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From: Marc Tyler[SMTP:mtyler@hctc.net]
Sent: Tuesday, August 03, 1999 7:48 PM
To: Jim Tyler; Roadster list
Subject: RE: Collector Car
> the more popular the car, the wider the supply chain will be
Exactly,when you have millions of examples of a car there's a market.
If an extrordinarily rare piece of work like a Bugatti, you've got
people like Ralph lauren who can afford to have them. We're in an
awkward middle ground with our cars. Low numbers, low collectibility,
inflating the value won't help.
I have to disagree. Improving the collectability will help. It will increase
the number of cars surviving, preserve/expand the dwindling customer and
enthusiast
population, and bring the value of the car into a more appropriate range.
We will see how happy you are when you wreck your 8500.00 2L and your insurance
company establishes the value at 2500. After you fight with them 3-6 months
they give
you another 900.00. Hope you "enjoy that ride" so to speak.
>>That is why you still can buy virtually everything you need to restore a
>>Mustang. There are alot of reproduction parts made because there is a market
>to
>>support it.
>There is a market because they sold over a *million* Mustangs, not
>thirty-some thousand. Try finding a fender for an Allard, that's more
>the prod. run we're talking about. And they're very collectable. As desireable
>as these cars are, the low production #s make parts an exclusive boutique
>business.
For roadsters, in a large part to the low value, it generally makes it a
marginally profitable - at best - business. That is why most if not all of the
suppliers you deal with (except maybe Nissan at this point), has seriously
considered folding it up at one time or another (or have).
I am pretty sure Ross, Mike Y., Dann, Dean, and others would all agree.
I would think things have to be close at CDM with the number of hours that go
into a real restoration. How long do you think CDM would survive if they were
spending 15K on
every restoration and selling them for 10K? CDM must sell them over the
cost of restoration, or
they die. If they don't profit on restos, they must profit on parts or
service, or...they die.
(If they are trying to make a living at it, of course)
In fact, I think we owe some of the recent appreciation in value and
collectability to CDM's
-* Marketing* - attracting greater, higher profile interest in these cars -
which is precisely where I was leading with the start of this thread.
> Remember now, the market is by neccesity just a few thousand customers,
>'cause they 'aint >making roadsters no more.
Exactly my point. As the roadsters go away because they aren't worth fooling
with,
(and they are going away pretty quickly) so do the customers and so do your
roadster suppliers.
So does competition, up go the parts prices and the parts availability plumets.
IMHO I think we would all be better off if the car were more collectable (It
will never be a Healy, or
an Allard, let alone a Bugatti so don't get all flustered, like I said we would
be super lucky to
double the value.)
Besides, you already own it, yes?.
Saying you don't want it to apreciate, is like saying you don't want a raise.
(And I wouldn't worry there isn't any way we are going to move them "into the
next tax bracket",,,, not a chance.)
Keep in mind, I wasn't proposing some kind of crooked scam to jack up the
market price, so we
can all get rich. I just would like to see it reach a fair level. Right now
it is far below that.
Oh well, I guess I'll leave it at that. Kind of sorry I brought it up. Have
fun.
Jim
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