why are classic cars worth money?

As somebody in my early 40's I have grown up in an era where most large purchases are disposable.  TV's get replaced when they break not repaired, laptop computers have become the standard and are "upgraded" by being replaced every 3-4 years.  

So this brings me to "why buy a classic?"  So here is my point and my current dilemma.  I have an open parking spot in my garage that is begging to be filled.  Since I already have a new daily driver and a 12'ish year old sports car I was thinking a classic car would represent something that was a unique variety to the garage.  I have had dreams of owning a 911 for years and was thinking about an aircooled car but am struggling with why they are worth so much money.  Here is my thought process.

$50 to $60k is what a decent air cooled car will cost these days, convertibles are less and 964/993 cars are significantly more.  For the same money I can get a 996tt, 997.1S or even a higher mileage 997.2 base car.  I can also get a brand new Toyota Supra (assuming I could find one for MSRP).  what makes a vintage car worth it?  

What makes a sane person pay for a round of golf? same thing.

Two words: supply and demand. 

Longer answer, a vintage car has a feel that's beyond the numbers. A minivan can out-drag my air-cooled 911, but the Porsche has a feeling that can't be beat–the smell, the view, the sound of the doors closing, the feel of its mechanicalness. (Very related, coming up soon in Classic Motorsports: air-cooled 911 vs 996/997.)

I am in the market (too many BaT sales) - need to reward myself with something. Almost bought a Z3M S54 for 50k at auction. Lost it by 1200. 

Got a lead on another car few states away - flying in Friday, will make a thread about it - as few GRM were instrumental in helping. Buying process has been a nightmare. For what I will pay for a 15 year old car, I can easily get a new GR Corolla or a CTR with warranty. But I don't want want either of those.  As was said before, supply and demand.  Additionally, I prefer to buy cars that are investments, hold them short time, buy right, and make a bundle, vs cars that are depreciating, and I have to hold for 15-20 years for any appreciable gain.  Lastly nostalgia. There is a reason some of us have paid 80k for a ITR or 150K for a MKIV supra.   95% of my customers that I sell to, are 25-45 year old dot com hipsters, who are fine paying me $80K for a old Land Cruiser, that they can take to cars and coffee on their way to $18 avacado toast with their 90lb blonde girlfriend.   Everybody has their tastes - I don't judge. I got plenty of weird car fetish myself. 

And then there's nostalgia. If you wanted a '57 Chevy, GTO, E30 M3, RX-7 TT or whatever in school and couldn't afford it, there's a strong chance that you'll want one (badly) once you can. 

The problem with old cars is they don't make any more of them.

In reply to David S. Wallens :

Nostalgia hits big, classic buyers are after a look or a feel. There are people that think about value but they're not really about driving them.

ClearWaterMS said:

I was thinking a classic car would represent something that was a unique variety to the garage.  

You answered your own question. 
 

Everyone thinks that, and there is a limited supply. 

What makes anything worth money? 

People want it. 

Nothing comforts anxiety like a little nostalgia.

z31maniac said:

What makes anything worth money? 

People want it. 

Several years ago, after a 964 Turbo sold for big money, I pinged a friend who had one: Any clues as to the high selling price?

His reply: Two dudes wanted it. 

Pete. (l33t FS) said:

Nothing comforts anxiety like a little nostalgia.

off the top of my head two of my favorite daily drivers that I have owned are my Saab 9-3 and Infiniti G35.  That being said one i wouldn't take either of those cars today if you gave me one.  

my favorite toy that I have owned was my fox body convertible that I had when i was 18, i wouldn't get rid of my corvette to get one.

Cause modern cars just don't feel like older ones. 80s and 90s were peak automotive for me.

My Bugeye Sprite is not a great practical transportation device. It isnt an especially fast one, considering at present it doesnt really go over 65mph. It isnt very safe, in fact its pretty much a 4 wheeled motorcycle.

BUT.  when I drive it, people smile. When I drive it I smile. 65mph feels FAST in it.  A trip to the grocery store becomes AN ADVENTURE. 

I'll agree with the nostalgia.  I owned a 71 Olds Cutlass S in college.  Could not afford to do anywhere near what I wanted to do with it back then.  If I could get a really good deal on one now, I'd love to have one again.

I love 70-90s cars, motorcycles & bicycles. When I walk into the garage they make me smile...........every time. How do you put a price on that?

Nostalgia + Scarcity = Collector Market.  In this case you'll never rationalize the price of something against it's actual utility.

Having been born in 1974, the cars of my youth/teenage years are pretty hard to get nostalgic about.  I graduated high school in 1992 when Miatae were all the rage, fortunately I haven't had to pay collector prices for those (yet).

David S. Wallens said:

z31maniac said:

What makes anything worth money? 

People want it. 

Several years ago, after a 964 Turbo sold for big money, I pinged a friend who had one: Any clues as to the high selling price?

His reply: Two dudes wanted it. 

