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Old Jan 31, 2008 | 09:19 AM
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matthewdavid's Avatar
matthewdavid
Joined: Jun 2007
Posts: 29
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From: Atlanta, GA
Default Re: Will it rise or will it fall?

Cars are almost NEVER a good investment. Do the math on any of the high auction cars, and you'll see that the increase over the original sales price is usually just the rate of inflation (3% or so). Take the 1978 Indy Pace Car Corvette for example. Speculators horded those cars, put them up on blocks expecting to make a mint in years to come. To date, one can still be had for around $30,000 with no miles. Considering these folks paid $25,000 in 1978, that's not such a good investment. Reasonably, the most you can expect is to stay at the rate of inflation, and you're doing good if the car maintains its original sticker (or in the case of the SRT, it's original sales price) during the short term. Speaking of Fiero, there were only 2,000 Indys made with a sticker around $14,000. You can find them with virtually no miles and meticulously maintained for around $10,000. Thus, if it ever climbs back to its original sticker, all will be well for those owners but definitely not a money maker. As for the Prowler, considering there are 11,000 units, prices are holding farily well. People that bought those cars seem to want to hold them, and that plays a huge part in dictating prices (i.e. supply and demand). I think mint SRTs will do better than the Prowler in the long run due to fewer units and the fact that so many are trading hands - multiple owners wreck havoc on a car, mechanically and cosmetically. Thus, there will be fewer pristine examples left. Long story short, never buy a car for an investment, but do buy for style, performance, uniqueness, and preference, all which lend to the car's collectibility.

Matthew
 
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