Corvette prices over the last 3 decades have a proven analytical track record that can be illustrated. I’ve put it in a graph that has come from actual sales and can be tracked by decades of data. There were many highs and lows during this 30 year span, ie: recessions, wars, high interest, low interest, many elections, October ‘87 stock market melt down, ‘89/’91 classic & sports car boom/bust, end of the cold war, tech market boom/bust, 9/11, mortgage boom/bust, an impending global financial zero hour, and now the September ‘08 Wall Street/Big Three meltdown, and the Washington bailout. Time will only tell what the next decade has in mind for classic car and in particular Corvette prices, as the masses continue to pursue their needs over their desires and with any reward there is a degree of risk. The classic Corvette is a proven investment for both pocketbook and garage, take advantage of the current lull in the Corvette price storm and don’t get left behind this time around. Check out an example of Corvette Prices over the last 3 decades below:
*source: figures are based on personal/internal sales data collected by Terry Michaelis & ProTeam Corvette Sales and are specifically based on a 1967 Corvette Convertible 427-435, #1 condition, Red/Black convertible. NCRS or Bloomington Gold with factory documentation.
** Data is from actual sales made by author and author has knowledge of other extremes but chose to eliminate the extreme highs from certain high profile auctions and the many 1967’s that were sold in 2008 for much more, ie: $245,000.00 to over $300,000.00. Using $200,000.00 as the baseline number will leave much room for good appreciation over the next decade.
*** Prior to 1978 the older Corvette was not considered a collectible but was a desirable sports car that, in many times, was used year round in all climates.
**** Why 1978? A) The rage and over editorialization of the Indy Pace car creating awareness and desirability of all Corvettes, B)Â Formation of the (NCRS) National Corvette Restorers Society in 1974, C) The beginning of the Bloomington Gold show, D) The many (NCCC) National Council of Corvette Clubs, E) The growth of the Corvette after market parts business that made discontinued parts available.
***** The above example is of one particular Corvette that exemplifies the over all appreciation of most all classic Corvettes, especially the legitimate solid lifter cars, ie: L88’s, 365’s, 425’s, fuelies, LT1’s, and split window coupes. The appreciation curves are very similar to the chart above with the exception of the L88 which simply blows these numbers away. The author will attempt to graph other examples from actual sales records in the near future. For now… enjoy!
author: Terry Michaelis
email comment to terry@proteamcorvette.com
Scottsdale, Az. — Turns out the guy driving that 1967 Shelby GT500 as an enthusiast has the side benefit of being a smart investor. Leading into the Barrett-Jackson Auction Company’s inaugural event in Las Vegas, the collector car auction house reported that many of the top cars sold have performed better in value than the stock market and gold over the last 10 years.
“Though most people buy a collector car to enjoy, they have also proven to be one of the soundest investment vehicles in the global marketplace over the past 10 years,” said Craig Jackson, Chairman and CEO of Barrett-Jackson. “It’s rare that a hobby and someone’s passion has the potential of being a great investment.”
The Barrett-Jackson mini-index (see chart below) was created in 2003 and consists of representative cars that reflect the diversity seen in the collector car market. These cars span from 1957 to 1970 and are primarily European and American sports cars and U.S. muscle cars. The cars used in the index are the 1957 Thunderbird, 1967 Jaguar XKE, 1967 Shelby GT500, 1970 Camaro Z/28, 1970 AAR ‘Cuda, 1965 Austin Healy MK III and a 1967 Corvette 427/435. According to the data released today, the value of the cars in the Barrett-Jackson mini-index grew by a compounded annual growth rate of 16 percent from Q1 1998 to Q1 2008, which included economic and political upheaval stemming from major events ranging from the Invasion of Iraq, the Dot Com bubble crash, and 9/11. During that same period, the Dow Jones Industrial Average (DJIA) grew a compounded 5 percent annually while the S&P 500 Index grew 4 percent. The price of gold grew a compounded 11 percent in the same period.
“These numbers paint a vivid picture of the intrinsic value and growth of the collector car market,” said Steve Davis, President of Barrett-Jackson. “A financial analyst will tell you that every market has year-to-year fluctuations, but that the true measure is performance over time. We’re proud to be part of that great performance of the collector car market and we believe our expansion this week into Las Vegas will reinforce the view that collector cars are not only our consumers’ passion but offer the potential of providing long-term value. Most enthusiasts like me take great solace that as a car collector, we own tangible assets that have not only stood up to the test of time in value, but can also be driven and enjoyed.”
“With all the turbulence in the current capital markets, we are pleased with our key economic indicators for this event. Tickets sales have been strong, our Las Vegas consignment slots were sold out a month ago, and bidder registration has exceeded our expectations. Bidder interest and registration have not waned despite the negative news coming from Wall Street.”
About The Barrett-Jackson Auction Company:Â Established in 1971 and headquartered in Scottsdale, Ariz., Barrett-Jackson specializes in providing products and services to classic and collector car owners, astute collectors and automotive enthusiasts around the world. The company produces the “World’s Greatest Collector Car Eventsâ„¢” in Scottsdale, Palm Beach, Fla. and Las Vegas. For more information about Barrett-Jackson, visit www.barrett-jackson.com or call (480) 421-6694.
Media Contact:Â Scott Black at sblack@tprm-usa.com or (214) 566-6458 (www.tprm-usa.com)
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This is 2008 (not 2006 or 2007) and little in the news provide for anything euphoric, ie: the fuel mpg fracas, home mortgage fiasco, short sales, grain prices, oil dependency, the upcoming election, the Iraq war, US dollar devaluation, chicken little, and the media… pick your favorite fairy tale, etc.
So do we put off the joy and fun of owning a Corvette? Do we sell the Corvette we currently own? NO!! Because once we get these issues behind us, the new buyer and current Corvette owners will have had 2 or 3 years of cheap fun and you’ll probably do better than break even which is much better than you’ll ever do on your new microwave, plasma TV, washer/dryer, refrigerator, Cadillac, or SUV… Although I do enjoy those after 6:00pm moments of cold beer that I pull out of my depreciating fridge but I call that “The Fun Factor!”
fact one: Gas is cheap compared to the $3.00 to $5.00 12/16 ounce bottle of water that we purchase at sporting and other special events.
fact two: Do you hear the sucking sound of Corvettes leaving North America? Americans love their Corvette but so does the rest of the world and dozens are leaving every month due to the deep discount that foreigners get when buying US dollars, US products, and US companies which means every year there will be fewer Corvettes in North America and the remaining will plain and simply cost more due to supply and demand.
Who ‘da thought that anyone could afford to buy Anheiser Busch? Well, certain foreign companies would get a 30 to 40 percent discount on price offered due to the US dollar devaluation.
Buy… if that purchase does not stretch your rubber band and you plan on enjoying that purchase for two to three years.
Sell… If you need the money or have a better place to put that money but do not wait too long as the US economy will probably get worse before it gets better.
Hold… see above and do not forget to figure in the”fun factor!” I will!
comments? email: terry@proteamcorvette.com