Classic muscle gets financialised

[Sprintey]

Bugger.

Our little corner of the world/internet, where we enjoy our V8s and roar along - just got put under the microscope of the financial economy.

Here is a great article by Alborz on what is coming to the classic/muscle car scene. It's a perfect storm of replacement by electrification making cars that have exhilarating involvement suddenly very much desired, and bid. We've all seen the beginnings of it, but now the investor pools and finance co's are getting in on it. Expect to see 'Classic Muscle ETF' on the NYSE at some stage... Can I hope against the trend that this article 'rings the bell' on the market top?

https://www.carexpert.com.au/opinion...inancial-sense

Mixed emotions here. It feels nice to be able to pick a trend before it happens in the finance world - but the loss will be the pricing of these cars will go way out of reach (already happening, check the covid V8 thread) for many. What was an affordable, working class way of turning liquid energy through mechanical means into pure fun will become a question of valuers. I truly enjoyed teaching my son manual on an ED XR8 Sprint, he loved it too. The cars we love have become commodified. It really feels like an end of an era.

[Freiherr]

I agree with you Sprintey, sad to see a new era in motoring.

Out of curiosity, I wonder how long it will be before the ATO changes the following:

From their website:

Capital gains tax (CGT) applies to assets you sell or dispose of, except for:

exempt assets, such as your home and car

assets you acquired before CGT started on 20*September 1985.


No doubt they are watching some of the Ford and Holden crazy auction prices and wondering about the capital gains.

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[Sprintey]

good point Freiherr - I think there's stamp duty if it's licenced? But currently the market in cars is not taxed as CGT as far as I know.

[bb_zetec]

I worry with the ever increasing value of these cars comes ever increasing insurance and registration costs.

In a few years time I can see this happening. I'm sure QLD will love to double the rego cost of a V8 even more than it is.

They undoubtedly will be taxed off the road.

These so called collectors who are paying ridiculous amounts at the moment..is it merely a pump and dump sorts thing similar to bitcoin?

I doubt they'd be true enthusiasts.

[lincolnland]

Interesting comment. Being an enthusiast led me to collecting. Over inflation of vehicle purchase prices is driven by lack of supply and high demand, with of course, finances out of being locked up for near on 2 years now