Nothing ventured, nothing gained. Without revealing details, I am going to undertake an endeavor that, in all honesty, has almost a zero probability of success, but also has no downside, at least none that I can see. No, I’m not talking about buying Mega Millions tickets because those are not free, although they are not expensive, either. Wish me luck.
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This Hagerty article is titled, “5 classics posting the biggest gains in 2022.” I guess it’s bad form to point out that 2022 is only about halfway done.
Here is an interesting passage from the piece: “Some rising stars in this latest refresh illustrated a rubber-band effect in full swing: With the average prices of more popular collector cars still riding sky-high, some enthusiasts and savvy investors turn to parallel alternatives, inflating values of models that weren’t exactly hot-ticket items prior to the pricing surge of their more popular siblings.”
I think you would enjoy the reading the article so I won’t list all five cars. I will tell you that the biggest gainer, according to Hagerty, was the 1977-81 Pontiac Firebird Trans Am Special Edition.
The “rubber-band” effect noted by Hagerty is simple economics. When the price of a good increases, prices of substitute goods also increase. The definition of “substitute” isn’t always clear, however.
I will quickly remind everyone that I believe for the vast majority of people and the vast majority of cars, buying a “collector” automobile should be more of an investment in the quality of life than a financial investment. Of course, no paradigm applies to all situations.
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My wonderful wife sent me this link to a piece that includes this picture:
This Top Gear article is about the Ferrari 296 GT3, the company’s 2023 GT race car. I’m sure a street-legal version would have quite the demand even if it’s not a substitute for anything else.
#NothingToLoseSaturday
#BuyingACollectorCar
#Ferrari296GT3
#somanyCARSjustonelife
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My grand daughter, the wanna-be 8 year old, Ferrari driver, would be begging for one in red.
Good luck with your unnamed endeavor. Stay safe and enjoy the experience.
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Solid economics theory, for sure!
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Is the phrase “solid economics theory” an oxymoron? 🙂
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🙂
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Things of passion have no price tag. I forget how much Bezos spent on the 10,000 year clock or David Rubenstein on a copy of the Declaration of Independence. I once found a copy of a first edition of Graham and Dodd’s “Security Analysis” in my college’s deaccession stack. I bought it for a dollar and later sold it for $1100 when times were tough after my divorce. As a graduate of my college and an econ major, if I had the money, I’d pay ten times that to get it back.
I just got a new pair of speakers that are twice as expensive as the ones I have. I’m not sure they will sound twice as good, but the build quality makes them lust worthy.
As for collectable cars, it’s not about going from A to B. It’s about how you feel in that car when you’re going from A to B. And you can’t put a price on what it is about.
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Many thanks, Doc. Really liked this passage: “As for collectable cars, it’s not about going from A to B. It’s about how you feel in that car when you’re going from A to B. And you can’t put a price on what it is about.”
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