Has the world gone mad? Car prices...

[BLACKLS5]

OK, I'm all about a nice '70 Chevelle SS but 47K and reserve not met? 3 days to go? I realize it's got the goods, buckets, console, cowl induction and Black to boot but 47K? I'm hoping the top tier bidders have confirmed the numbers matching claim for that kind of money.

https://www.ebay.com/itm/19418918496...p2471758.m4703

[daleone3]

Originally Posted by BLACKLS5

OK, I'm all about a nice '70 Chevelle SS but 47K and reserve not met? 3 days to go? I realize it's got the goods, buckets, console, cowl induction and Black to boot but 47K? I'm hoping the top tier bidders have confirmed the numbers matching claim for that kind of money.

https://www.ebay.com/itm/19418918496...p2471758.m4703

FOMO......Fear of Missing Out. some people read those ads and think they are gospel and have not felt the burn of a bad purchase and just click and bid without being fully informed. I have seen numerous six figure cars discussed on this site that trade hands but are known (to those that ask the question) to be clones or not #'s matching as claimed. In some ways, the people doing this keep the prices moving along and we all benefit. I had a friend that got burned years ago on a Nova SS bought out of Chicago. Was nowhere near what it was represented to be and he was told by an attorney to treat it like an expensive lesson. Litigating across two states would be more expensive than anything he would recoup.
PT Barnum said "there is an ass for every seat" and he wasn't wrong.

[markinnaples]

I'm copying this from the eBay section in the classifieds because Lynn stated it so well:

Tony:

1. Inheritance. Lots of older people dying and HUGE amounts of wealth being passed on to middle age guys. People my mom's age (she is 92) have lived frugally since the depression. I had some clients (H & W) that died fairly recently that were still living in a 900 square foot rock house out in the boonies. They were worth $12.1M.

2. I realize some will disagree, but I believe that MANY small businesses applied for PPP loans that were forgiven, AND received very favorable tax breaks in the process. Freed up a lot of cash. While the $1200 check doesn't allow Bubba to spend stupid money on a car, Bubba's small business employer may have benefited way more than that. Just one example of some windfalls that were unintentionally created with the hand outs.

The way my business is set up (and a lot of others) I COULD have applied for a loan and made a big windfall. I did not because the pandemic really did not affect me that much.

Just the first round at $2.3 Trillion comes out to about $7,000 per person in the Country. If Joe Sixpack (and many others) only got $1200, that's a lot of unaccounted for scratch.
__________________
Don't believe everything you read on the internet ... Ben Franklin

[70 copo]

My opinion: Inflationary pressure, crypto is being pressured by Fiat and the colonial pipeline so called “hack”, the stock market is in a bubble-overdue for a reset-and finally the FED is pumping endlessly.

The cars are not appreciating as much as the perception of tangible value is.

Unlike Bitcoin, collector cars are a tangible asset.

[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.

[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.

[Pro Stock John]

Originally Posted by Lynn

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.

Yeah I have seen this too. It's said that each generation's perspective is very much shaped by recessions (and the depression).

There might be even more factors out there, fast wealth creation for some folks for example.

US population is aging as well.

[1BADZ28]

Yep, You guys are spot on.....The older guys like me ( 69 ) are wanting to buy a nice muscle car before they are too old to shift the gears....I have been looking for a nice 69 Camaro Z/28 or SS/RS since last fall. The only problem is I want one at a reasonable price and I just can't bring myself to spend 90 to 120K for a 69 Camaro. Its looking like I'm going to have to wait until next year ( or later) ...Then I will be 70 looking for a 70....I really want a 69....Its just too crazy right now....Is there anyone left out there who is willing to sell a Camaro and not try to make a killing of a profit. The bubble will BURST someday guys,,,get it while you can......

[Mr70]

Add selling a House today to Lynns List.
A friend of mine got in over her head 13 years ago and paid way to much for a House,as the economy tanked right after the closing...She had to beg borrow & steal to keep her head above water for nearly as long,as she wanted to move,but her current House value price plummeted and she couldn't absorb that kind of a loss.
So she stuck in out for some 13 years,and by God,house prices last year predicted she could not only get back her initial buying price from 13 years ago,but get a heck of a lot more over that too.She also sold it w/o a realtor,and sold it for 3X more then she paid,as everyone ran from Covid in the cities and overpaid in the rural Suburbs.
Today she is living with her boyfriend in his childhood house.When the house prices eventually soften and we no longer have to pay OVER a sellers asking price as they take the highest offer,the 2 plan to sell his modest childhood house and take the nearly 500K she has burning a hole in her pocket and buy a nice House that she could never imagine owning as a waitress.

[RPOLS3]

Today's high prices are tomorrows bargains..........