February 14, 2016

Opinion: 50's to 70's Classic Cars Will NOT Appreciate As Well Moving Forward

Classic and antique cars have been a fairly good investment in the past.    CNBC wrote last year that Classic cars outperform global stocks.   Though that data only looks at cars over $500k so its not your typical car buyer.   But the general trend still holds.    Cars have been a good investment if you buy the right ones.  

I don't think this is going to continue as the Baby Boomer generation ages.   For two key reasons.  First they are going to gradually age and pass away and their cars will enter the market.  
Second the younger generations don't have the same nostalgia as the Boomers do for 50's 60's and 70's cars.

Fortune magazine has already reported what they saw as  The bear market for classic American cars back in 2014.   That seemed to be mostly 50s cars but I assume it will start with the older cars and then progress into the 60's as people age.

If you're considering buying a 60's or 70's car now and consider it an investment then I'd certainly be wary about the future value longer term.     For investment purposes an alternative might be to buy 1980's cars now.  Cars from the 80's are less likely to have collector value today but as the Gen X people like myself age some the value is likely to increase.       Tricky part is finding the right cars now that will develop into classics.    Hagerty has a list of THE GENERATION X TOP 40/40/40: THE 1980S subtitled "40 Collector Cars, Built In the Past 40 Years, That Cost Under $40,000".    Those kinds of lists can give you some ideas, but any such investment is speculative in nature.   Its feasible that us Gen X won't start buying cars of our youth as we have mid life crisis and increased disposable income.


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