Is vintage car collecting a good investment?

http://articles.moneycentral.msn.com/Inves....aspx?GT1=10421

A 4-wheeled investment vehicle
Building a garage -- and a portfolio -- full of mint-condition cars is a lovely pastime, but can you make money doing it?

By SmartMoney
Dick Messer's passion for automobiles was often misunderstood, especially at home.

When, back in 1978, he bought a Siata 208S Spider for $15,000, for example, his father didn't talk to him for five years.

"At dinner, he would literally turn to my sister and say, 'Tell Richard to pass me the salt,'" Messer says. "You can't believe the friction I got from my family for spending so much on a car."

Today, that car is worth $700,000. Together with the 20 or so other cars in Messer's garage, which he estimates have cost him roughly $100,000 to purchase over the years, his collection is worth around $2 million.

"My sister is jealous now," he says. "She's looking at my car collection and saying, 'There's your retirement -- you've got nothing to worry about.'"

The collection isn't for sale, but Messer's expertise -- he is now the director of the Petersen Automotive Museum in Los Angeles -- is sought by car enthusiasts and investors alike. "I get a lot of calls from wealth managers who've started to add collector vehicles to the portfolios of their wealthy clients," Messer says.

That's not a surprise, given the jump in value collectible cars have seen over the past few years. Muscle cars -- high-performance American cars from the late 1960s and early 1970s -- for example, have surged in popularity thanks to the growing number of baby boomers who have always dreamed of driving the cars once owned by their fathers and now have the money to buy them.

"Just a couple of years ago, you could buy a 1969 Z-28 Camaro in really nice condition for $40,000; now that same car is probably $60,000," says John DiPietro, the road-test editor for auto Web site Edmunds.com.

At this year's Pebble Beach Concours d'Elegance car show, held annually on the Monterey Peninsula of California, some rare collectibles were auctioned off at nearly double the prices they fetched just several years ago. Auction house Christie's sold a 1936 Auburn Speedster for $423,500, which two years ago had been sold for $250,000.

"That's a big jump," says Rupert Banner, the head of the international car department for the Christie's. "The market today is certainly seeing some spectacular growth."

Earlier this year, auction house RM Auctions sold a 1962 Ferrari Testa Rossa raced by Phil Hill at Le Mans that year for $9.3 million. The seller had purchased the car five years earlier for $6.5 million.

To be sure, car collecting can be a fun hobby if you have a passion for vintage wheels, but you shouldn't by any means consider it part of your retirement-saving strategy or even bank on making a profit. That said, assembling the right car portfolio -- collectible cars made at least 25 years ago in limited production and good condition -- could add to your enjoyment and maybe even your net worth. Here's what you need to know.

Market research
As with investing, make sure you know what you're buying. Start your research with a local car club, then attend a car show or auction and talk to the owners and industry insiders.

"Attending an auction is like going to school," says Terry Lobzun, a spokesman for RM Auctions. Learn as much about the car you're interested in, and don't forget to ask about maintenance and insurance.

 

:angry: Back in 1971 (H.S.Graduation) I bought me a two year old, 1969 Plymouth RoadRunner, metallic silver, 383 cu. in., 4-speed, hi-back buckets, Hurst shifter, Posi-traction tires, 3.91 rear axle gear ratio with less than 16,000 miles for $2,500............. Sold it two years later for $1,500 !!

I think today it may be worth upward of $50K ??

OH, those were the days............. the late 60's early 70's........ GM, Chrysler, Ford, even AMC !!
The days when a kid in High School could actually afford a decent, used car that he could afford to buy and afford to keep running........

[attachmentid=11737]

 

<div class='quotetop'>QUOTE(viking31 @ Oct 1 2007, 04:00 PM) [snapback]519943[/snapback]</div>

This is true !!
I used to "restore" vehicles and until you really do one you simply cannot believe how much time, work, energy, and so many "can-of-worms" you open up during every step of the restore. And NOW, trying to get "Genuine Factory Parts" (NOS- New Old Stock) is much different than back in the 70's and 80's. NOW you find nothing but JUNK Taiwan knock offs, flimsy sheet metal that doesn't fit right, etc. and just as you mentioned, unless you have an Air Conditioned storage facility and keep adding gas additives to prevent gumming up, etc. the vehicle will slowly disintegrate.......... :angry:

 

<div class='quotetop'>QUOTE(hyo silver @ Oct 1 2007, 04:52 PM) [snapback]519965[/snapback]</div>

At 55 years old, now I get a sore back that lasts two days, just changing oil & filter on our new Prius.... include rotating the tires, my sore back last three days :lol: !!

Vehicle restoration for ME now is just a thing of the past..........