Muscle Cars Value in these Economic Times
October 10th, 2008 adminMuscle Cars Value in these Economic Times
So do Muscle Cars Hold their Value? Depends upon who you ask!!
Old muscle cars have seen a huge increase in sales, and prices, over the last ten years. But, “By and large, the boom in muscle car prices was the result of nostalgic shoppers, laying out significant – but not exorbitant – sums for the dreamcars of their youths,” they write. But “with financial ‘gurus’ like Jim Cramer telling punters to cash-out all their investments, we can expect a glut of reasonable condition cars on the market, as folks look to pick up more money before the storm.” And with more families hording cash in anticipation of a recession that may have already begun, TTAC speculates, “we will see something on the order of a 60 percent drop in the market values of cars like Camaros, Mustangs, Chevelles, and Pontiacs.”
“Auction results are starting to show signs of impending weakness. A quick look through the results of RM’s Monterey sale in the latest Hemmings Muscle Machines shows most of the cars selling at or below recent average sale values, and that event took place before the black-hole economy had really hit the news.”
In a related story and different opinion:
Muscle cars are fast, but do they hold there value in todays economic time?
Fritz Wilke, Mustang brand manager, says yes–partly because people who buy performance cars like Mustang or Dodge’s Challenger and the forthcoming Camaro, for that matter, are buying them as second vehicles for fun and thrills. These consumers are a lot more interested in HP than MPG.
“One thing we have seen in that segment, and we have done clinics on this, is that [the market for] high-end sports cars and specialty vehicles isn’t as sensitive to fuel prices and fuel efficiency,” he says, adding that fuel efficiency won’t be a central part of the marketing message for the new car, which comes out next spring. “We tell customers it’s not about fuel efficiency it’s about the promise the brand delivers: fast, fun and affordable.”
Wilke says that the addition to the specialty market of Chevy Camaro and the new Nissan Z next year, and the Challenger, which went on sale last month, won’t impinge on Mustang’s share of the market, but will generate interest in the segment. “We are actually excited to welcome the main competition back into the segment,” he says.
If there is a subsidiary fuel-economy message for Mustang, it is likely to be focused on the V6 version of the car, which Wilke says garners best-in-class fuel economy. “The V6 is a little different customer, for whom Mustang tends to be more of a daily-use vehicle, and would be used more often than the Mustang GT.”
He added that there will not be a bifurcated message, with different versions of the car getting different campaigns appealing to commuters versus weekend drivers. “Mustang has one soul and comes in different speeds for every need.”
While Wilke would not divulge marketing plans, he allowed that a traditional approach for Mustang is to do event and direct efforts through independent Mustang-enthusiast clubs. “They host multiple events every weekend, April through October; it’s one great thing we have with this brand that other brands can’t do.”
Todd Turner, president of Car Concepts in California, notes that Dodge’s Challenger is selling briskly. “I think there’s still passion for these kinds of cars. No, it won’t be big business model, but it’s important to participate in. But it has to be a home run.” He agrees that fuel efficiency isn’t that important within the segment. “It’s not an issue–and Mustang gets 25 to 30 miles per gallon, so it’s not bad.”
So it comes down really to your own personal interest in your Muscle Car. Is it for fun and enjoyment or an Investment? Depending upon your reasons, also answers this difficult question.
Related posts
Tags: Muscle Cars, Muscle Cars Investment, Muscle Cars Value
