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Gary
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PostPosted: Sat Mar 10, 2018 9:50 am    Post subject: Re: will prices drop? Reply with quote

marklaken wrote:
crankbait09 wrote:
Not that the current prices of the classic beetles will stop me from purchasing one........but does anyone see the selling prices for the classic beetles ever dropping? Sure if we have an economy implosion again, they may. But I can only imagine they will keep going up and up as each year goes by.


I think Classic Cars in general are bad investments. If you can find those diamonds in the rough and buy them for a song, sure they are decent "investment", but the internet has spoiled a lot of that. In general, classic cars are no different than baseball cards and market pricing is based purely on supply and demand. So, in order to keep pricing strong on a fixed supply, demand needs to remain strong. So best raise your kids in VWs so we can sell our shit later on down the road.


Back when the Great Recession kicked into gear and the stock market was plummeting, I remember reading a financial article which detailed car guys investing in classic muscle cars. The prices were getting stupid ($300K+) with the buyers thinking the cars would be a great hedge and hold their value. Meanwhile, the market rebounded very nicely inside of 9 years while the value of the cars declined.

To further Mark's point, baseball cards aren't the worthwhile investment they once were. I remember when certain comic books were going for crazy stupid prices until that market fizzled. It's a crap shoot whether or not today's collectible item will be in demand in the future.
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PostPosted: Sat Mar 10, 2018 10:15 am    Post subject: Re: will prices drop? Reply with quote

two words :

Beanie Babies
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PostPosted: Sat Mar 10, 2018 12:55 pm    Post subject: Re: will prices drop? Reply with quote

calvinater wrote:
two words :

Beanie Babies


That's a great example, but I thought of another one related to the automobile world: The 1957 Thunderbird. Back in the 80s, those things were highly sought after and prices were ever increasing. I just looked up a valuation and they barely reach $50K today.
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PostPosted: Wed Mar 14, 2018 5:30 pm    Post subject: Re: will prices drop? Reply with quote

Gary wrote:
calvinater wrote:
two words :

Beanie Babies


That's a great example, but I thought of another one related to the automobile world: The 1957 Thunderbird. Back in the 80s, those things were highly sought after and prices were ever increasing. I just looked up a valuation and they barely reach $50K today.


$50K isn't bad
The people that wanted them are no longer driving or dead, just like the Model T.
VW Busses and Muscle cars will track the same path,
but Porsches because rich people are stupid about the Porsche Name like Ferrari & such will command exotic car prices matching the economics of rich people.
Cars are a hobby, or a tool, not really a investment, doesn't matter what list anybody makes up.
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PostPosted: Thu Mar 15, 2018 5:11 am    Post subject: Re: will prices drop? Reply with quote

Using the muscle car insane value increase years back and beanie babies are not a good comparison. When something gets a crazy value increase, there is usually an "adjustment" at some point... VW values had stayed pretty soft until the last few years and have finally caught up to where they should be....Still thinking buses are a bit inflated right now and I sure as hell would not spend $100K for one as an investment.
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PostPosted: Thu Mar 15, 2018 7:56 am    Post subject: Re: will prices drop? Reply with quote

Here's the thing....If you are basing an investment (cars count) on something volatile then there is the greatest potential for a massive gain or loss. The collector car flavor of the day in the 6 or more figure range is like some tech stocks.... I view VWs as mutual funds..... Laughing
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PostPosted: Thu Mar 15, 2018 10:53 am    Post subject: Re: will prices drop? Reply with quote

ach60 wrote:
Gary wrote:
calvinater wrote:
two words :

Beanie Babies


That's a great example, but I thought of another one related to the automobile world: The 1957 Thunderbird. Back in the 80s, those things were highly sought after and prices were ever increasing. I just looked up a valuation and they barely reach $50K today.