My dad owned a used car lot growing up and was a notorius cheap ass. He always told me, "It doesn't matter what the price is, something is only worth what someone is willing to pay."

Everything here is true, but I think for the blue chip collectibles (1M USD and up?) it's also a financial tool for moving money around and borrowing against an asset.

If your budget is $50-60k, you can still find a clean E30 M3 if you poke around a bit. It would be VERY hard for me to spend more on an old air-cooled Porsche when the M3 does so much so well. It's such an icon and it's still practical enough for a daily driver, with four seats, full trunk, functional HVAC system, cruise control, antilock brakes, robust drivetrain, strong brakes, great visibility, etc. etc.

I was looking for a 964 Carrera 2 or Aston Martin V8 Vantage. Kept going back and forth between them. Good examples of each are in the upper end of your price range. I ended up going with my heart and bought a very clean E30 M3. The only mods are carbon-fiber DTM airbox, Alpha-N converison, and cams. To me, these make the car better to own, so I'm not concerned that they probably reduce the collector value.

I adore it; my 7 year-old loves it. I find myself driving it every day.

I jokingly tell people that they can track the value of a classic car by computing the age people were when the got their first bit of nookie in the back seat.  The value rises until the point where the nookie is no longer a practical application of effort, then it starts to taper off.

To answer the OP's question about classic cars, they just feel different from modern cars. I sold my Mitsubishi Lancer Evolution II GSR  recently, which leaves me with three "modern classics" at the moment:

• Mercedes-Benz 190E 2.3-16 (racecar)
• BMW E30 M3 (street car)
• Alfa Romeo GTV (street car)

They're all relatively light, compact, RWD sportscars with twin-cam four bangers under the hood and 5-speed manual gearboxes. The Mercedes and BMW have power steering and ABS, but no other driver aids. The Alfa doesn't even have those. They just feel great to drive. You have this amazing sense of connection to the road. Beautiful balance: very easy to 4-wheel drift through every corner. Awesome engine notes.

Modern cars are faster and "better" in every way...but you don't have anywhere NEAR the sense of being one with the car and road. With any of these, you really feel like you're driving. After that, modern cars feel like you're piloting an appliance.

In reply to LanEvo :

That's where I'm heading; I find 911 prices to be insane right now.

Belloq: You know it's true. How nice. Look at this [holds up a silver pocket watch] it's worthless. Ten dollars from a vendor in the street. But I take it, I bury it in the sand for a thousand years, it becomes priceless!

LanEvo said:

If your budget is $50-60k, you can still find a clean E30 M3 if you poke around a bit. It would be VERY hard for me to spend more on an old air-cooled Porsche when the M3 does so much so well. It's such an icon and it's still practical enough for a daily driver, with four seats, full trunk, functional HVAC system, cruise control, antilock brakes, robust drivetrain, strong brakes, great visibility, etc. etc.

I was looking for a 964 Carrera 2 or Aston Martin V8 Vantage. Kept going back and forth between them. Good examples of each are in the upper end of your price range. I ended up going with my heart and bought a very clean E30 M3. The only mods are carbon-fiber DTM airbox, Alpha-N converison, and cams. To me, these make the car better to own, so I'm not concerned that they probably reduce the collector value.

I adore it; my 7 year-old loves it. I find myself driving it every day.

i didn't think a non-basket case 964 was possible for less than 60.  i looked at a mid year 1974 hot rod on bring a trailer today the car had sold in late summer of 2020 for $46 and change and I was prepared to go up to 50 but it sold for 52,5.  

A guards red 964 hard top in stick would easily relieve me of $60k.  

For me owning a classic car is all about the feel of the car. This isn't going to apply to all cars, but I wouldn't own a classic if it was made of plastic like modern cars. My interior('66 Mustang) has a wood steering wheel, all the switches are metal and feel like quality when you use them...even the radio station recall buttons are a solid thunk when you use them. Nothing feels mushy or cheap. The only plastic in my car is the vinyl of the rear seat covers and the dash pad.(and of course wiring, no getting around that if you want modern wiring). There are no plastic pushbuttons or plastic bumpers, no cheap feeling components at all. I don't own a Porsche(I might go for a 914, but that's about it, I like the minimalist look of that car) and I don't think I would either...they are all too new back until they get to the style I just don't like.

As for the other question...are they worth the money being asked right now? Certainly not! I mean, I bought mine as a rusted out shell of a car and built it from scratch...just a base model I6 coupe, so it was within my price range(paid a little over 2k...then proceeded to spend a lot more on it). The price those idiots on BAT pay for any of the cars that end up there are just laughable. The worst part is that in turns into some kind of "justification" for sellers to point at and ask more for their ridiculous rust buckets.....and the cycle repeats, over and over again. People who treat cars as an "investment" are fooling themselves unless they happen to have an actual rare car...they don't seem to realize the longer they keep the car the more inflation steals whatever value it once had until the day you could have made more money on virtually any other investment short of Enron