ACtion Magazine - April 2014 - (Page 10)

Classic cars By Keith Leonard, Esquire W hile America is a relatively young country, its population has shown a fascination for old things. One of the television shows playing to that fascination is Antiques Roadshow, where viewers get a chance to have an "antique" that they own appraised by an expert. Combine the fascination with things old with the more recent trend of reality television and we get television shows like American Pickers, Cash in the Attic, Hollywood Treasures, Auction Hunters, and Pawn Stars that have aired in the last few years. So it should come as no surprise that a show about finding, fixing, and flipping classic cars would be created. Thus, the television show, The Car Chasers, was born. While it is universally agreed that an older automobile can become a classic car after a certain number of years have passed since it was built, the number of years before a car becomes a classic varies around the world. In the United States, a car must be between 30 and 49 years old to be considered a classic by the Classic Car Club of America; though an insurance company may classify a car that is at least 20 years old as a classic car. Of course, it can even vary within the United States; a car at least 20 years old can be a classic if titled in Connecticut, but it must be at least 25 years old to be a classic in Virginia. A car must have been built before January 1, 1973 in order to be deemed a classic car in the United Kingdom. A car appreciating in value is however counterintuitive to everything you learned about cars since you first got your driver's license. You were told not to buy a new car because it depreciates from the moment you drive it off the dealer's lot. The average depreciation from that first-off-the-lot moment is about nine percent, and by the end of the first year, that new car's value has already depreciated some twenty percent. So, what cars instead of depreciating actually appreciate in value over time? Well, in 2012, a 1962 Ferrari 400 Superamerica Coupe Remember that laws are constantly changing and are often not uniform throughout the United States. Do not place unqualified reliance on the information in this article. Always contact legal counsel for detailed advice. If you have a particular issue, law or problem you would like to see addressed in a future column, please contact me at KLeonard@LeonardSciolla.com, or Leonard, Sciolla, Hutchison, Leonard & Tinari, LLP, 215-567-1530. photo: MACS Staff 10 Aerodinamico that had been bought in 2003 for $432,000 sold for $2,400,000. Of course, hardly any of us has the kind of money on hand to buy such a car at either price. In 2004, the Wall Street Journal published a list of fifty cars that were available in large enough quantities to be able to be bought for quite a bit less than the 1962 Ferrari (and in many cases for a lot less than the Ferrari) and suggested buying, selling, or holding onto the cars on that list. In 2012 a writer at Hemmings decided to check on how well the Wall Street Journal had done with its predictions over the intervening eight years. One of the cars suggested in the Wall Street Journal article as a buy was a 1965 Alfa Romeo Giulia Sprint GT which in 2004 was selling (in good condition) in the $9,000 to $12,000 range. Between 2004 and 2012, that car appreciated in value from the 2004 prices by some 187%. Another buy suggestion was the 1964 Pontiac GTO convertible whose value has increased over 75% since 2004. Of the thirteen cars selected as buys in the Wall Street Journal article, the value of each of them had appreciated between 2004 and 2012; though not all percentages were very dramatic. Of the eighteen cars listed as cars to sell in the Wall Street Journal article, the value of each of them between 2004 and 2012 also appreciated, anywhere from around 5% for a 1954 MG TF to almost 180% for a 1972 Maserati Ghibli SS convertible. Finally, the Wall Street Journal listed nineteen cars in the 'hold' category. In this group of cars, there were three that appreciated in value between 2004 and 2012 some 200% or better - the 1963 Chevrolet Impala SS 409, the 1967 Lamborghini 400GT 2+2, and the 1964 Porsche 356 C Cabriolet. Thus, if you select a good classic car, there is a chance that it will be worth more a decade from now, if it is maintained and not driven much. But try to resist the urge to take it out on the road; particularly a 1970 Ford Boss 302 Mustang (20042012 appreciation of 96%). ❆ ACTION * April 2014

Table of Contents for the Digital Edition of ACtion Magazine - April 2014

A/C Season Opener
Networking in the Big Easy
Getting Legal
Outlook
Freeze Frame
Leonard's Law
Virtual View
Service Port
Last Watch
By the Numbers
Cooling Corner
Industry News
Association News
Letter to the editor
New Products

ACtion Magazine - April 2014