| This series is designed for the person new to the | | | | make and model. |
| muscle car world. You know you'd like to own | | | | To see what the market thinks various make and |
| one, but in all honestly, they all look great to you | | | | model cars are worth based on their varying |
| and you have no idea where to start. We'll | | | | condition, simply visit Keith Martin's Collector Car |
| assume that you want to really like the car as | | | | Price Tracker. It's one of the best resources on |
| well - even if you are purchasing it as an | | | | the web to get an idea of the trends in the |
| investment. Our series will deal with the following | | | | industry based on SALE prices of cars, and you |
| topics (and by the end you'll be ready to wheel | | | | can look at values over the last several years on |
| your new ride down the road): | | | | a model by model basis. (The cost is fairly |
| 1) Determine the make and model you want | | | | inexpensive, but as an option you can get a free |
| 2) Determine how you want to use the car (drive | | | | one-month membership to Keith Martin's site by |
| often, show car only, etc.) | | | | signing up for The MuscleCar Place newsletter.) |
| 3) Determine your price range and payment | | | | Remember, HOW you plan to use the car is a |
| method | | | | must when looking at car values. You may come |
| 4) Evaluate the car, set up insurance, and | | | | to the conclusion after looking at the sale prices |
| purchase | | | | cars have gone for that you need to look at a |
| Since we've already deal with Topic #1 (Deciding | | | | different make/model, or change your plans in |
| which make and model car to choose) and Topic | | | | how you will use the car. |
| #2 (Determine how you want to use the car) we | | | | In addition to Keith Martin's Collector Car market, |
| can now move on to the next step. | | | | start taking notice of all the prices listed in the |
| Today's topic: Determine your price range and | | | | Classifieds section of the good online sites. Most |
| payment method. | | | | asking prices for cars are consistent with what |
| After completion of steps 1 and 2 you should | | | | the market will bring (give or take), so you should |
| now have your make and model choice fairly | | | | at least be able to develop a trend. |
| whittled down, and you've likely already started | | | | * Payment Method: |
| noticing a few prices. Now let's dig into | | | | Now that you have the make/model down, how |
| determining what a reasonable price range would | | | | you're going to use the car determined, and have |
| be for a particular car, and then go about deciding | | | | a good idea of what the car will cost you to buy |
| how to pay for it. | | | | it's time to put your payment method together. |
| * Price Range: | | | | Do this BEFORE striking a deal for the car. Being |
| Determining the price range on a major purchase, | | | | prepared with information in this step is key to |
| whether it be a muscle car, a fighter jet, or a | | | | making a purchase that is fair to both you and |
| dishwasher generally comes down to evaluating | | | | the car owner, so do your homework ahead of |
| your personal financial situation and determining | | | | time. |
| what you can afford. We'll assume that you | | | | Most dealers do offer financing of some type as |
| already understand that and will stick to | | | | a courtesy, but in all honestly the best payment |
| determining the price range that the make and | | | | method is the old fashioned one: cash. Buying a |
| model car you are looking at may fall in. | | | | car in cash will help you do a couple of things: |
| So just how do you really determine the price | | | | 1) It will allow you to negotiate the best price |
| range for a classic muscle car? Simple - you need | | | | possible |
| to take a look at what the market thinks it's | | | | 2) It will secure you from (potentially) being upside |
| worth. Just like real estate, muscle car values are | | | | down in a loan - and remove other risk as well. |
| determined by what the market thinks the cars | | | | If you are buying a car for an investment, the |
| are worth, not by calculating the sum cost of all | | | | car really can be considered part of your overall |
| of their parts. The price that people are currently | | | | portfolio (just as real estate might be). Never |
| paying for muscle cars is key. It's a subjective | | | | cash out a 401k early to buy a muscle car (or |
| thing that relies on supply and demand. Also, unlike | | | | anything for that matter), but instead use cash |
| 99% of modern cars, 1960's and '70's muscle | | | | available on hand or transfer it from other cash |
| cars are really not going down in value anymore. | | | | investments. Remember, while muscle car values |
| Their value bottomed out long ago and has been | | | | have been doing well in the past 10 years |
| on the rise ever since. Over the past few years | | | | investment growth is not a guarantee. Bill Paweski |
| we've seen somewhat of a bubble in values, but | | | | at Arizona Classics routinely recommends to his |
| they still remain quite high. | | | | clients to be mindful of the market - and to be |
| Now that we understand how value ranges are | | | | prepared to hang on to the car until the market is |
| established for a make and model, it's clear to see | | | | ready before even thinking about selling it (which |
| why understanding how you will use your muscle | | | | is another good reason to purchase in cash)! |
| car is critical when doing your car shopping (refer | | | | Wrap-up: |
| to our previous post for more details). If you are | | | | Doing your homework up-front will save you a lot |
| planning to have a weekend funmobile, a mid-price | | | | of pain later on. Now is not the time to shortcut |
| range car is going to serve you quite well, and | | | | the process. The last thing you'd want to happen |
| you may even be able to go cheaper. If you're | | | | would be to end up hating the muscle car that |
| buying a car for an investment a mid-price range | | | | you purchased, and if you follow the process laid |
| car is likely the LOWEST value of car you would | | | | out here that will not happen. Go for it! |
| go with. Remember, the unique cars, the popular | | | | In our next and final post in this series we will |
| cars, and the all original cars are going to be at | | | | discuss how to evaluate the car, set up insurance, |
| the high end of the price range for that particular | | | | and purchase! |