Is the value of our cars going to drop over the next year ?

[race-it]

I have seen the prices of Cobras, Mustangs, Vipers, and many other desirable cars we love to own so much begin to depreciate in some cases quite a bit.
What do you think will happen prices in the next year, and is now the time to buy or wait till prices drop further?

Race-it

[RedBarchetta]

In any market conditions, the patient buyer will usually find the better deals.

I personally believe that the floor hasn't been fully reached yet for some brands. As more people dealing with financial pressures choose to unload their toys, we should see further deterioration in overall valuations. But each brand has a floor (read up on price elasticity of demand and you'll understand why). In other words, at a certain value buyers would enter the marketplace for an item even if they were not willing shoppers prior.

And money always gravitates toward quality. So the nice cars will tend to have more price stability (or a lesser drop) than most. I would place the CSX (continuation) cars and Kirkhams in that camp. Some of the super high end ERA/SPF builds (regulars here know which cars I'm talking about) might also qualify, but they are more the exception than the rule. I would expect to see the most price erosion in pure completed kits, i.e. FFR (to name just one of many), and mostly because the build quality can vary quite substantially.

If I was an active buyer, I'd be patient. All of this just my $0.02 and usually worth half that on a good day.

-Dean

[madmaxx]

I can almost guarantee the value of your cobra or any "toy" car will not depreciate in value as much as the DJIA has in the last year. If you bought a cobra in the last year it was a superior investment decision as compared to investing in the stock market. I wish I would have purchased 4 cobras last year at this time.

[Steve Bisson]

The value of something is only what someone is willing to pay. The person who grew up and lives in an auto environment and has a passion for high performance vehicles, may be willing to pay top dollar for your Cobra. The individual who lives in a crowded city with no parking and has no passion for performance cars will find your Cobra as worthless. My .02cents if someone is willing to pay.

[Ronbo]

New Cobras have gone up since it costs more to build them...

Once the desperate seller's cars weed off the market the prices will creep back up. The economy will eventually rebound when the government stops trying to fix it. I don't think we've quite hit bottom yet, but you won't see a return to early '08 prices for a couple years at least.

Don't mean to start any political stuff here, I just don't see any rebound in the used market anytime soon. Once the unemployment rate stabilizes we'll know.

Great time to be buying though.

[mrmustang]

Will the values drop, not as much as the lack of potential new owners willing to spend their money on one.



Bill S.

[SP01715]

Originally Posted by madmaxx

I can almost guarantee the value of your cobra or any "toy" car will not depreciate in value as much as the DJIA has in the last year. If you bought a cobra in the last year it was a superior investment decision as compared to investing in the stock market. I wish I would have purchased 4 cobras last year at this time.

Thats funny. I payed cash for the SPF as well as some other toys, and I told my wife the same thing. The stuff we bought is worth more (even in this market which I think will get worse) than if I would have put the money in the market. I can't even watch my stock investments right now because it pisses me off.

[bdeutsch]

Not an easy answer. Based on what our company economist is saying as well as what you are reading/hearing, bottom may hit this year. Also, given general uncertainty surrounding jobs, lack of investment capital, whether the stimulous package will have any impact (ha-ha), I am guessing that most prudent folks will be conserving cash.

I think it is also safe to predict that you are going to see a thinning of the ranks of companies who make/sell Cobra replicas. If they were able to hold on through 4th quarter 2008, I am guessing that we will witness some failures by end of 1st quarter 2009 and some significant thinning out by end of 2nd quarter 2009. Would I be willing to bet the farm on my prediction, nope, but small businesses are being impacted at least as much as many big companies.

How does this impact values? At the end of the day, people who are not in a position to keep a car (for whatever reason), will continue to sell them. Those with the money to buy will be in a very good position to dictate what they will/will not be willing to pay for those cars. At the same time, companies that continue to produce Cobra replicas will be doing what they need to do to stay in business, which either means selling cobras at a price that people will buy them (see my earlier comment regarding those folks with cash) and/or staying alive by selling parts.

Apologies if this sounds a bit dark, I love these things as much as anybody else on this Board I suspect, but business is business.

