New proposed House bill to decrease the value of classic cars?

[frapjap]

I don't really see this being a problem for the industry, but some folks think otherwise. If anything, I'd much rather drive one of these cars with the knowledge that I could easily attain another one in the event of an accident. Plus, its like buying a resto mod without having to do all of the work yourself. If these bad boys come in around 30,000-45,000 bucks, I'd be all in to get a hold of one! Having a 'classic' without worrying too badly about bug guts and rock chips in the paint would be awesome.


http://gearheads.org/new-house-bill-may ... -industry/

Everyone loves American muscle cars of the 1960’s and 70’s, but a new bill may pass soon that could kill the value of some of the most beloved classic cars. I’m afraid it is going to flood the market with so many well-built cloned or replica cars that it will water down the values of the legit high-end original classic hot-rods and American muscle cars.

Let’s examine the facts first and you will see what I’m talking about; A new bill (H.R. 2675) introduced this month in the House of Representatives could allow small companies to build fully drivable classic car replicas. This bill would also keep companies proposing to build these cars from meeting the same expensive safety and emissions test that the major auto manufacturers are required to meet. If this bill passes, it will bring about new rules for these registered companies allowing them to produce and sell up to 500 finished and ready to drive cars in the US each year. The big difference is now they will carry a federally issued VIN (Vehicle Identification Number).

This new bill is co-sponsored by Reps. Mark Mullins (R-Okla.) and Gene Green (D-Texas) and supported by the Specialty Equipment Market Association (SEMA), a group that represents the kit car and aftermarket parts industry. H.R. 2675 would also require these vehicles to be powered by modern engines already certified by their suppliers to pass current emissions standards, but with the ability to be exempt from the more stringent federal safety regulations.

SEMA’s senior director of federal government affairs (Stuart Gosswein) said previous attempts to create this type of low volume classification have been stymied in part by opposition from some of the major automakers. He also said that allowing only classics (25 years and older) and not unique designs should make it more palatable for the industry to accept. The cars must be exact visual replicas of the vehicles and their original auto manufacturers must license the designs.

Even though one advantage being promoted is the possible thousands of job this new bill could create, Gosswein was quoted as saying “The impact on the auto industry will be small, eventually accounting for only about 1500 cars a year”.

Now this begins my argument, this new bill could be a classic car market killer because if you look at recent trends the classic and muscle car prices and popularity has been on the rise. Allowing these new companies to start building replicas of American classic car may indeed flood the market and water down the value of the original cars. Why pay upwards of $200,000 for an all original classic muscle car when you will be able to purchase an exact replica for a fraction of the cost. If collectors stop paying premiums for original stuff, the value will drop and kill the classic car auction market. Auction companies such as Barrett Jackson and Mecum will definitely feel the impact of such a market shift.

Replicas and clones have been doing very well at the car auctions, however, those cars are built from original cars and cloned as a more rare or desirable car….i.e. a Shelby GT500 Mustang, Plymouth Hemi Cuda, or a Chevy COPO Camaro. Those cars in an all original, numbers matching state have been fetching premium prices north of six figures for a while now. But these cars in a replica or “Clone” as their called, have been bringing good prices that are trending upward.

Industry experts are predicting that potentially dozens of new companies may begin building new cars like it was in pre-World War II period before the big three took over (Ford, GM, and Chrysler).

I’m not saying that some fine replicas won’t be built, but at what cost to the market? If 15-20 companies pop up and begin building good quality classics such as Corvettes, Mustangs, and Camaros, how will the classic car market react to these new vehicles hitting the streets? My grandfather use to refer to the old classics as “They are only original once” and that statement is still true today. Maybe I’m wrong and a bold move like this will cause collectors to hold on to the originals and drive the price of those car higher, but it’s a risky gamble to assume that.

If you own an all original classic car you may be faced with a decision soon….as Kenny Rogers said in the song The Gambler, “You’ve got to know when to hold ‘em, know when to fold ‘em, know when to walk away, know when to run”. He was talking about gamb|ing at the p0ker table, but how will you gamble with your classic muscle car?

Currently the bill (H.R. 2675) awaits further action from the House Committee on Energy and Commerce, so only time will tell how the passing of this bill will affect the collector car market.


TLDR: Companies will be allowed to license old body styles of muscle cars to new manufacturers who will in turn, put in modern engines, suspension, and safety equipment. Classic car analysts think they'll take a hit in depreciation of an actual classic.

[Bubba1]

Interesting article, but I disagree with the analysts, I think the "tribute" cars will mostly help the original's value. But the impact of increase or decrease much depends on the model. For example, boutique companies have been building modern reproductions of the Shelby cobra for decades, with zero impact to the originals. I'm also seen many modern resto-classics like 1st gen corvettes with modern underpinnings. Again, no impact on the originals. An example where the tribute car might end up hurting the original? Meyers Manx, an uber cheap old VW beetle based dune buggy. They were cool looking but not particularly good cars. I could see a better reproduction hurting the value of the original.

[frapjap]

Thats a car that is unlike to to be built, too!

I think these guys are making a commotion of the Chargers, Mustangs, Camaros, Barracudas, and Novas losing value due to 'fakes.'

You're right though, the impact so far is nil. I wish folks would use the cars for their intended purpose instead of just letting them sit in garages accumulating value and trading like stocks.

[Hijacker]

I think there's too much chicken little going on in that article. Plenty of kit car manufacturers out there have not impacted the overall value of the original cars. The only people that can afford to buy the originals will still buy the original cars over a kit car repro because they want the bragging rights. All the increase in kit car volume will do is let the peasants get a taste of what the rich have had for a long while.

How much do you wanna bet the author of the article is in some way related to one of the big auction houses?

[OriginalWheelman]

Maybe I'll start manufacturing self driving electric muscle cars. That should piss a lot of people off.

[Desert Rat]

The outrage over this is stupid. Car buffs should be elated at this that replica drivers can now be built that emulate the classics, but with modern drivetrains that you can take on the road and not have to lose a quarter million dollars because it gets a stone chip in the paint.

It will have no bearing on the value of the originals.

[float_6969]

Yea, I don't agree with the analysis at all. This isn't a new concept at all, it's just not legal in the US. The first vehicle I thought of was this;
http://www.eaglegb.com/

Jeremey raved about it in that episode too.

[PapaSmurf2k3]

The outrage over this is stupid. Car buffs should be elated at this that replica drivers can now be built that emulate the classics, but with modern drivetrains that you can take on the road and not have to lose a quarter million dollars because it gets a stone chip in the paint.

It will have no bearing on the value of the originals.

Those were my thoughts exactly.

[MinisterofDOOM]

The thing is: replicas are ALREADY a thing in the US, and it doesn't matter. Anyone who buys classics for any real amount of money knows how to identify a replica from the real thing. Having Cobra replicas on the market doesn't diminish the value of REAL Cobras, because they're NOT REAL COBRAS. In fact, if anything, it makes the real ones more desirable. The first thought that goes through my head when I see a (good) Cobra replica is "Ooooh, that's not real, is it?!" and then of course I get up close and realize it most certainly is not.

Of course, I'd never confuse an Eagle for an actual E-type, but that's not the point. The point is: Jaguar stopped building XK-powered awesomeness decades ago, but that doesn't mean many many people wouldn't still like the opportunity to own one.