Is this a hobby to pay a shop $150K, show and sell for $75K?

We all have seen some people will have a shop build them a car and spend $100K - $150K and I even have heard up in the $200K range, trailer queens. These shops that are building these cars are top notch and I know by asking these questions I wont hurt their business at all. Then we see them on Ebay or selling private asking or thinking they will get $75K, some get that but I have heard some getting even less than that.

Is this really a hobby for those guys to spend so much and be willing to lose so much ca$h? Most trailer those cars, so they dont even enjoy driving them, right? Is it an automotive ego?

We have seen one of the most beautiful cars built this year by one of the best builders building that is on auction right now and last I checked it was at $45K (reserve not met). I think even if that car went for $100K the guy is losing big $$.

This is one example I heard of this year just wondering of any other stories or why would someone spend so much to have someone else build your car and then sell and lose so much money.

Brian

 

More money than brains,or part of a divorce settlement.

Maybe both.

 

Just like going to school i guess. Each time you sit down, (or in it) it costs X.** !

 

For that type of hobbyist, it is no different than buying a $100K+ exotic car and selling it a few years later in the $70s.

If a guy enjoys the shop build experience, then the car show deal for a couple of years with the car, more power to him.

 

About 1987 I had a customer who wanted to repaint his '66 Nova SS...but the car was originally Seafoam Green metallic. He wanted it red, but was afraid he would hurt the value, by not using the original color.

I know this is not always true, as I have been down this road before with my own collector cars.....but back to the story.

We talked about it for a week or two, as the car was being primed and blocked, and we came to these conclusions:

Most guys are not in this hobby as a business, so profit/loss is a secondary consideration.

You should be in this hobby for enjoyment. If you had to build a custom car based on the likes and dislikes of the next owner....and not your own...why the Hell are you even here???

Lastly, there are two ways to get "your money's worth". A sale for profit...or in trade, for enjoyment.

My last comment would be....If a guy is willing to build, and then sell at a loss.... It's his money to invest or squander, as he chooses.....just like you.

 

I don't think most people care all thta much about profit when it comes to a true hobby....they do it for pleasure, or to own something unique and nice maybe?

Look at ANY hobby...from model trains to s****booking to whatever. You buy the materials you need, the tools, maybe instructional videos or you go to meets and shows related to the hobby and you spend some loot...but you do it because you enjoy the hobby, not because you expect some return on your "investment", much less a profit! I've spent some coin building model cars and military equipment and I even have a friend build some for me from time to time. I do that because I like doing them, and because I like having some nice examples of my buddy's work on hand, too! I pay for the kits, the paint, the glue, etc...and I pay my buddy a couple bucks for ones he does for me. I don't expect that I'll ever sell any of my models for much, if anything...but it's a hobby...and part of it being a hobby is that I elect to spend my money (and time) persuing it...without thinking of it in terms of "return on investment".

No doubt there are probably folks who can afford to have nice, one-off custom cars built for them, and they may well enjoy the process of seeing it come together, then owning it a while and taking it places (in a trailer to keep it nice?) and displaying it. If it truly is their hobby, then they do it for the same reasons that other folks take on their particular hobbies...to enjoy a p***ion for something in a recreational manner...not to worry about what they spend or "lose" on it.

It's not something that a lot of us can relate to, maybe, but we all have our hobbies, big and small, and I think most people do them for enjoyment rather than profit???

 

(QUOTE) No doubt there are probably folks who can afford to have nice, one-off custom cars built for them, and they may well enjoy the process of seeing it come together (QUOTE)

I had some interesting experiences with people just coming into the custom automotive hobby. Most of these were folks getting involved through PT Cruisers, or Harley Davidsons. Those were attracting many newcomers. The comment that I heard repeatedly, is one I never thought about, since I have been involved most of my life. I kept hearing "We never knew that it would be so much fun to make all of the modifications", and "We thought we would not have any fun until it was finished."

