If you like cars, you probably like classic cars. Like looking at them, at least.
But if you’re like most of us, you probably don’t own one – because you’ve probbaly never been able to afford one.
Well, now you can.
At least, if you can afford a new car. Which, arguably, no one can.
New cars have passed several Event Horizons, the first and most obvious being their initial cost. The average price paid for a new car sailed past $35k for the first time last year. This is well-equipped Camry/Accord family car territory.
People routinely spend this much on minivans, pick-ups and crossover SUVs. Graduation Gifts 2019 ... Buy New $22.99 (as of 01:20 EDT - Details)
And more on modern muscle cars like Camaro, Mustang and Challenger.
Money in that ballpark could also buy you a classic car – a restored one, brought back to better-than-new mechanical and functional condition. Not necessarily an exotic – but a cool car, regardless.
Including a cool old family car. A classic station wagon, for instance. Or how about a grand land yacht from the ’70s? It may not have air bags – a plus in my mind – but it has something better – lots of steel.
And it’ll be one that won’t be worth a third (or less) what you spent to buy it by the time you finally pay off the loan, as is always the case with new cars.
Which brings us to the second Event Horizon.
Depreciation . . . as opposed to appreciation.
Spend $35k on a new Camry vs. the same sum on restored classic. Gentlemen, start your engines. The relative value of the two will pass each other like cars drag racing in opposite directions. The classic car will very likely be worth more than what you paid for it after five years; the odds of it being worth significantly less are slim.