Lawrie, this "what is it worth" debate has been going round and round as
long as I've been involved with T-Types. It's interesting that the
$35,000 someone is looking to pay now is $7,925 in 1970 dollars. (see
inflation calculator at http://www.westegg.com/inflation/). Back then a
good drivable TC went for around $1500 ($6625 in 1999 dollars), and fully
restored ones were in the $4000 to $8000 range ($17,670 to $35,340 in
1999 dollars). Of course, the term "full restoration" didn't mean the
same thing back then.
But even then it was almost impossible to sell a "fully restored" T-Type
for as much as it cost to restore it. With a few exceptions during
periods when T-Types were hotly saught after by investors/collectors, it
has almost always been true that the cost of restoring a T-Type is higher
than most potential buyers are willing to pay. The bottom line has always
been that a T-Type is worth only whatever someone is willing to pay for
it. There has always been a wide gap between real market value and the
"what I have invested in it" value.
Whether or not we think it should be that way is immaterial. The real
market value is decided by negotiation between seller and buyer, which
depends on how badly the buyer wants to acquire the car and how badly the
seller wants to get rid of it. What the seller has put into it in terms
of restoration costs or long-term maintenance costs has very little to do
with it. You can easily spend $40,000 - $50,000 to have a ratty TC
professionally restored, but you'll be unlikely to turn around and sell it
for that.
On Wed, 16 Aug 2000, Lawrie Alexander wrote to Moorhead, Tim:
> And I guess my point, Tim, is that we -as owners and restorers of
> these cars - should do all we can to change that situation!
>
> If we, the "experts", decry the high prices and tell the world at
> large that these cars aren't worth but a fraction of the restoration
> costs, then who's to argue with us? The cars will always be worth a
> lot less than it costs to restore them.
>
> If, on the other hand, we encourage people to buy cars for closer to
> what it costs to restore them, we - as sometime sellers - win, there
> is more incentive to restore cars properly in the knowledge that it'll
> be easier to keep from getting upside-down, and the buyer of the
> higher-priced car will have a greater appreciation of what he owns.
>
> In the grand scheme of things, it's also fairer, as why should it be
> possible for one person to buy for $20K what another spent $40
> restoring? Remember, market values are established by buyers and
> sellers; if some "Blue Book" somewhere says a TC is only worth $15K,
> surely that doesn't mean that we all have to sell our cars for that
> price, or give up restoring them because they'll never be worth half
> what the job costs?
>
> Just my 2 cents' worth, of course...........
>
> Lawrie
> British Sportscar Center
--
Chip Old 1948 M.G. TC TC6710 XPAG7430 NEMGTR #2271
Cub Hill, Maryland 1962 Triumph TR4 CT3154LO CT3479E
fold@bcpl.net
|