Musclecars as investments

What $30,000 can buy you today

What $30,000 can buy you today

While most of the population here in the United States, including myself have been brainwashed into thinking investments involve giving our hard earned money to a “professional” to find the right type of investment for “our” unique situation.  Unfortunately, the unique situation everyone has is all treated the same by these guys.  All financial investments are done with the reality that whether you gain or lose money, the professional still gets paid.  Bottom line is whether it is my broker or yours, unless you start out as a multi-millionaire….your broker makes money and drives a better car than you do.  And he is paying for it with money from you and a hundred other you’s.  There may be a difference in the individual stocks you have in your portfolio, but you are not treated differently than the next guy.  You are the cash cow.  And you pay.  You pay to buy, you pay to sell and if you profit you pay some more.

Because I am not able to invest 6 to 8 hours a day into the financial markets every day, I was one of the idiots who bought mutual funds and left it to the brain’s in New York to pick what stocks to buy…and because of their greed, I lost 70% of my money.  So much for them being smarter than me.  Actually they are smarter since I lost and they still got paid by me while giving my money away. 

Real Estate is the other investment high up on the list for ways to get rich.  When home values are losing money and people are losing their homes they have, even the people who invest in rental properties are having trouble finding people who can pay the rent.  If their are no jobs then there is no one to buy a home or to rent one from you.  Your real estate will be worth more over time eventually but for now can you pay the mortgage for the next year or two until the economy straightens out?   If you have the savings already to do so then real estate is probably still an excellent investment.

But for the vast majority of America whose nest-egg is less than $100,000 the choices for investing become limited.  Enter the Muscle Car.  There are lots of quality cars available that can be in really good condition that will run you around $25,000 to 45,000 and these cars will only become more valuable over time when they continue to get older and rarer. The choice of what model of car to purchase should be decided by you based on what you like and what you want to have sitting in your garage, but unless you are very mechanically inclined my advice would be to stay away from cars with multiple carburetors and early fuel injection systems.  Stick with cars that would tend to be more general appeal and more popular instead of the rare, very limited production models.  GTO, Chevelle, Camaro, Mustang, Torino, GS, GSX, GTX, Road Runner, Charger, Coronet, Super Bee, Cuda, Challenger, Cyclone, and the list goes on.  Every one of these cars would fit into the under 60,000 range depending on what engine they had when they left the factory.  You need to make sure the engine in the vehicle is what was the original size when it was built, preferably the original engine if you want maximum return for your investment.  Give a professional classic car dealer in your area a visit before you buy something if you do not know how to verify original engine numbers and such because nothing is worse than spending 50 grand and finding out your SS454 Chevelle is actually a 307 “clone” car that will never be worth more than 25 grand.  You may as well give my broker a call at that point.

The muscle car investment has added benefits as well.  You can actually get in and drive your vehicle and get some joy from it when you cruise through the town on a cool afternoon and the sun is shining.  Nobody I know of can say they take their certificate of deposit and get any enjoyment out of it until the day it matures and they get to cash it in.  Just do not expect to be able to drive the vehicle every day or to take it out when it’s rainy or worse yet snowing.  These vehicles need to be driven occasionally but not often. Wear and tear, even normal use is the way they depreciate in value.  So the more pristine the more value.

Some areas of the U.S. are better as buyer’s areas and some areas are better as seller’s areas.  The west and southern states are definitely better for the buyer’s as there are more vehicles that have survived the years fairly intact.  The upper Midwest and upper east coast are seller’s areas due to the fact that harsh winters take their toll on all vehicles and there are fewer to choose from.  Ideally as a result a Chevelle may sell for 30 grand in Florida or Texas and the same car can be trailered or trucked to Chicago and sell for 40.  And to be honest it only costs about 2 thousand dollars to have the car shipped so the extra 8 grand is just in finding the right buyer.  E-Bay is a classic success story for selling these vehicles because with the advent of the Internet you can be located in Sarasota, Florida and still get in front of that buyer in Bismark, North Dakota who has the desire to buy the car.  The problem with E-bay is most cars are for sale through individuals not dealers so be careful when checking out vehicles for originality.

One day I myself hope to put my knowledge to use and start my own dealership in these vehicles.  Until then anyone who wants to ask me questions about these cars or gain some of my knowledge can do so by contacting me here, and even if you just want to say hello, this is where I am.


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One Response to “Musclecars as investments”

  1. Musclecars as investments Says:

    […] Original post by americanmusclecar […]

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