$50K isn't bad
The people that wanted them are no longer driving or dead, just like the Model T.
VW Busses and Muscle cars will track the same path,
but Porsches because rich people are stupid about the Porsche Name like Ferrari & such will command exotic car prices matching the economics of rich people.
Cars are a hobby, or a tool, not really a investment, doesn't matter what list anybody makes up.


Last week a friend was washing his 37 Ford woody at his home in Hermosa Beach and this guy stops by out of the blue just to talk about the woody. My friend never seen the guy before, anyroad this guy spots my friends 56 black T Bird in the garage and his 65 Mustang vert. Bang on the guy offers my friend 28K for the mustang and 62,500 for the 56 T-Bird......gone! Turns out my friend was going to put them up for sale anyway. BTW the 56 hadn't been driven in years and needed serious work to get running and stopping and the Mustang had some rust in the rockers. All disclosed mind you.
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PostPosted: Sat Mar 17, 2018 6:51 am    Post subject: Re: will prices drop? Reply with quote

IF the cars become radically overpriced then yes the prices will drop as people won't pay such prices.

A clean beetle such as my `70, any beetle outside of the very early & rare beetles, selling for $20K + might happen but such a radically overpriced car market won't hold.

If the reactions my beetle gets are an indication of how the public still feels about these cars, they are still very much loved and coveted by the public. People are starting to realize the value of these cars relative to new computer controlled cars.

I don't think they'll get to insane prices such as the muscle car market of the `80's & `90's. But they'll hold at a certain level as younger generations develop interest in them.
The damocles sword hanging over air-cooled is the ability to work on them, we all know they're not the same as modern cars, they require the ability to work on them. That & low-grade replacement parts and/or components which are no longer available such as vacuum advance modules.
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PostPosted: Sat Mar 17, 2018 7:22 am    Post subject: Re: will prices drop? Reply with quote

Helfen wrote:
ach60 wrote:
Gary wrote:
calvinater wrote:
two words :

Beanie Babies


That's a great example, but I thought of another one related to the automobile world: The 1957 Thunderbird. Back in the 80s, those things were highly sought after and prices were ever increasing. I just looked up a valuation and they barely reach $50K today.


$50K isn't bad
The people that wanted them are no longer driving or dead, just like the Model T.
VW Busses and Muscle cars will track the same path,
but Porsches because rich people are stupid about the Porsche Name like Ferrari & such will command exotic car prices matching the economics of rich people.
Cars are a hobby, or a tool, not really a investment, doesn't matter what list anybody makes up.


Last week a friend was washing his 37 Ford woody at his home in Hermosa Beach and this guy stops by out of the blue just to talk about the woody. My friend never seen the guy before, anyroad this guy spots my friends 56 black T Bird in the garage and his 65 Mustang vert. Bang on the guy offers my friend 28K for the mustang and 62,500 for the 56 T-Bird......gone! Turns out my friend was going to put them up for sale anyway. BTW the 56 hadn't been driven in years and needed serious work to get running and stopping and the Mustang had some rust in the rockers. All disclosed mind you.

This goes to prove that it pays to keep your Woody clean.
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Gary
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PostPosted: Sat Mar 17, 2018 7:26 am    Post subject: Re: will prices drop? Reply with quote

ach60 wrote:
Gary wrote:
calvinater wrote:
two words :

Beanie Babies


That's a great example, but I thought of another one related to the automobile world: The 1957 Thunderbird. Back in the 80s, those things were highly sought after and prices were ever increasing. I just looked up a valuation and they barely reach $50K today.


$50K isn't bad
The people that wanted them are no longer driving or dead, just like the Model T.


Based on inflation, let's assume a 1956 T-Bird was fetching $25,000 in 1985. In today's dollars, that car would be valued around $56,000 assuming it's correct, etc. What people don't do is deduct for maintenance, mileage, and insurance for that time, so the owner isn't breaking even. That money, invested in a growth stock fund, would be worth many times more.

ach60 wrote:
VW Busses and Muscle cars will track the same path,
but Porsches because rich people are stupid about the Porsche Name like Ferrari & such will command exotic car prices matching the economics of rich people.
Cars are a hobby, or a tool, not really a investment, doesn't matter what list anybody makes up.


