Hello all,
Without knowing the history of this car, it is hard to know if this was
a sound "investment".
I do not know what MGBs sold for in 1972 (I hope someone could enlighten
me!), but, for sake of argument, let's say it cost $8,000. A return of
100% in 27 years would not keep pace with a 3% inflation rate! (I don't
know what inflation has averaged over the last 27 years, but,
remembering the hyper-inflation of the late seventies, I would have to
guess about six or seven percent). He could have done much better with
CDs or a money market account.
We must also address the cost of this "investment". As Allen pointed
out above, cars deteriorate over time, whether they are driven or not.
Since this was a "show winner", we can assume that it was in very good
condition. Was this car driven? At what cost was it restored? If not
driven, what cost was storage and upkeep? Did he need to keep another
vehicle so that he could "lovingly maintain" the MGB? What costs were
associated with going to shows (travel, preparation, time) so that it
could achieve this "show winner" status?
One of the great aspects of this hobby is that it can be approached on
many different levels. Some people like to keep their cars in showroom
condition. Some people like to return cars to showroom condition. Some
people like to let their cars age gracefully. Some people like to make
modifications to their cars so that they have a more modern feel. I
like taking a worn car and giving it new life. Each of these approaches
certain costs and benefits associated with them, but I don't think you
could ever find a "return on investment" that could even hope to keep up
with inflation let alone "appreciate" in any meaningful way.
There are many great joys and benefits given to us by our work on these
cars, but a "return to investment" is not one of them. Just trying to
keep things in perspective.
Jim Higgins
1962 MGA (waiting to resume a useful role in society)
1958 TR3A (It's Alive! It's Alive! now if it would only warm up enough
for glue to set I could put the trim in)
PS: This, of course, applies to the amateurs among us. Parts suppliers,
mechanics, restorers and others are supplying us with goods we require
and must recapture their investments and profit from them to continue.
Mgbreh@aol.com wrote:
>
> A member of my mg club recently sold his 1972 b for get this $16,000 yes 16k
> it is a very very nice car it won best of show in its class twice so who says
> mg's dont appreciate.
> Ray Huff
> 741/2bgt 76 roadster
> vp mgccnwc
|