No argument from this corner, Chip!
But I still stick to my main point which was that we in the hobby and in the
trade need to discourage the spread of the belief that T-types are not worth
a whole lot of money. Rather, we should encourage people to try and get as
much for them as possible. We already have a fading market place, as the
people who longed to own these cars when they were young become too old to
enjoy driving them, and the interest in MG ownership is moving forward to
MGBs. (And, let's be honest, an MGB is infinitely more practical than a
T-type!)
So, to maintain the interest and enthusiasm for T-types, I believe we have
to support the proper restoration of these cars so that they are as drivable
as possible, and encourage people to believe that by so doing they are
spending money in a relatively sensible manner. Maintaining the resale
values as high as possible by not broadcasting that "you'll never get more
than a fraction of your invrestment back because the cars aren't worth very
much" seems, to me, a logical place to start.
Lawrie
BSC
----- Original Message -----
From: Chip Old <fold@bcpl.net>
To: <mg-t@autox.team.net>
Sent: Wednesday, August 16, 2000 10:40 AM
Subject: Re: TC Wanted
> Lawrie, this "what is it worth" debate has been going round and round as
> long as I've been involved with T-Types. It's interesting that the
> $35,000 someone is looking to pay now is $7,925 in 1970 dollars. (see
> inflation calculator at http://www.westegg.com/inflation/). Back then a
> good drivable TC went for around $1500 ($6625 in 1999 dollars), and fully
> restored ones were in the $4000 to $8000 range ($17,670 to $35,340 in
> 1999 dollars). Of course, the term "full restoration" didn't mean the
> same thing back then.
>
> But even then it was almost impossible to sell a "fully restored" T-Type
> for as much as it cost to restore it. With a few exceptions during
> periods when T-Types were hotly saught after by investors/collectors, it
> has almost always been true that the cost of restoring a T-Type is higher
> than most potential buyers are willing to pay. The bottom line has always
> been that a T-Type is worth only whatever someone is willing to pay for
> it. There has always been a wide gap between real market value and the
> "what I have invested in it" value.
>
> Whether or not we think it should be that way is immaterial. The real
> market value is decided by negotiation between seller and buyer, which
> depends on how badly the buyer wants to acquire the car and how badly the
> seller wants to get rid of it. What the seller has put into it in terms
> of restoration costs or long-term maintenance costs has very little to do
> with it. You can easily spend $40,000 - $50,000 to have a ratty TC
> professionally restored, but you'll be unlikely to turn around and sell it
> for that.
>
> On Wed, 16 Aug 2000, Lawrie Alexander wrote to Moorhead, Tim:
>
> > And I guess my point, Tim, is that we -as owners and restorers of
> > these cars - should do all we can to change that situation!
> >
> > If we, the "experts", decry the high prices and tell the world at
> > large that these cars aren't worth but a fraction of the restoration
> > costs, then who's to argue with us? The cars will always be worth a
> > lot less than it costs to restore them.
> >
> > If, on the other hand, we encourage people to buy cars for closer to
> > what it costs to restore them, we - as sometime sellers - win, there
> > is more incentive to restore cars properly in the knowledge that it'll
> > be easier to keep from getting upside-down, and the buyer of the
> > higher-priced car will have a greater appreciation of what he owns.
> >
> > In the grand scheme of things, it's also fairer, as why should it be
> > possible for one person to buy for $20K what another spent $40
> > restoring? Remember, market values are established by buyers and
> > sellers; if some "Blue Book" somewhere says a TC is only worth $15K,
> > surely that doesn't mean that we all have to sell our cars for that
> > price, or give up restoring them because they'll never be worth half
> > what the job costs?
> >
> > Just my 2 cents' worth, of course...........
> >
> > Lawrie
> > British Sportscar Center
>
> --
> Chip Old 1948 M.G. TC TC6710 XPAG7430 NEMGTR #2271
> Cub Hill, Maryland 1962 Triumph TR4 CT3154LO CT3479E
> fold@bcpl.net
>
>
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