gas prices and Corvette market value

[Willard M.]

Some of you may have noticed that the price of gas has inched up ever so slightly recently. I wonder what effect this dramatic change in gas prices will have on the prices of our cars. I can see that short-term the prices may fall off some as folks respond to more pressing needs in their budget. Spending a sizable chunk of income for fuel, heat,and ultimately for everything else may remove some of the demand in the marketplace. This would probably lead to some falling prices for toys like our Corvettes. I can also see the possibility of the opposite as people look for tangible assests to park some money. Any thoughts about which direction is more likely?

Bill #2659

[Warren F.]

Re: gas prices and Corvette market value

Bill:

Very interesting question to ponder. There is an auction this weekend in NY that features a lot of rare desireable 'vettes and musclecars (Rand/Workman) I think it's called. The results should be interesting!!!

My opinion, I think the well off (financially)individual enthusiasts will continue to seek the rare and desireable cars of their liking. Those of us who are comfortable(financially) who were of driving age during the '60's and early '70's (turn 16 in 1970) might hesitate to spend 70 to 85K for a '68, '69 L-71/L89 car, but probably would do 30 to 35K for a '70 to '72 LT-1 car presently under current economic conditions, maybe holding out a bit to see where things might head. Just my .02

[John O.]

Re: gas prices and Corvette market value

Hi Bill

I know the gas prices are crazy but I won't let that stop me from enjoying my 62 vette. I just purchased a 41 Willys to build for street / strip. These are only cars you drive alittle bit each week.It's the daily driver cars that are the concern in my opinion.Back and forth to work and so on.

John

[don 42616]

Re: gas prices and Corvette market value

Bill, I think at least in the short term prices will be below sellers expectations. Not only high gas prices ($3.25 premium in Ca.) But the disaster in La.& Miss.will take peoples mind off classic cars. Altho most C1,C2,C3 oweners donot use there cars as daily drivers, So gas prices will not be a deciding factor.
When people are nervous 40 y/o cars are not priorty. My 2002 averages 23 MPG!!
It is the most econocial car out of 5 I own!!

[Mike M.]

Re: gas prices and Corvette market value

john: wouldn't happen to have a spare set of windshield garnish mouldings for a 40-41 willys? thanks, mike

[Donald M.]

Re: gas prices and Corvette market value

John, You are correct about the problem being the daily drivers. We have three cars in the family counting the Vette. The regular cars are on a "driving holiday" system. That is, only two days a week of driving per vehicle, excluding the Corvette. Yes, we are retired so mercifully don't need to drive to work everyday. The Vette is exempt due to the extremely low usage.
Gas prices will not effect the market values of our cars.

[Tim G.]

Re: gas prices and Corvette market value

I'm convinced that as fuel prices increase, the demand for older Corvettes will increase. People are less inclined to go out and purchase a new high performance car and will probably revert to fuel miser vehicles or hybrids. My daily driver is a six cylinder car due to the many miles I drive every year. I consider it a treat to get in my big old "V8" Corvettes and feel the power. These big bore motors and high performance vehicles will dwindle in production as fuel prices skyrocket.
When everyone is driving hybrid slug, you can imagine the need to get into a tire scorching old Corvette and feel the power.

[Donald B.]

Re: gas prices and Corvette market value

It SHOULD not have an impact. I drive my '62 about every other weekend - 100 miles round trip. I get 15 MPG instead of 25 MPG. At $3 a gallon the extra cost is $9. If that is stumbling block for someone they probably can't afford the car anyway. $9 is a small price to pay to have the wind in my hair and the sun on my face.

[John O.]

Re: gas prices and Corvette market value

Hi Mike

I sent you an e-mail of who can get them for you..I hope. Good Luck. Do you have a Willys? For everyone out there, you can't let the high gas prices stop you from your dream and hobby. The 41 Willys I got will have at least 400 - 500 hp. It's my fun toy. Enjoy life while you can. Both my vette and Willys are here to stay.