I am only in this business, because I enjoy creating, or helping to create a highly individualized vehicle, but it was a shock to see others realize this unexpected part of the experience.

 

Street rodders=all things bad in hot rodding and cars in general.

 

Its the cars that are built for the sole purpose of profit that you have to look out for...

 

If you look at the profile of the guys having cars built and then selling them for 50 cents on the dollar, you'll generally see a successful businessman that has put his kids through school, made his wife happy with a nice house and great vacations. Now it's his turn to indulge in those things he missed out while he was working his *** off.

When you get to the point when you'll never see 65 again, time is far more important than money. To those "hot rodders" who bad mouth street rods, consider the fact that you're copying stuff that I did in the fifties and guys building stuff in 2030 will be wetting their pants on photos of a car I built a couple of years ago.

The more things change, the more things stay the same!

 

Some of the people who buy show rods and then sell them later, are not in it for the money. Maybe when they were growing up, they always wanted a certain car or maybe they had one and want the memories back. When they sell, they aren't affraid to take a loss. Whatever profit they might have made, they probably made in the stock market that day. They'll sell it for whatever and buy the next thing that gets 'em happy. They have that luxury.

That being said, there are those that are into hot rods just because they think they can make a quick buck and I LOVE seeing them lose money because they are in it for what I consider the wrong reason. They aren't after memories or the love of cars and will never really care about what it is they purchased and are now selling. They are in it for the quick profit and sometimes are actually gambling big, whether or not they will make money. I'd like to give them a piece of salted down sandpaper when they go to wipe away the tears after a loss.

 

Very well said. I dont get guys that complain about what other people do with their own money. Its their money, their business, its no one elses place to call them foolish.

 

It's like I have said before,...

"Money don't come with instructions !"

 

Those "evil" streetrodders have kept this hobby strong for the last 50 years!

Many think it is dollars that motivate them........Could it be that they simply love beautiful machines, and they will find a way to build them?

 

If you see a hotrod or custom as part of your investment you are probably in the wrong hobby.

Few if any hotrods or customs go up in value unless they have a history behind them and the history is what creates the value.

We see top of the line traditional cars bring big prices because they won't go out of style next month or next year.

The cars that are selling for a third of their build cost are usually the ones that were/are built with the lates trick of the week pieces that will be outdated next year. A bit like that spendy dress your wife/girlfriend just had to have last year but won't wear this year because it is out of style. It doesn't bring near the original cost when she puts it in the yard sale.
The good thing is that these cars are what keep the custom painters, builders and trimmers in business and they know someone will be along this year with a pocket full of cash and the burning desire to own a car that can win awards and have it's year in the spotlight.

 

I know if I spent that kind of cash on mine the add would start out something like this. D.F.S. (Divorce forces sale).
What the hell, let people spend there hard earned money the way there wives see fit. It sure keeps the economy going. The only ***** I have are all the idiots out there that sit in front of there T.V. sets watching the high dollar auctions and then think every piece is worth that much. It takes two people at an auction and the there are two **** cheeks for every seat!

 

So what's so bad about being able to buy a $150k car for $75k?
Those people with more money than sense/time/you-fill-in-the-blank should be applauded! They make us poor folks able to fulfill our dreams (if ya move the decimal point over two spaces it directly affects even me)

 

There is an old saying in the car hobby:

If you want to make a small fortune fooling around with old cars, start with a large fortune!!

On a serious note, most people get into the hobby because they enjoy it, not to make money at it.
And besides we all know of people that have lost money in the stock market, real estate, boats, business deals, etc. Why would hot rods be any different??

 

When I watch Barret-Jackson or any of the other auctions this is what I see... A car that sells for $60k that took $100k to build.... The opposite is rarely true...

