Fred Leckstein asks rhetorically:
> Am I missing something here? Do the rules of economics not apply? Isn't
> price a function of demand and supply?
Yes, price is a function of demand and supply. But, oh so imperfectly!
The ideal venue through which price might be set is a closed market, such
as the New York Stock Exchange or a large auction house like Sotheby's.
In such places, both supply and demand can be known.
The British classics magazines do a fairly good job of setting currents
values -- in Britain.
But look where this thread started. Reputed buyer wants to buy a "show
quality" MGTC. This "demand" is made through an interesting kind of
"market," a kind of straw market -- the show -- where judgments of value are
made, but where money doesn't change hands.
What constitutes a "show quality" MGTC? Does a TC in original condition,
with changes only in battery and rubber (tires, seals, etc.) count? Does
a restored example beat such a car? See, herein the canker gnaws. I don't
think that a restoration should be worth as much as a babied, low-mileage
example. (I don't have a TC, original or restored, so I haven't any
direct interest in the outcome of this discussion).
Here's the problem with restorations: the less skilled the owner-restorer
is, the more expensive the restoration. Hasn't anything to do with the
quality of the outcome. Nothing at all. You could probably do a TC
restoration that cost $100,000 and looks great. But the costs hide the
fact that the owner-restorer made lots and lots of mistakes that go into
the costs.
On the other side of this, imagine an owner-restorer who knows how to
beat metal, has a mill and a metal lathe and knows how to use them, and
who has a pal across town with a forge and a foundry. Not counting his
time, and his pals, he could bring in a restoration of a $6000 basket
case at under $10,000, including the purchase price. Probably well under
$10,000.
My point, after having rambled a bit, is this: restoration costs must be,
in principle, irrelevant.
Mark Hineline
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