Has the world gone mad? Car prices...

[Bill Pritchard]

You wanna talk crazy money for a 1970 Chevelle? How about $165K for a bench seat, column automatic 350hp 396?

https://www.barrett-jackson.com/Even...-SS-396-244568

[frankk]

Has the world gone mad? Already there and coming back the other way

[RPOLS3]

Originally Posted by Bill Pritchard

You wanna talk crazy money for a 1970 Chevelle? How about $165K for a bench seat, column automatic 350hp 396?

https://www.barrett-jackson.com/Even...-SS-396-244568

With a Chinese booster too.....

[Bill Pritchard]

Originally Posted by RPOLS3

With a Chinese booster too.....

That probably held the bidding back another $5K.

[Lynn]

Originally Posted by Pro Stock John

I think the inheritance comment can't be generally true, only because there are always people dying and always people inheriting money. If that is constant then what is causing the recent spike in car prices. I think PPP might have impacted that like Mark said.

Speculating, maybe also individuals have saved more money for the last 14 months since many were not commuting, and also able to travel for leisure.

Regarding the inheritance; I don't believe it is the MAIN factor. Even though I numbered them 1 and 2, I didn't mean to imply that was an order of priority or importance.

It isn't just that people are dying. It is the generation of folks who are dying; people that saved all their lives because the depression scared the chit out of them. I went to see my Mom after work today. She was wearing a robe that she made about 10 years ago. She still wears a winter coat she made. She didn't have a "store bought" dress til she went to high school. She mowed her own lawn until she turned 87. My Dad never finished HS and never made any decent money. My Mom stretched it beyond belief. Dad was making less than $5,500 per year in 1968, and they had four boys all in private schools. My Dad made the dining room table that is still in Mom's house. 40 years later, and it is still gorgeous. I didn't live in a house with central heat and air until second semester of my Sr. year in HS (1971). No big deal if you are in San Diego; big issue in central OK.

To that add this: over 572,000 more people died in 2020 than in 2019.

I am in the estate planning arena and I am a financial advisor. I have seen more money changing hands from one generation to the next in the last 10 months then any other 10 month period in the last 30 years. Granted, I am a tiny sample, but I believe, talking to colleagues around the country, that the trend is nationwide. Not ALL of the baby boomers who are inheriting are blowing it on cars. I have MANY new investors that inherited their money, and they are frugal folks. But not all of them are frugal.

[BLACKLS5]

Originally Posted by x33rs

Honestly doesn't seem like a ton of money to me for something like that.

I mean if the car is as presented then in my opinion it's right in the ball park providing the reserve is say.....$48-50k??

The way I look at it, I see base model cars sell for $30-$40k that technically aren't even muscle cars. Cars like 307 camaros, or like the 68 firebird with a 350 in it currently on ebay, bid to like $25k right now and reserve not met on that one. Really? It's just a base firebird with no options, other than a stick poking through the floor it has no appeal. My opinion that one is already beyond the money it's worth.

For my money, I'd rather have a real muscle car, and the prices I'm seeing for base model stuff, it's not much more to get into a real muscle car. $50k for a 70 SS 396 does not surprise me. Step up the engine option in these cars and the price can more than double.

I guess in the grand scheme of things there are worse cars for the money but 50K for a L34 automatic? To be honest I like cars like this that look presentable and can be driven but close to 50K is an eye opener for me. Makes me think I should sell a couple off and reload when the market corrects itself. IDK...

[mprice]

I also believe the pay roll protection money has been a major factor in the recent prices. If you watch the auction I would say about 70 percent of the buyers are business owners. If your business is anything other than a restaurant you may very well be stronger than normal. Now on top of that the government will just hand you 2.5 months of payroll and all you have to do is keep your people employed which you were going to do anyway. Now take 2.5 months payroll times lets say 100 people. It is found money its not a loan and the cut off is up to 500 employees. What would you do if you found half a million dollars?

[McCune]

Within the next 25 years, we will see the largest wealth transfer in history as Baby Boomers pass an estimated $68 trillion down to the next generation. << I copied this. I think it has some traction!

[NorCam]

Buy cars...lol

[x33rs]

Originally Posted by BLACKLS5

I guess in the grand scheme of things there are worse cars for the money but 50K for a L34 automatic? To be honest I like cars like this that look presentable and can be driven but close to 50K is an eye opener for me. Makes me think I should sell a couple off and reload when the market corrects itself. IDK...

I guess it's all how you put things in perspective. When I see base model cars like a clean 307 camaro grab over $30k I just view a real muscle car like this 396 Chevelle (L34 or not) as a better bargain.

I think it's more crazy people pay $30k and up for a base model run of the mill car just because it's a 50 year old classic. So it doesn't make sense to me that the same people that go nuts over a clean 2 barrel nova or camaro feel that a real SS 396 Chevelle, a factory black car no less, shouldn't be more money.

I agree it's an eye opener, and 20 years ago I would have never thought I'd have to pay $50k for an SS L34 Chevelle. But it seems everything, even the stuff we'd consider cheap $5 or $10k cars with smog engines is now priced 3 times that, so it only seems natural the real muscle cars, even the L34 Chevelle that I'd consider a base muscle car for that model should also go up in price.