I wouldn't be so certain VWs are going to track a specific path. Have you ever seen the stupid prices people have paid for vehicles of all makes at Barret-Jackson? The advantage other vehicle makes have over VWs is they licence manufacturers to reproduce parts whereas VW would rather its air-cooled legacy disappear. Attitudes about vehicle ownership and the type of vehicle people own and drive are changing. Alternative fueled vehicles are going to accelerate the decline of the gasoline powered engine. Who would want to own or buy a vehicle where the fuel needed to power it are no longer available? I'm not saying it's going to happen tomorrow, but it's going to happen.
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PostPosted: Sat Mar 17, 2018 10:22 am    Post subject: Re: will prices drop? Reply with quote

Gary wrote:
ach60 wrote:
Gary wrote:
calvinater wrote:
two words :

Beanie Babies


That's a great example, but I thought of another one related to the automobile world: The 1957 Thunderbird. Back in the 80s, those things were highly sought after and prices were ever increasing. I just looked up a valuation and they barely reach $50K today.


$50K isn't bad
The people that wanted them are no longer driving or dead, just like the Model T.


Based on inflation, let's assume a 1956 T-Bird was fetching $25,000 in 1985. In today's dollars, that car would be valued around $56,000 assuming it's correct, etc. What people don't do is deduct for maintenance, mileage, and insurance for that time, so the owner isn't breaking even. That money, invested in a growth stock fund, would be worth many times more.

ach60 wrote:
VW Busses and Muscle cars will track the same path,
but Porsches because rich people are stupid about the Porsche Name like Ferrari & such will command exotic car prices matching the economics of rich people.
Cars are a hobby, or a tool, not really a investment, doesn't matter what list anybody makes up.


I wouldn't be so certain VWs are going to track a specific path. Have you ever seen the stupid prices people have paid for vehicles of all makes at Barret-Jackson? The advantage other vehicle makes have over VWs is they licence manufacturers to reproduce parts whereas VW would rather its air-cooled legacy disappear. Attitudes about vehicle ownership and the type of vehicle people own and drive are changing. Alternative fueled vehicles are going to accelerate the decline of the gasoline powered engine. Who would want to own or buy a vehicle where the fuel needed to power it are no longer available? I'm not saying it's going to happen tomorrow, but it's going to happen.


With the exception of the T-Bird in the mid 80's which on average a #2+ car being around 35-45 K, your assessment is spot on.
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PostPosted: Sat Mar 17, 2018 12:22 pm    Post subject: Re: will prices drop? Reply with quote

skills@eurocarsplus wrote:
Can't usually have 2-3 cars in an apartment setting.


Image may have been reduced in size. Click image to view fullscreen.


Oh Crap, now you tell me.... Laughing



( of course, my apartment living daze were in the earlie 1980's...)
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PostPosted: Sun Apr 01, 2018 11:04 am    Post subject: Re: will prices drop? Reply with quote

Some general observations from a relatively new member (6 months this time).
Don’t be offended if this makes me a “student of the obvious!”
1) Many VWs of all types remain for sale on Samba for quite a while, even though updated regularly.
2) Unmolested, mostly original types show higher demand/less time for sale than modified cars/buses, as other posts have stated. Low light Ghias, for instance, rule this market.
3) I conclude that many members/buyers are searching for projects to restore, which is their passion or hobby. Some projects have been posted for many years!
4) Nicely restored original condition vehicles have a smaller market than projects requiring some restoration.
5) Original Class 1 &2 vehicles, if priced right, have a market, and cost less than the $ cost of a restoration
6) When trying to value a vehicle, it is useful to consult an online inflation index
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PostPosted: Sun Apr 01, 2018 10:58 pm    Post subject: Re: will prices drop? Reply with quote

