does anyone know why and when muscle car prices went nuts??

[Coupes and More]

Does anyone know WHY and WHEN muscle car prices went nuts?? : this is something that has interested me for quite sometime why did the cars prices go nuts its like someone flicked a switch and boom!!!! cars are stupidly over priced.

[GS608]

not too sure on this, but i heard it was to do with baby boomers (who are pretty well off these days) wanting the cars they owned as teens again, demand was higher than supply and once a few people started paying outrageous prices soon it became the norm.

[macca13]

That and the fact that once the prices started to climb the speculaters got into the act buying up cars in the hopes that they will jump in price.

[Silver Ghia]

Prices and demand have dropped since. So its also to do with the state of the economy.

The desirability of the muscle cars make them worth the money, so I wouldnt say the prices were 'outrageous' or 'stupidly overpriced'. But then I'm a baby boomer.

[Coupes and More]

when did the prices go nuts? and i personlly believe now is the time to buy them because no one has money to spare anymore.

[Falcon Coupe]

The price of restoring these cars is a contributing factor, to buy one for even 10k that needs a full restoration could easily owe you 70k+ by the end.

You are correct about buying now, i estimate a 40% drop has taken place since this time last year.

[Auslandau]

Why? Because a lot of people wanted them ......

When? 2003 and onwards .......

Over priced? Only to those that want one but cant afford one. Nope, the prices are spot on as this is what the market says.



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[4VCLEVO]

Originally Posted by HAMFIST

when did the prices go nuts? and i personlly believe now is the time to buy them because no one has money to spare anymore.

Not yet, the economy is only going to get worse, and when it does it will see muscle car prices drop as owners need to free up some cash and offload them.
I think the prices started to go nuts 6 to 7 years ago and the prices kept increasing untill recently. I personaly own a XAGT and hope the prices plumet, the less there worth the more of them I can own. I don't care about resale value, just love aussie muscle.

[Professor Farnsworth]

depends which cars we're talking about here. You can pick up xa-xc's pretty cheaply and in decent order, but if you're talking phase 3 xy gt's going for close to a million, then yes i'd have to agree they are rather over priced. Considering from memory they were only 4-5k new? with inflation we'll call that say 30k now. times that figure by 30 and that's what they're selling at auction for. Crazy crap really..

[GTPete]

The Muscle car boom is like the perfect storm.

I think the single biggest contributor to the price blowout is the internet.
Muscle cars and parts advertised on the net have a wider audience then any magazine or newspaper could ever offer. When you buy something off the net your now competing with the entire country / world to get what you want.
Then ad in cashed up baby boomers, genuine enthusiasts and investors chasing a quick dollar. Put them all in a limited run market for a muscle car or part that is no longer being reproduced and prices can only go one way.

HO prices were another trigger, the muscle car maket is no doubt riding on the rear bumper of every Phase 1,2, 3 and 4 that still survives today.
EBay has played its part as well, just about anything that came off a standard Falcon instantly became a "genuine GTHO part" this happened almost overnight and some parts doubled in price for no logical reason. :
Once part prices went thru the roof, restoration prices had to go up and prices for complete cars had to follow on.
I cant see the muscle car market changing anytime soon.

[Nikked]

Teenagers in the 70's who wanted the cars grew up into successfull buinessmen, they started collecting the cars, with owners having the ability of asking more and more.

[XABEBAGT]

2003 was the year it started to go a little crazy with pricing. In 2002 a mate of mine bought a phase 3 for $50k. I told him he was crazy to spend that much on car he would hardly drive. He sold it in 2004 for $130k and we all thought he had done well. It just went on from there. There were a few stupid prices tossed around at the 2003 GT Nationals in 2003 and it escalated from there to a peak last year. Prices are coming down now but we will never see real cheap prices again as long as supply is far outstripped by demand.
Cheers
Keith

[whynot]

http://en.wikipedia.org/wiki/Economic_bubble

Pretty much says it all ...

I don't think Phase 3 prices are going to collapse as hard, but, it certainly has elements of market mania about it.

[Road_Warrior]

Funny how the muscle car boom reflected the property boom pretty closely...

[v8capri8]

this is proberly going to upset some people but its just my opinion 1 rich guy liked a car so he bought it and got ripped off in the process word got out to both the sellers and buyers and boom all rich people wanted these cars and all the sellers knew they could make a rather large profit. the gtho phase 3 is an awsome car and a huge part of australian motoring history but there is no way i would shell out 500,000 plus for a car that doesnt even run in the 13s just think of the things you could build/get built for that kind of money you could easily have 5 cars that would out handle out perform and be an overall better package than a nearly 40 yr old falcon

