Prices of Muscle Cars on the Rise

[mchastek]

What's with the prices of old muscle cars these days? I've watched a lot of these cars appreciate several hundred percent over the last few years. Are people spending money on the "dream cars" of their youth now that they can finally afford them? I never thought I'd see million-dollar muscle cars, but that's now a reality.

[Viper 10]

What's even more stupid is the fact that people are paying ridiculous prices for fakes/clones. I can see why people/collectors would want something like a 1 of 2 ZL-1 Covette or ZL-1 Yenko Camaro, but the market has gotten stupid. I believe that it's because a few who have aspecific market cornered will get togetehr with others and manipulate the market... especially on eBay. I have seen it done in a couple of markets like the Chrysler Superbird/Daytona markets.


This frenzy is being fueled by dishonest restorers and speculators/collectors. The one's who pay are the kids who never get to buy their first love with a musclecar because they can't afford it... which is why they go out a rice out a Honda Civic.
Brad

[jwhitey]

The prices on cars are getting ridiculos on the fakes/clones. But the car creators and builders are benifiting from it. Ever since the discovery channel pick up hot rod showcaseing demand went up but supply is limited. But I think it's pretty cool that alot of off beat manufacturs are building full alloy body's of camaro's and mustangs. Good come back for them and a really good move in their favor.
I think what gets me the most is like the barrett jackson austion a totally unoriginal car can go for so much and be so imperfectingly enigineered. A few small addons can get big bucks at the auction.

[mchastek]

You're right - the auctions are crazy! The oddest cars are going for big money for no apparent reason. Seems like pure speculation to me. They've seen the prices go up tremendously lately, so they expect the same to continue. Much like the current Real Estate market (especially here in Southern CA).

[Maxwedge]

The Frenzy reminds me of how the NASDAC Bubble was created. Even in the late 80s early 90s when the first car boom started after black tuesday(in 1987 I believe) andything Shelby or Ferrari or Duesenburg were made of pure gold. By the Mid 1990s those prices had fallen in half fore the Ferraris and Shelbys and stagnated for the Duesenburgs. This falling of the market happened as the stockmarket started to gain real strength...hmmm lets see Stock market takes a dump, realestate and car values go up, stock market on the rise, real estate and car maket go down or mellows out....Hmmm
wonder if there is any connection?

[mchastek]

The Frenzy reminds me of how the NASDAC Bubble was created. Even in the late 80s early 90s when the first car boom started after black tuesday(in 1987 I believe) andything Shelby or Ferrari or Duesenburg were made of pure gold. By the Mid 1990s those prices had fallen in half fore the Ferraris and Shelbys and stagnated for the Duesenburgs. This falling of the market happened as the stockmarket started to gain real strength...hmmm lets see Stock market takes a dump, realestate and car values go up, stock market on the rise, real estate and car maket go down or mellows out....Hmmm
wonder if there is any connection?

Great insight! It really is interesting to think about cars being a market just like anything else. It's very easy to get wrapped up in the hobby and entertainment aspects of the business and not see the economics working behind the scenes.

People have to have some place to put their money, and I can't think of anyone who likes losing it - so moving out of the stock market into real estate and other markets (collector cars, precious metals, etc) seems to be the natural progression. I think we're in for some interesting times with real estate prices seeming to be at the peak. Who knows what'll happen to muscle cars?