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MG MGA - Will the GFC lower the price of MGAs?

Will the Global Financial Crisis lower the price of MGAs? Peak Oil has not seemed to make any difference.
(The GFC is worse than divorce - with both, your assets are halved - but with the GFC you still have your wife!)
Mike
Mike Ellsmore (1)

Hi Mike - interesting comparison - divorce/GFC - I must admit I chuckled. I have heard that the price of classic cars in show/concours condition is going up as investors look for a safe place for their money. That should make our good condition models go up too. cheers Cam
Cam Cunningham

We are hit pretty hard here in Japan as well. As for new cars, Ferarri posted a 15% increase in sales this quarter. It was all over the news yesterday. I hope the price of the classics comes down as I have my eye on a couple of As.
Tom Baker

From what I've been reading in auction reports, MGA values are holding well in the US/UK markets for cars that are well done and top quality. The MGA remains desireable, even to those who can afford a more expensive classic, and this has helped retain values. The auction scene may not be the best barometer for this however, and I'm not sure how values are holding for the "man on the street". In any case, I don't think we have anything to worry about. I wish I had my retirement savings invested in MGA's, I'd be way ahead compared to where I'm at right now!
Retirement, what retirement...?
George
G Goeppner

George, if we invested our retirement funds in MGAs we'd never be able to retire, who amoung us could bear to part with one when the time came? LOL
Bill Young

I thought we owned these cars for the joy and not for value. Who cares what they are worth....any car (or any asset for that matter) is only worth what someone is prepared to pay for it. I personally hope prices fall thus making them more attractive to the yonger generation who only seem interested now in Jap rice-racers these days. I smile when I see someone say oh my car is insured for $20,000 whtever, its what you actually sell it for that counts, a well loved ragged MGA thats been a lifelong friend is worth more to its owner than some shiney restored trailer queen any day... regards
Mark
Mark Mathiesen

I believe that we will, unfortunately, see things much worse economically before they get better. As more and more people lose jobs, things that can pay the mortgage and put food on the table will have to go. I think this will lead to two types of cars needing to be "unloaded". Those bought as "investments" by those that had high income jobs but failed to save and have debt to match, and those scruffy cars needing work or restoration by those who could never really afford to get around to it. I'm not trying to be cruel or insensitive here.

I don't see this as affecting MGA prices because our cars haven't inflated much. MGA's, Morgans and cars like these haven't been run up much by the bubble. When you look at what a nice A brings, it's really an inexpensive classic. Personally, I would look at cars like E-types($60,000-$80,000+), which are not rare, Healeys ($35,000 - $50,000+), odd ball Maseratis, DB Astons (which not long ago you couldn't hardley give away but are now over $100,000)etc. I think what we'll see is that there just wont be a market for these cars as they're not rare just expensive. The market for cars like T series MGs, XK Jags, Rileys etc. that never where adopted by the recent baby boomer buyers, will find almost no market. The generation that bought these cars are now worrying about whetether or not their retirements are going to last as long as they do.

Over the next 24-36 months, if you have cash, there'll be some fantastic deals to be had. This shouldn't be seen as exploiting the unfortunate. You'll be helping them solve an economic problem. While I haven't kept any statistics, I have noticed an increasing number of cars on ebay not making their reserve and going unsold. There will be a dramatically shrinking market for cars. I have made myself a list and a price ceiling for several cars I've been wanting.
GD Glenn

This thread was discussed between 18/02/2009 and 20/02/2009

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