Re: Truck Restorations in the Future [somewhat long]


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Posted by BobS on Thursday, May 14, 2009 at 07:45:20 :

In Reply to: Truck Restorations in the Future posted by Paul (in NY) on Wednesday, May 13, 2009 at 22:44:13 :

This is a quick reality check on what is not really a good investment.

There has to be a future demand market for museum quality or restored antique motor vehicles for them to survive. Take a look around at the new upcoming generation that just graduated from high school and see where they have their values. There are a very of them percentage wise that have any interest in this area. Then look around at all of us old grey haired folks that actually own the older stuff. Our kids are now the generation who have stepped up to the local government offices and are being influenced by their kids [our grandchildren the "cleaner & greener" generation] to clean up the neighborhoods by passing ordinances to get rid of any non running motor vehicles. The antique stuff has no meaning or value to them. To most of them these vehicles should be placed in a building with chrome guide posts connected by velvet ropes and viewed by families on weekends. So in twenty years who is going to pay top dollar to own and maintain any of this stuff?

As a further example, in 1973 I worked for an autowrecker who specialized in antique NOS & used auto parts. Back then a restored Model A Ford would sell within a few months bringing an average top value around $15,000.
According to the online inflation calculator http://www.westegg.com/inflation: "What cost $15,000 in 1973 would cost $69,283.46 in 2007" So if you bought your Model A Ford in 1973 and sold it in 2007 for $60,000 [4X what you paid for it] you actually LOST nearly $10,000 due to inflation, + you paid an additional amount of income tax on your profit at 28% of $12,600, so other than having the enjoyment of possessing & maintaining; what did you really gain?

Twenty years ago my best friend gave his son a 1969 Z28 Camaro convertible that needed restored. Two weeks ago his son [now age 39] called him and asked him if he wanted it back. His kids [our grandchildren]have no interest in it. He ended up selling it cheap locally just to get rid of it. The saga continues. Diminishing market + not cost effective to own with higher costs for storage in the form of rent or property taxes will eventually = lower demand & lower value.





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