The Crazy Price of Collector Cars

Collector car prices have gotten way out of hand.  I realize this is nothing new - people have been speculating in the collector car market for years, but seeing some of the mundane iron roll across the auction block for prices in the high five / low six figures leaves me scratching my head.  Here are some examples of what I mean:

• E30 BMWs routinely go for $50,000, M3s for double that amount

• Ford Trucks have sold for as much as $97,500

• Japanese cars from the 1990s sell for over $100,000

All of these cars are pristine, low mileage, or limited run cars.  People collect other objects like art, wine, or antiques, so cars shouldn’t be any different. It’s nobody’s business what you buy.  Nothing wrong with collecting something as a hobby or because you have an interest in it.  

What gets me is the rampant speculation.  There is no measure of value.  Some of these cars trade hands regularly, and double their value every few years. It’s almost like the price paid is a bragging right or a way to keep score with your money.  That’s fine if you have the means, but it bothers me for two reasons:  

First, skyrocketing prices put these cars out of reach for most people.  If you’re not independently wealthy, the only way to buy something is by spending an inheritance, taking out a loan, or robbing your kid’s college fund.  It seems the most common collector car buyer is someone who is newly retired and who has either downsized to a smaller house, or has extra retirement money.  Go to any auto auction and you’ll see the early dinner crowd buying up the cars of their youth, gladly paying beachfront property money for the Hemi powered Plymouth they wanted in high school.  

Second, the prices make it hard to drive these cars on the street.  No one wants to risk putting a dent in their original Plymouth Barracuda or scratch the paint on their Chevelle 396 “tribute car” that they just bought for $80,000.  You’ll never see a pro-street anything on the street, let alone the parking lot at a local store.  These cars arrive in an enclosed trailer, under the dark of night, with more secrecy than the Stealth bomber. 

As a kid, a neighbor had a black 1957 Chevy Bel Air parked in their garage. A friend’s mom daily drove a mint green 1969 Pontiac GTO.  The local import garage usually had a Jaguar E-type or XJ-S in for service.  And one of my dad’s partners had a Lotus Europa.  These cars left their imprint on me and are a big part of why I’m into cars today.  

There have been stories over the past few years about how the younger generations are no longer interested in cars as anything other than a mode of transport.  If there is a problem, I think it’s more due to a lack of exposure, or a lack of money, than waning interest.