^^^^
I think that is all accurate, nice summary
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PostPosted: Wed May 02, 2018 7:22 pm    Post subject: Re: will prices drop? Reply with quote

I realize it's an old thread, but it's been on my mind. I realize supply is drying up, but demand is drying up also. I just don't think old vw's or collector cars in general will beat inflation for the most part in the coming years. Might as well just enjoy the hobby aspect. spending the time and money on a physical object is just not the trend anymore with many of the younger generation, sure there are exceptions, but the trend is overwhelmingly toward digital"things"IE. Video games, social media. I just don't see many mellinials wanting to cruise around in a 57 Chevy and think it's cool. But oh well, I'll continue to invest in my 401k and horse around with old cars as my hobby
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PostPosted: Thu May 03, 2018 5:32 am    Post subject: Re: will prices drop? Reply with quote

Onceler wrote:
I realize supply is drying up, but demand is drying up also

Been watching the prices lately?
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I've restored a large number too, but I don't toot my horn quite as loud.


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maybe he just snapped cause his car sucked Wink
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PostPosted: Thu May 03, 2018 8:14 am    Post subject: Re: will prices drop? Reply with quote

Asking a $ price and getting that $ price are two different things.
Looking at the number of ads recycling in the Ghia category, along with the ones which are stagnant, i.e., not renewed ever, or stopped being renewed after reposting, indicate a relatively small pool of willing buyers vs. the 220+ sellers—a number which remains stable over time. I don’t know what the other categories of VW for sale show, but I’m guessing the trend is similar.
One category which retains its demand and relatively high pricing are low lites requiring some level of restoration. This is also the category most posted in the “WTB” ads.

I agree with the previous post regarding the dwindling interest in classic car hobbyist. In addition, there is the simultaneous and unfortunate decline in the number of craftsmen who possess the amazing skill sets required to take on a project car, as well as the appreciation of the dignity of manual, technical work.

BTW, young people don’t all spend their time playing video games or goofing off. Many are busting their hump to find stable employment and affordable housing. In addition many have no place to store and work on a car. Those who can choose also want to travel and have experiences and may never have had the interest in cars that some of the-shall we say-“more mature” population grew up with.
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PostPosted: Thu May 03, 2018 8:50 am    Post subject: Re: will prices drop? Reply with quote

Yes, asking price and selling is different but look at the trends lately, doesn't seem to be a price drop. Some pricing is people spending to much time watching the TV auctions.
bay window bus, super beetle, type 3, these VW's never garnered the interest or prices they command now.
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tasb wrote:
I've restored a large number too, but I don't toot my horn quite as loud.


sb001 wrote:
maybe he just snapped cause his car sucked Wink
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PostPosted: Thu May 03, 2018 9:06 am    Post subject: Re: will prices drop? Reply with quote

tims57LL wrote:
Looking at the number of ads recycling in the Ghia category, along with the ones which are stagnant, i.e., not renewed ever, or stopped being renewed after reposting, indicate a relatively small pool of willing buyers vs. the 220+ sellers—a number which remains stable over time.


I'm curious where you got "220+ sellers" and how you know that remains stable over time.
You are probably correct on the # of sellers being relatively stable but:
I took a look and there are 550 unique sellers in the Ghia Parts category right now. I am sure this varies quite a bit.

Edit: I realized you meant the # of car ads in the Ghia Vehicles section.
I realized you probably watch how many cars are for sale and are correct.

I'll leave this post in place since people might think the 550 # is interesting.
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PostPosted: Thu May 03, 2018 11:32 am    Post subject: Re: will prices drop? Reply with quote

wcfvw69 wrote:


I'm also firmly in the camp that original, unmolested, rust free VW's are going to be leading the pack in rising prices. With the extraordinary costs of body work/paint and other restoration costs, these VW's will continue to demand the highest price point.


Sweet, this is what I wanted to hear -- and mine's a one family owner as well, with all the original paperwork. I'm going to ask $20k!!
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