Barrett-Jackson Says Collector Cars Beat the Stock Market
The auction company came to this conclusion with the data from the “Barrett-Jackson mini-index” which they created in 2003, and consists of representative cars that reflect the diversity seen in the collector car market. These cars span from 1957 to 1970 and are primarily European and American sports cars and U.S. muscle cars. The cars used in the index are the 1957 Thunderbird, 1967 Jaguar XKE, 1967 Shelby GT500, 1970 Camaro Z/28, 1970 AAR ‘Cuda, 1965 Austin Healy MK III and a 1967 Corvette 427/435.
According to Barrett-Jackson, the value of the cars in the mini-index grew by a compounded annual growth rate of 16 percent from Q1 1998 to Q1 2008, which included economic and political upheaval stemming from major events ranging from the Invasion of Iraq, the Dot Com bubble crash, and 9/11. During that same period, the Dow Jones Industrial Average (DJIA) grew a compounded 5 percent annually while the S&P 500 Index grew 4 percent. The price of gold grew a compounded 11 percent in the same period.
This is very comforting information to know that even though the value of our portfolio has declined, the value of what’s sitting in the garage is still strong.
Barrette-Jackson must also be pleased with their mini-index findings coming out just prior to their inaugural Las Vegas event on October 16th at the Mandalay Bay Events Center. Steve Davis, President of Barrett-Jackson said in a press release,
“With all the turbulence in the current capital markets, we are pleased with our key economic indicators for this event. Tickets sales have been strong, our Las Vegas consignment slots were sold out a month ago, and bidder registration has exceeded our expectations. Bidder interest and registration have not waned despite the negative news coming from Wall Street.”You can watch the Barrett-Jackson Las Vegas event live on SPEED October 16-18.
Comments
I would like to see the collector car increase in value when storage, maintenance, insurance, selling commisssions, transportation, etc. is figured in compared to the long term stock market value.
I would say cars are going to dip a little this lower than they have been in the past three years. Taking that into consideration it makes the October auction a buyers market. As prices rise it shouldn’t take long to see a return on your investment in classic car.
The stock market and antique cars depend on the precise selection of the “correct choice”principle. If you make the right choice in stocks or cars,you will get a return.If on the other hand,you make a poor choice,you will tie up your money for a very long period for very little or no return.The five cars chosen reflect this.