[WildBill1965]

I, don't think most of us bought these cars for investments, they were dreams that most made come true. If the price goes back up ok, but in the meantime I'm smoking the tires and having fun!!!

[1985 CCX]

Doesn't really matter when taking a spin in the car. Of course when this snow goes away!

[race-it]

The subject came up when today I saw a very nice yellow Daytona Coupe for sale on ebay. The owner paid $90,000 for the car a year ago and was willing to let it go for $60,000. ( A huge loss) I know one car does not set the market standard but it does give new possibilities for those who may have wanted the GT-40 but could not justify the price. Take 30,000 off a GT-40 and you bring in a whole new group of buyers, Me for one!

Barrett Jackson prices were down, a lot in some cases. I spoke with dealers who did not take any cars to the auction this year because of the fear of low selling prices.

I could ask the President for one as part of my stimulus package!

[McDoo]

Originally Posted by madmaxx

I can almost guarantee the value of your cobra or any "toy" car will not depreciate in value as much as the DJIA has in the last year. If you bought a cobra in the last year it was a superior investment decision as compared to investing in the stock market. I wish I would have purchased 4 cobras last year at this time.

A fool and his money will surely be parted....

McDoo The real one

[tmareina]

With cars (any car), stocks, or anything for that matter...no matter how much the prices drop, you will not loose money until you sell...however if you are in the market to buy anything you will find the best price on the best product if you are patient and look for what you really want....in the current situation, if you are looking for a car, be patient and wait for the right car at a price you are comfortable paying...if you do that you will always be happy, with no regrets....Don't sell unless you absolutely have to...the prices will eventually come back up...I keep telling myself that as I watch my 457K fund drop in value.

Tom

[Fordzilla]

Yes, values will continue to drop as our National economic situation worsens. Patience will get you a great deal. As a performance car owner, I choose to ignore the market values & just enjoy my car.......... Maybe burn off only 6 pairs of drag radials this year instead of 8 to save a little money!

[Andrew Teal]

Jim,
As you know I was at Barrett&Jackson Auction and there where five or four Shelby GT Mustang that went for under 38.000. I also looked at a brand new Mustang GT Shelby that they wanted 75,000 for ten month ago that now is selling for 41,950. I was glad I didnt have a biding card as I my have bought one. I built my Cobra and I have several friends who wanted to due a kit and I said way built one when you can buy one that coast 50,000 to due that you can buy for 30,000 . When I did my Cobra in 1992 there where mybe ten Co. I think now there 35 Co. making Cobra. Most the kits are very well done, but it still alot of work if you built a car, but you due know every nut and bolt., for me it was a cash a carry, if I had the money I got the part. I still love looking down the hood, I have never goptten tried of looking at the shape. Well I sell it proable not as I cant re place it for what I have in it. If you want a car that has every thing then by a new Vett. but as Fred H. said to his wife when drive the Vett other Vett drivers give you the thumbs up, but when we drive the Cobra everyone gives you the thumbs up.

Andy

[tkb289]

Originally Posted by mrmustang

Will the values drop, not as much as the lack of potential new owners willing to spend their money on one.



Bill S.

Bill,

Your point is well taken. I am one of those potential new owners ... busy getting the money together and trying to trim the fleet to make room for a Cobra.

I have a good idea of what I am after, but once I am ready to pull the trigger, it will definitely give one pause to put the money down during this time of economic uncertainty. My only regret so far has been not being able to do this years ago. I guess better late than never.

- Tim

[Mando]

Its never to late to get a Cobra!

Regards.

[bdeutsch]

As I suggested earlier, while we all have a sincere passion for these things, at the end of the day business is business. Anyone who puts a Cobra on the market at the moment, IMHO, regardless of the manufacturer or build quality or engine/transmission combo, etc., will likely not be happy with what they will be offered for it...so, best solution is not to sell unless you have to.

[jhv48]

YES!

But ANY car you buy (within reason) right now will most likely be worth less next year.

Are you buying it for the thrill of driving/owning it? If so, buy it whenever you get tired of looking on from the sidelines.

If you are buying it as an investment. DON'T!