Quote:

Originally Posted by madmaxx

"But the media has a lot of people worked up when their mortages, their life style is not affected. Why partake in hand wringing if you are not at risk?"

I agree that is why the market dropping is of no importance to everyone except the ones recession proof, but the next aspect of people not buying cars, homes, and all associated equipment will cause the bleeding, layoff's etc. My company annouced hiring freeze yesterday and organizational changes by December with those affected notified by January. It is a 40 billion dollar company, or should I say was, now probably 24 billion. GM layoffs are around the corner, I am sure Ford and Chrysler to follow.

Certainly there will be people that will have a hard time qualifing for the vechicle or house "they want", or trying to borrow more than 80% of the homes property value. It doesn't mean they will not be able to buy.

And it is a great time to buy a house right now. Values are down, and with good credit and a proper asset value to loan amout ratio, a loan can be had.

good discussion!

E

sp1410 · #14 (**permalink**) 10-09-2008, 10:51 PM

As one who is- as of yet- not severly effected by this downturn I count every day as lucky, and my heart goes out to those who are taking a thrashing. I hope, for everyone's sake, that this sorts is self out sooner than later.

I sold my beloved SPF1410 earlier in the year for upcoming college expenses for my twin sons. In five years I'll buy another SPF.

But like PatrickT says up above "The truth of the matter is, at least for me, that driving a high-end car like a Cobra is not as much fun during bleak economic times, regardless of the degree that those times may be affecting you personally."Well said.

Best of luck to everyone; grip the handlebars tight- this ride might be rough.

Good luck to us all...!

CoupedUp · #15 (**permalink**) 10-09-2008, 11:48 PM

Dean,
Some of us know that you would be more than happy just waxing...

Seriously, I have all but stopped driving the coupe to work. The $35 round trip is bad enough, but the bigger threat is breaking something. It is really hard to walk past the coupe to the daily driver, but like you I could not afford a major problem right now. I have a track weekend at Big Willow coming up at the end of the month and am just praying I don't break anything. I have been jonsen' for a track day since WSCB, so I have to go...

Doug, SPC0088

trularin · #16 (**permalink**) 10-10-2008, 04:59 AM

Red ( Dean ),

That was a good read. I feel I have been fortunate enough to own and drive my cobra.

RedEsprit · #17 (**permalink**) 10-10-2008, 06:15 AM

"The truth of the matter is, at least for me, that driving a high-end car like a Cobra is not as much fun during bleak economic times, regardless of the degree that those times may be affecting you personally."

Disagree. I'm in commercial finance (high stress even on good days). There is nothing better for me than coming home after work and de-stressing myself with a quick high speed run. Yesterday, I took it out just to run to the store for paper towels. Having the car is better than meditation. In my opinion, Cobras should qualify as a legitimate medical deduction to deal with stress related illnesses.

madmaxx · #18 (**permalink**) 10-10-2008, 06:53 AM

"The truth of the matter is, at least for me, that driving a high-end car like a Cobra is not as much fun during bleak economic times, regardless of the degree that those times may be affecting you personally."Well said.

I completely disagree, I enjoy mine in bleak and good times I did not buy for other people, what have they ever bought me. Everyone that bought on credit finally has to pay the reaper. I have never paid a penny of interest in my life and started with nothing, worked since I was 9 and I am 41. Always lived at 50% my means and proudly own a 20 plus year old boat that I bought when it was 10 years old. Not the same for some of my aquantenances with $90K boats that are now being repossed. Sure I will call the bank in December and offer $30K on the boat, the buyer and bank both made bad decisions and now I will try to help dig them out. Guess we should blame it on everyone but them.

As far as college funds the two 529's I set up my kids are down $30K, I set them up when they were just born, 3 and 1 year ago. Probably a good thing, let pay for their own I paid for mine, makes you a better person IMHO.

ekrupa2 · #19 (**permalink**) 10-10-2008, 07:00 AM

Sold two investments to pay for my SPFa year ago September. Had I kept those two investments they would have been worth what they originally started out as...so I am happy about that. I am looking the other way on the current crisis (i have 20 years to retirement as I am confident now is the time to buy rather then sell). I have put 2700 miles on my car this season and plan to keep enjoying it as much as possible.

Sal Gerace · #20 (**permalink**) 10-10-2008, 07:04 AM

Since I have my Cobra on the road I have had many memorabile experiences that I otherwise would not have had. I have met new people, drove on a race track at SAAC. Talked to many at the local gas station that I probably would never have met. I have also became a pretty good wrench in the past two years. It is definatly a smile maker when there are other things on the mind (stock marker). Dow down to 8366 right now as I am typing.
Financially yes I have had to cut back a little. Taking the trip to NY for some touchup is going to have to wait since the trip will cost me a $300.00 truck/trailer rental each day, two days. I take the Cobra out less now for the casual cruise. Mainly to try and offset some of the losses with this economy. But besides all this,
Cobra Ownership is Priceless