[QUOTE=Vombil;80454]That is a perfect example of good value for money, and investing in a car that shouldn't go backwards. You regularly see people paying good $ for lesser and far more common cars like SLR5000 or HQ GTS253/308 coupe that really need full restos done. Money like $25k+. By the time you restore the thing properly you'd have that HQ GTS350 coupe. unless you were able to do most yourself.Originally Posted by HK1837
I doubt any car could be considered an 'investment', considering their running costs. If you would have put $5,000 cash into an interest bearing deposit back in 1970 instead of purchasing a Phase 3 GT-HO, you would be a lot better off today not owning the GT-HO over those years. On the other hand a good original or restored Ford Model T still commands good $$ today. They were only $200-300 new, still not a good long term investment.
The value of old cars goes thru lots of ups & downs over time, but there are factors other than just desirability which have an effect on their price. The car's condition, rarity & the prevailing economic climate also have a huge effect.
You ask, when does a collectible or desirable car turn into a Vintage car ? I think you need to firstly check out the definition of a 'Vintage car' & secondly check up on what some Vintage & Veteran cars currently go for.
A Vintage car is defined as one built from 1919 to 1929, while those pre-1919 are defined as Veteran. 1930 to WW2 are pre-war & WW2 onwards are post-war & so on. This system worked well in the 60s & 70s but nowadays with the majority of classic cars being post WW2, they tend to classify these later cars by decades. So a Sandman or Monaro can't 'turn into a vintage car'.
The recent (pre-GFC) explosion in collectible cars of all types, especially 70s muscle-type cars, has distorted prices markedly but they've now settled down a bit. So don't take the last 10 years as a good example of collector car pricing.
If you graph any car's value over time, they devalue greatly from new to 5 years old, then slow down from 5 to 15/20 years, at which point many cars reach junk value. I remember in the late 70s/early 80s when Falcon GTs & HK/T/G GTSV8s could be owned for not much money. I also remember very well in the 70s, early Holdens (even EH) were dumped in the streets deemed to be worthless. A bit like VN Commodores & EA Falcons currently.
When cars get to 30 years plus years of age, they begin to become sought after, some models more than others & their values vary depending on rarity & desirability, but even the plain jane cars bring good $$$ if they're in good condition. Most seem to peak at 35-40 years old, but again this is general guide. From then onwards they don't seem to drop markedly, because inflation holds them up. If you didn't pay stupid money currently for say a Monaro or Sandman, I can't see that figure dropping much, even in the long term. After that 'peak' any drop would be gradual & minimal, if at all. It should be more of a plateau, as long as the car is kept in good condition.
The recent boom was an exception, for several reasons, but once those prices come down out of the stratosphere (remembering it was only a few cars anyway) they won't drop, they will always hold their value. A true investment should always increase over the long term, but cars values won't do that.
Dr Terry
Last edited by Dr Terry; 03-06-2014 at 01:58 PM.
A very well thought out, and written in plain english explanation. Your experience is an invaluable tool on site's such as this Dr Terry.
Cheers.
Last edited by Robbo; 03-06-2014 at 04:17 PM.
"Proud To Be An Old Fart".
Definition of 'Investment'
An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.
BQZ
HK1837
Sorry to interupt, but can someone please explain to me why the XA GT RPO 83 is something special.
A carby and/or extractors!
Chrisp
It was using the bits that were going to be used on the phase 4, so is a de facto gtho. Well thats what the ford guys believe anyway.
Vans.... This is the 2nd time round the block, 40 years later! talk about turning back the clock!
Did you ever drive one? My mate had a black one he called Black Betty. It was the mid 80's and the car was in basically as delivered specification. It had 10" wheels on the back and the thing absolutely hammered. I don't think I ever drove a faster factory delivered Aussie car until LS1's and LS2's came around. It was the last Ford performance package - essentially a hangover from the series production cars. People want them as they are essentially the same thing as a 1973 "bathurst" spec XU-1, ie a homologation special. L34 is essentially the same thing too. After 1974 and before HDT arrived everything built was p!ssweak as there was no need to homologate engines anymore.
Plus if you ask guys who bought them new, those that got RPO's with imported 4V engines verses the softc$%k Aussie engines that some got was like stepping from a 308 to a 202 in performance. I know a guy who bought a XA GT sedan new, and so did his brother. One ended up with an RPO the other not. They were over 1.5 seconds different over the quarter when they tried them.
Last edited by HK1837; 04-06-2014 at 06:57 PM.
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