Jonathan Welsh, a contributor to the Wall Street Journal‘s “Driver’s Seat” blog, wrote this weekend about the impact the economic downturn has had on prices in the American collector car market.
“…this is a bargain-hunter’s market for fans of American muscle cars or other models that have yet to take off,” Welsh wrote. “Cars like the Pontiac GTO, Ford Mustang Boss and Plymouth Hemi ‘Cuda -¦ cracked the million-dollar mark a few years ago as demand -¦ reached new heights. But when the economy sagged, prices for such cars fell like stones, driven by the same supply-and-demand rules we learned in Introduction to Economics.”
Welsh cautioned readers not to collect cars simply based on potential future value, but instead because they like the cars they’re buying.
“There would be a lot less heartbreak in car collecting if people would just buy what they like and stop trying to turn old cars into investments,” he wrote. “I cringe every time I hear the word ‘investment’ in a discussion about cars because you are almost always better off buying stock.”
Read Welsh’s complete blog post here