There have never been cars that have outperformed the muscle cars of the 1960's and the early 1970s. Unrefined, powerful, and big is the only way to describe them. They cannot be termed sports cars in any traditional sense of the term. They were not agile, and curves were hazardous no matter what speed they were traveling. They may not have had sophistication, but they did have brute force. In a lot of ways the Road Runners, GTOs, Mustangs and others like them were representative of the American character. This was truer of these cars than those that came before, or have come after. You could count on singularity of purpose, simplicity, strength and dependability from these cars. There is no way the purpose of these beasts could be confused. Clearly the purpose was pure performance for a quarter mile. There was nothing else of importance.
In contrast with today, the legends of the past become even clearer. Of course, even the most powerful classic Corvette can be beaten by the new Corvette. Today's performance cars do, indeed, top muscle cars when it comes to reliability, safety, comfort, and even performance. Of course that's not the complete story. It certainly does not explain why people remain interested today or why the value of classic muscle cars continues to increase. These cars are simple and clear cut, and that is a refreshing feeling. This brings out the primal instinct in us all! These cars have a very specific hold on the folks that came of age at the end of the 1960s. A lot of people think that this may be the last chance they have to re-live the happy days of their youth. For this reason, they don't mind paying the price.
One example is the 1970 Dodge Hemi Barracuda. In 1970, it sold for $4,035. Now a well-preserved model can easily go for $150,000. That is like a return of 10.6% annually. This is an impressive return when you consider the fact that, during the same period, the average stock market return is about 7.4% a year. In a similar fashion, you would find a 1970 Chevy Chevelle SS convertible with a 454ci engine selling for $4,200 new. If you look for one now, it will cost you about $115,000. That's a 9.7% annual return. As a final example, consider the 1969 Boss Mustang with a 429ci Engine. This car cost $4,150 new. Today you would have to pay $115,000 for one in mint condition. That is equivalent to a 9.6% return during the same time period.
Of course, this only applies to muscle cars that are exceptionally rare and highly sought after. Nonetheless, even the most common of muscle cars have increased in value. In 1970, you could buy a Plymouth Road Runner with a 440ci engine for about $3,500. Today the same car is trading at around $55,000. In 1967, you could get a Pontiac GTO for under $3,750. That same car today runs $45,000. The rate of return combined is 6.8%.
If you want to invest in muscle cars, there are some important points to consider. Naturally, there is risk with any investment. Like all markets - be they technology stocks, real estate, or something else - can fall just as quickly as it rises. The second reason is that muscle cars don't pay any interest or dividends. This is a difference from an investment in a money market or the stock market. They certainly do cost a lot to restore, maintain, and store. The third thing to remember is that rarity is an important quality. Look at the numbers, and you will see that the muscle cars that are the rarest are also the best performers. Remember to get a second opinion if you are considering buying a classic muscle car. If you can find a mechanic who has actually restored a muscle car or two, he will be a good choice to give you a second opinion. Experience can't be beaten.
Condition is clearly one of the more important points to think about when you are thinking of muscle cars as an investment. Of course, only cars that are accurately restored to their original condition will get this kind of price. A more common type or a car that is not in perfect condition will cost less. If you are a collector who wants to use the car on a regular basis, you may find that a more common version will be a better value.
Your budget will be one deciding factor in whether you choose a daily driver or a rare collector muscle car. You will find a lot of enjoyments and unique benefits of ownership with both. It's always fun to re-live your youth.
LemonFree.com - Buying or Selling a 1969 Pontiac GTO? Check out LemonFree.com Cars