914-6 Basket Case, What is the Bid/Ask spread? Options

[ctc911ctc]

All,

I know a guy that has a 9146 that is a basket case - all of the parts are off and taken apart. All orig numbers.

Rusty car, though has some really good parts - some not so good.

What is the bid-ask spread for this kinda car?

I am thinking 17-25??????????

[Unobtanium-inc]

Applying investment potential and upside down logic to what a project car is worth is a fool's errand. The market always pays more for a project car than it is logically worth. This is for a variety of reasons.
1. Lots of guys have good incomes but don't have $100,000 to drop on a done car, but they can come up with $25,000 and then will spend another $100,000 over the next 5 years to restore it. Are they upside down? Maybe, but the alternative is to not have a cool car.
2. Lots of guys would rather buy a project car so they can control the work done, either by themselves or because they want "their guy" to do the paint, and "the guy" to do the chrome. Anyone who has ever bought a restored car that ends up being a pig with lipstick can understand this.

Bottom line, a project car always brings more than logic says it should, anyone who applies logic to buying will invariably lose out on cool cars and be pissed, because the guy behind you is buying with his heart, not with his head. When I buy cars for myself it tends to be all heart, and I'm rarely disappointed. When I buy for re-sale it's all head, so it doesn't matter how cool the car is, if the math doesn't work it's a no-go. I had to explain this to a guy a few weeks ago who was trying to sell me a Carrera Speedster, he kept saying, "but it's a carrera Speedster!" If the math doesn't add up, it doesn't matter. But that's business, not personal. When I buy personal cars I aim to be as big eyed as the next guy, you get the coolest cars that way and Porsches almost always go up in value so it isn't that you paid too much, you just may have bought too soon. Time heals all wounds.

[stevegm]

Applying investment potential and upside down logic to what a project car is worth is a fool's errand. The market always pays more for a project car than it is logically worth. This is for a variety of reasons.
1. Lots of guys have good incomes but don't have $100,000 to drop on a done car, but they can come up with $25,000 and then will spend another $100,000 over the next 5 years to restore it. Are they upside down? Maybe, but the alternative is to not have a cool car.
2. Lots of guys would rather buy a project car so they can control the work done, either by themselves or because they want "their guy" to do the paint, and "the guy" to do the chrome. Anyone who has ever bought a restored car that ends up being a pig with lipstick can understand this.

Bottom line, a project car always brings more than logic says it should, anyone who applies logic to buying will invariably lose out on cool cars and be pissed, because the guy behind you is buying with his heart, not with his head. When I buy cars for myself it tends to be all heart, and I'm rarely disappointed. When I buy for re-sale it's all head, so it doesn't matter how cool the car is, if the math doesn't work it's a no-go. I had to explain this to a guy a few weeks ago who was trying to sell me a Carrera Speedster, he kept saying, "but it's a carrera Speedster!" If the math doesn't add up, it doesn't matter. But that's business, not personal. When I buy personal cars I aim to be as big eyed as the next guy, you get the coolest cars that way and Porsches almost always go up in value so it isn't that you paid too much, you just may have bought too soon. Time heals all wounds.

Applying anything but an investment mindset, whether economic or an investment in pleasure, will likely lead to disappointment. I agree with your two rationales. My response was really a reply to the comment about “value.” I should have replied directly. Putting behavioral economics aside, the “value,” at least economically is a simple equation - present value of expected cash flows. Either way, it is an “investment,” whether economic or otherwise. Yes, project cars sell for higher than they should, rationally. And to that end, it’s often best to buy as complete, close to “finished,” of a car as can be afforded at the time. The “basket case” project car will likely be upside down for some time, unless the builder does much of the work themself. At least that’s been my observation. (IMG:style_emoticons/default/beerchug.gif)