[gtxb67]

the first part is that the xrgt was one of the first cars that had everything. v8, manual, limited number build, disc brakes and it was sporty. it not only had the power but was a relatively sporty car that ate all the previous conquerers at bathurst. that is one of the reason's the gt's will always be loved and remembered - they moved the motor industry up another notch or two for performance cars
the second part is that they were not necessarily practicle. insurance costs, fuel, hoon like image and especially in the coupe's case not much room for the kids in the back. most who could afford a new car had to choose the more practicle vehicle at the time time, so even some who could afford the gt or ho's went for the common car, though secretly wanting the big banger
over the last 10 years or so, through limited sales in comparison to the family variety versions, and everyone wanting one, the demand has become much greater. throw into that many have rusted to nothing or been crashed and they are more in demand than ever before. the people who could not afford one when new are now in their forties-sixties and having paid off the house, have some disposable income and all of a sudden many more want them than were produced. there was only 22,000 coupes sold new, and yet given the chance to buy one now for around $20,000 you would probably find many more buyers than 22,000. of course you cannot get one for $20,000 now so the very keen are willing to part with $35,000-$40,000 and so the prices go up

[Falcon Coupe]

Regarding Phase 3 prices being somewhat immune, does anyone know of any that have sold this year ?

[onfire]

Would it have anything to do with the fact they just dont build cars like they used to. I mean todays cars, even from the late 80s / early 90s onwards maybe be faster, more powerful and technically superior right across the board, but every man, boy and his dog has a modern muscle car that shakes, bakes and can rip a 1/4 mile in under 15 seconds.

But then again, who knows, it might simply come down to the hero factor, and in 30 years my generation will be sorting out a potentially classic BA GTs or VZ HSVs for some stupid amounts of cash.

[heath]

has ne one thought about the futrue, by buying cars now to put away for the next generation ?
have thought bout it quite a bit

[T3ts50]

Originally Posted by heath

has ne one thought about the futrue, by buying cars now to put away for the next generation ?
have thought bout it quite a bit

Probably 90% of people who bought a W427 or BF2 GT Cobra. You rarely see a W427 on the road, and all the GT Cobra's for sale on the net are well above the RRP.

[aussie muscle]

Originally Posted by Falcon Coupe

Regarding Phase 3 prices being somewhat immune, does anyone know of any that have sold this year ?

one sold last month for 200,000 if memory serves.

[Kamshaaft]

Muscle Cars got expensive just as I had almost saved up enough for one.

[HO 3]

Originally Posted by T3ts50

Probably 90% of people who bought a W427 or BF2 GT Cobra. You rarely see a W427 on the road, and all the GT Cobra's for sale on the net are well above the RRP.

Are any selling for above RRP though?....or do we have to wait for the current round of owners children to grow up and want them? :


Cheers Mick

[Kamshaaft]

There's no way I'd ever buy either, and I doubt my potential offspring would too.

[HO 3]

Originally Posted by HAMFIST

Does anyone know WHY and WHEN muscle car prices went nuts?? : this is something that has interested me for quite sometime why did the cars prices go nuts its like someone flicked a switch and boom!!!! cars are stupidly over priced.

Id say around 2002, a combination of cheap credit and rising house prices making people feel more wealthy.....the opposite is now happening of course and I would expect prices for bread and butter Aussie muscle cars to continue softening for some time.


Cheers Mick

[trippytaka]

Wheels Magazine 1996 started it all. Front Cover was an HK 327 and an XY GT

The article was all about what a great investment these cars make... that's the first time I ever noticed an increase in interest from the "mainstream".

Prices started spiking after 2000, when Australia hit a massive economic boom. Supply, demand, and a LOT of money floating around.

[trippytaka]

Originally Posted by Falcon Coupe

Regarding Phase 3 prices being somewhat immune, does anyone know of any that have sold this year ?

I've been watching the auctions and most seem to be passing in over the last 6 months.

[4Vman]

My dad was offered a Phase 3 in 1984 for 22K..... 5 times its new value only 13 years after it was released..
2 years later in 1986 i was offered a nice reef green 1970 XWGT for 12k, still 3 times its new value only 16 years down the track.
Im not sure Factory Musclecars have ever been "bargains" relative to their new sale price.
In todays terms that would put an ELGT @ $200k... NO CHANCE......

[HO 3]

Originally Posted by 4Vman

My dad was offered a Phase 3 in 1984 for 22K..... 5 times its new value only 13 years after it was released..
2 years later in 1986 i was offered a nice reef green 1970 XWGT for 12k, still 3 times its new value only 16 years down the track.
Im not sure Factory Musclecars have ever been "bargains" relative to their new sale price.
In todays terms that would put an ELGT @ $200k... NO CHANCE......

That is so true, some muscle cars never were relatively cheap.....I think what we are seeing at the moment is after riding the wave of a huge price boom muscle cars that I affectionately refer to as the 'Cling Ons of factory muscle cars' ie not Series Production hommologation specials or closely related, are simply coming back to more realistic prices as money tightens.


Cheers Mick

[Kamshaaft]

Originally Posted by 4Vman

My dad was offered a Phase 3 in 1984 for 22K..... 5 times its new value only 13 years after it was released..
2 years later in 1986 i was offered a nice reef green 1970 XWGT for 12k, still 3 times its new value only 16 years down the track.
Im not sure Factory Musclecars have ever been "bargains" relative to their new sale price.
In todays terms that would put an ELGT @ $200k... NO CHANCE......

Didn't it hold a record up until about 2005 (Pagani Zonda) for being the only car to never dip below original retail value, or was that just a blue lie?