At 09:42 AM 08/16/2000 -0700, Mark Hineline wrote:
>
>This is an interesting question that will never have a suitable answer.
>But here is a possible rule of thumb. Let us suppose that someone buys a
>TC new in 1948 and drives it 60 miles per year for 52 years, so that
>there are some 3120 miles on the clock. Other than that it has been
>garaged for the whole period. Regular, loving maintenance. What should
>such a car be "worth" today. One way to go is to figure purchase price,
>maintenance cost, an average $100 per year storage, and a seven to eight
>percent profit plus inflation, compounded daily. In other words, the
>owner might expect to get back all costs plus a suitable profit for
>having the forsight to buy a TC and the scrupulousness to keep it cherry.
>
>I am guessing between $20,000 and $25,000 for that car (I don't have my
>tables handy).
>
>In principle, a restoration should never cost more than this car, no
>matter how much was spent on the restoration. Because, in principle, no
>restoration can have as much value as this car.
>
>But that's just hypothetical.
>
>Mark Hineline
>
Am I missing something here? Do the rules of economics not apply? Isn't
price a function of demand and supply.
What's different here, is a mix of emotion and hobby. Each person in the
hobby has different expectations and desires not to mention pocketbook.
I have several MGs ranging from a 34 PA to an 80B. They are stored in one
place, and often someone who has heard about them, wants to see in my
garage. When they see the cars, often mixed in the oos and ahs is the
statement "and a great investment too" I always point out that its a lousy
investment. A good investment is a mutual fund. The day after the car is
finished, it begins to depreciate. I can never recoup a fraction of what I
have spent on these cars.
The car restorers deserve to charge 30 or 40 thousand to do it all
correctly, and if the passion and funds are there (let the guy chase his
youth, its better than getting old) so be it. Unfortunately when it comes
time to sell for what ever the reason, the old law of supply and demand
takes over. There are so many cars and so many buyers. Unfortunately most
MG models are not rare. I can not put a price on the fun ,adventure and
friends I have had and have as result of these cars. Many have spent more
on golf or vacations with no financial return.
The end point is, I intend to take my cars with me! It was Woody Allen who
asked if there was sex after death? I ask if there are MGs as well.
Mike
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