March 31, 2009
Long-Term Prediction

Why stop at helping companies stay afloat? We obviously know better than they do what the consumer wants:

Obama has ordered GM and Chrysler to come up with a cost and product structure that focuses on making money on small, fuel-efficient cars, traditionally a losing proposition for U.S. automakers.

My advice: find the most powerful car that fits your needs and buy it now. The days of a 250 hp family sedan are over. Performance cars with 300+ hp are going to lead them into extinction. My prediction: when the economy recovers, say in 3-5 years, there will be an explosion in classic car values that'll make the runup in the mid-80s look like a wet bottle rocket.

Because, now that the government is deciding what is and is not a desirable car, the only place to turn for what you like will be the classic car market. Since there's no increasing supply there, prices must go up. They're available new or depreciating fast right now, but once people realize the best they're going to get from now on is a Smart, that'll change in a great big hurry. Buy low, because in five years you'll definitely be able to sell high.

Posted by scott at March 31, 2009 11:04 AM

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