I’m often amazed by the amount of money certain collector cars go for at auction. Not all classics by any means, but if it’s exotic, fast and sporty looking, the sky seems to be the limit. Other cars, equally appealing to me, actually cost less now, if you factor in inflation, than they did when they came off the line. And they still need work. But buy the right car, wait a few months and flip it, and it seems you’re in the money. If you had the money to buy it in the first place.
I’m not the only one that’s noticed this. I read an excellent article by Rick Carey over at Sports Car Digest earlier this week that talks about whether the collector car boom is about to go bust. That might not be a bad thing. Sure, a few people might lose their shirts, but they’re likely to be the ones that buy to invest, not because they really love something. And if prices come down, maybe more people that really love something will get a chance to buy it.