Insurance Value

[svt2205]

So what do you pay a year for insurance? And do you have to play games if something happens? I pay almost nothing and if the car is totaled or stolen, I get a check for the agreed upon value.

Why is a limited use, a screw job? Especially for cars that aren't driven much. I average 500 miles per year these days...

[Guest]

Flipping through some of my old Muscle Mustangs and Fast Fords magazines a few days ago.....a 1994 issue, as I recall....Mustang Mail had a letter about the 93 or 94 Cobra. If you all remember correctly some 93 Cobras were still on the car lots in 94!!!! Brand new ones, not used Cobras. The author of the letter wanted to know which car would make the best investment over time, the last of the Fox bodies or the new '94 Cobra.

The response from Muscle Mustangs and Fast Fords to his question??? "If you've got $20,000 just to 'invest' we can think of alot more ways to invest it and make more money in the long run than buying a car." The magazine even went on to say buy it and drive the wheels off it. I laughed and laughed.

How many of you really believe your Cobra is worth more than $20,000 now, 13 years later? Give it another 12 or 13 years and maybe it will be???

Like I wrote earlier, to you, a collector/enthusiast it is worth that much.

BTW, some Cobras did sell for more than $20,000 new.

[phorty]

If you think about, they're right. It wasn't a good investment. If you pay $20K in 1993, and its worth $20 13 years later then its a bad investment. If you figure an okay investment that averages 4%/year, it would be worth over $33K in 13 years. Figure a good investment that averages 6%/year, that would be over $42K in 13 years. The only argument is that you get to enjoy your investment and use it as transportation (not much if you want it to be worth $20K now) and that has some value. But purely as an investment, cars are not the way to go. Don't tell my girlfriend that however, that's how I justified buying mine!