Classic cars have been, still are and likely will remain a passion for a great number of automobile enthusiasts. The reasons for their hobby are varied. Some owners enjoy the design of specific models, others prefer certain model years for reasons of nostalgia while some, although just a select few, collect these cars because they have value.
Classic cars have been popular for more than half a century, although they have definitely increased in popularity the last few decades. Classic car shows abound, with dozens, hundreds or even thousands of classic car enthusiasts gathering at fairgrounds, parking lots or anywhere with space enough to host them to show off their vehicles, compete for awards (such as “Best in Show”) and basically talk shop.
The idea of purchasing a classic car as a future investment is not common among these classic car owners, however, but it does exist. Many of these cars, once they have been restored, have values several times higher than when they were new. Some cases classic cars are selling for hundreds of thousands of dollars because of their scarcity, while others sell for a few thousand dollars because although restored they are fairly common, meaning they retain their popularity and are not difficult to find and restore.
For the most part, however, these classic car collectors choose vehicles that hold special significance for them. Perhaps it was a favorite vehicle from their childhood, or the same car their grandfather owner. They buy them, restore and cherish them. The idea of selling their classic car at some future date “when the price is right” never crosses their mind because they love their car. It is something closer to a favorite pet, not an inanimate object. The very idea of selling it one day is abhorrent to them.
So, regardless of why they buy their classic cars it is a good bet that they plan to keep it for a long, long time.
Finally some good news for car buyers who still might not be able to afford a new car: Used car prices are declining.
When the Great Recession began four years ago banks started tightening their rules about lending money. They increased the requirements for people seeking new loans, especially those who wanted to borrow money to buy a new car. This meant, essentially, that only people who could afford a new car, didn’t need to borrow money to buy it, could actually borrow money to buy a new car.
Because they couldn’t get a loan for a new car those in the market for a replacement vehicle began turning to the used car market for their “new” car. this sudden increase in demand caused the prices of used cars to increase tremendously. Prices for used cars shot up and have stayed there for the past few years, but that curve seems to be heading in a different direction as used car prices finally decline.
Buyers are turning up new car lots again, armed with new automobile loans issued by banks which are finally willing to loan money to people who actually need it to buy a new car. This is good news for the Big Three automobile manufacturers because it means the U.S auto market is seeing a surge in sales. However, used car dealers are no doubt decrying the loss of all the new customers they have been seeing quite regularly for at least the past 36 months or so. It also means they need to lower their prices to attract “new” buyers.
For you, the person who may or may not need a “new” car, the news is good on both sides. It is good for you if you want a used car because prices are finally coming down. It is also good news if you are buying a new car because it means you can finally walk into your local bank with confidence they might actually be able to help you.
Think of it as a win-win situation and go out and get yourself a “new” car.
Imagine the surprise of venture capitalist Jason Schultz when the Lamborghini Aventador he had out for a test drive suddenly burst into flames. Fortunately, Schultz escaped the blase unharmed, but unfortunately, the Aventador was a total loss.
Schultz had been test driving the vehicle, considering a purchase of the $376,000 Lamborghini, the first in a new model series, when he noticed flames coming from the left rear wheel well. Police are investigating the fire and so is Lamborghini, but so far no new information has been released.
When it comes to small cars consumer are decidedly fickle. on the one hand they want small cars because they are more economical and cost less to drive. They also prefer small cars in heavily congest areas and tight parking lots.
But when they want power and performance they are more likely to reach for something with a little more heft, regardless of the added expense that comes with reduced mileage. They like big cars because, they’re big. That counts for something with some folks.
Of course, sometimes small if, well, too small. Like this Peel P50 Jeremy Clarkson takes for a spin through downtown London, and straight into his Top Gear office at the BBC.