This has been bandied about on both the MG and Healey list, and
probably others, as well. Simply stated, there is no
way to determine whether anything will appreciate in value. In the
simplest of terms (Econ 101) prices rise when there are more buyers than
sellers. Conversely, prices fall when there are more
sellers than buyers. Nothing else factors in to the equation.
I think that the reason that prices are flat is that there
are about the same number of buyers and sellers. The other factors to
be considered fit right in w/ the cry that the younger people are not
interested in taking up the hobby. Nope, as a whole they are not. No
question about it. I don't have an answer/solution for that. Going back
to the lack of buyers idea, mix in that few young people are getting into
the sport and you will see why the market is soft. There are no magic
elixirs for prices. The gov't may prop up wheat prices artificially, but
will probably not do it for LBC's.
When you look at a car's "worth" , what do you have? Econ 102
will tell you that an object is worth what someone will pay for it. No
more and no less!! Ergo, a "11k MG" may, or may not be "worth" 11k. If
no one will give you 11k for the car, then it obviously is not worth that
much, regardless how much you have in it. Ever been to a high volume
jewelry story? "Today, and today only, we'll sell you a ring valued and
appraised for 9K for $1,500." What a crock of crap. If your best offer
for your car is 6k, then that is about how much it is worth. It does not
matter if you have 20 thou in a car, if it will only bring 6, then that
is what it is worth.
Enter appraisals- you have an appraisal that says your car is
worth 20k. So what-will they give you 20 for it? 15? How about 6K?
Now we are where the worth is. That's why stated/agreed value insurance
so important. The company is not saying your car is worth any amount.
It is saying that if it burns to the ground, then they will pay you the
statedagreed amount. Big difference.
Soapbox mode off
Larry Dickstein
bugide@juno.com
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