Keep the dream going............John

[Mike M.]

Re: gas prices and Corvette market value

thanks for the tipo. my willys is an ex-gasser out of oklahoma in the 60's. a pickup that i've installed a crate LT5 with ZF6 and dana 44hd. it'll be an autox/road racing demon. maybe you and i and the dipstick of lyle, wash should start a willys chapter of ncrs. dipstick also has a willy. mike

[Tony Merendino]

Re: gas prices and Corvette market value

I feel the Corvette market is on the verge of collapse. If you are the owner of a Mid year big block car the time to dump it is now before the market crashes further. I feel prices are already off 40-50% and no end is in sight. Move quickly as the price of gas is projected to climb even higher in the next 6 months. Please send me an email as I would be happy to assist you in dumping your car. I would also consider a nice mid year small block car or a straight axel.

[Jack H.]

Re: gas prices and Corvette market value

Gas is the equivalent of $5+ per gal in Europe/Australia and hasn't damped the enthusiasm among car collector purists... Figure there are several discrete market segments: (1) daily driver, (2) weekend warrior, and (3) museum piece collector. The last two market segments will be unaffected by the price of petrol because the cars simply aren't driven enough for fuel economy to discourage purchase. And, for segment #3, the car is virtually never driven--maintained only as an inflation hedge asset.

[Joe L.]

Re: gas prices and Corvette market value

Don-----

Yup---that's how it is. Most of the older Corvettes are not daily driver type cars. Certainly, the "high dollar" type are not. So, regardless of how high fuel prices might climb, it should not be much of a factor for cars like these or be any significant factor in the price that folks would be willing to pay for them. There may well be other factors that influence the values of older Corvettes in the future, but I don't think that the price of fuel is going to be one of them. Also, the word is that there are a "few" of these cars in Europe and Japan where the price of fuel has been astronomical (mostly due to taxes)for decades. Folks there still pay high prices for collector-type cars, including Corvettes.

However, I think that the price of fuel is going to be a BIG factor in the value of other "driver type vehicles" that get low mileage. I think that the price of fuel will drop somewhat after the oil production and refinery problems in the Gulf of Mexico are resolved. However, I would not expect it to drop very much over the price of pre-Katrina. In the short term it may even rise more before receding. However, in the long term, I think that the price of fuel will rise inexorably. I've been saying this for years and it's finally upon us. The problem is that we have "near-peaking" worldwide oil production while, at the same time, we have ever-increasing demand. That's a prescription for higher prices. Unfortunately, the nature of the petroleum products market, especially for transportation fuels, is that it takes a significant increase in price to "dampen" demand----10 or 20 cents won't do much. I fear that the amount of price increase that it will take to "balance" supply with demand is going to be quite shocking as time goes on.

Some of the problem is due to a shortage of US-based refining capacity. Much of this is due to "environmental concerns" and the "NIMBY Syndrome". However, oil companies have not been very agrressive, at all, in proposing and pushing for new refineries. You see, refineries represent a VERY HIGH capital investment that must be amortized over a very long term. Oil companies are smart enough to know that refineries will be a lot less necessary when the crude oil to process is just not there. And, they know that the world production capacity for crude oil has just about peaked. Certainly, production capacity in the US is in major decline.

Unfortunately, I think that the short and long term effect of fuel cost increases may represent the "final nail in the coffin" for one or more of the "Big 3" US auto manufacturers. About the only meaningful "profit center" for all of them is large SUVs and trucks. These are just the vehicles that I would expect are going to take a BIG, BIG hit in sales (and, resale value). The foreign-branded manufacturers have a BIG "leg-up" in building fuel efficient cars and, especially, hybrids.

So, hang on to your hat---I fear that it's going to be a very "bumpy" (and terrifying) ride ahead.

[Tracy C.]

Suggest when you play with your Willy...

make sure no one is watching..

[Tom D.]

Nice try. I enjoyed it! *NM*