 

The shop that I ***ociate with built a '55 Chevy for a repeat client a year ago. The build cost was just under $200,000. The owner never drove the car and only was by the shop to see the progress on 3-4 occasions. When it was finished and ready to be picked up the owner opted instead to have it shipped to Barrett-Jackson and put up for bid. The car brought $127,000. He paid the shop owner to take the car out for the auction, paid all fees including sellers premium and all ***ociated expenses. Immediately after the sale he called on the cell phone and congratulated the shop owner telling him he really appreciated the professional manner in which he took care of business.
His previous car, a '34 Vicky cost around $160 to build and brought less than $100,000 at auction. I built the entire ch***is and running gear for that one and he paid me handsomely to do it.
I suspect that sometime in the next year he'll call with an idea of something else he wants to build and the cycle will start all over again. This is a diversion for him and he enjoys just being involved. Before he retired he was invested in a high tech machinery manufacturer a**** other things and averaged between 1/2 and 1 million dollars a year income. Since retirement he makes more than he did when working by having the money to invest in land development.
I'm privilaged to know him, I get to play with things I could only dream about and make a buck or two doing it when I can contribute.

Frank

 

Ol' Skool quote of the week.

 

more like bull **** quote of the week.. Someone is talking out his ***.
Dave

 

I heard this quote last weekend " how do you make a million dollars racing cars ? Start with a billion". I think the same can be said about trailer queen customs.

 

Bwahahahahahhaha too true!!

Yeah I used to resent those guys, "chainers", then I grew up. They employ a helluva lot of cool guys on this board, so they're great in my book! Not to mention, if they weren't car guys they wouldn't spend all that cash in the first place. Like someone else said, they spent their time being successful rather than expanding their car skills. To make crazy money like that it takes a helluva lotta time at the office!
They're getting older and want a car they couldn't possibly build themselves and can afford it, so god bless them. I only hope I'd ever have the means to do the same.

Its just commissioning a piece of artwork except they get to specify everything, which sounds like a lotta fun to me!

After losing friends and a few trips to the hospital, I started to understand why someone would want a car sooner than later. No guarantees you'll be here tomorrow.

 

I think the "more money than brains" is up there too on rediculous quotes.

I know several very wealthy people, and they didnt get there by being dumb. They are no different than you and I, they just have more money to spend on their toys than others do. It doesnt make them foolish. They have the money to spend, and they buy what they like, and its no ones business to state that they paid too much for something. *****ing about wealthy people wont get you anywhere, and it certainly wont put you on the path of earning wealth.

 

I don't really understand the question here.

Millions of people world wide buy $20-$30,000 cars every year as daily drivers. None of them are worth more than s**** in 10 years or less.
And there are others that pay $50, 000 or more for their new junk.
I saw an ad in the paper today for a new BMW lease for somewhere in the $30,000 range for 2 years....then give it back.. That's more than I have to pay on my HOUSE in 2 years..

If a guy has a car built for $150K and shows it, drives it, etc for a couple years, and sells it for half, #1 he has the $$ and does not care, and #2 he is still better off doing that than buying something new.

The shops that build for Barret Jackson, etc, and take a loss probably make more money generated from the publicity then they will ever make on one car.

Think of a basic business technique, the loss-leader, but on a bigger scale.

 

Where do you think all of the money comes from to make the repro parts we use? If it were only the demand of backyard builders we would be in real trouble. All of the engineering and technology that goes into those trailer queens has created a major business that we all benefit from. Street rodders, the term that surfaced in the early 70's, saved a lot of the iron we find today as barn finds. I remember when the restorers used to say the same thing about Hot Rods. "Why would you want to spend all that money on a car that you won't be able to sell for very much." If you worry about what you spend on a car then you need to find a new hobby.

 

Could this be the same principle behind myself as a shop owner spending six months, a year, two years building my own personal car with what little spare time I have only to finish it, drive it for a few months and sell it for way less than it's worth or time invested. Then start over. Because, I live for the build!

 

You can thank internet websites for that,,before ther was more backyard engineering,,more people being creative,,now its all just a world of magazine cover copies,,build yer 32 hotrod drop all that money,,but then the new thing is
and Avanti Hemi ,,and yer **** outta luck

 

a new b*** boat, 20k, new pickup to pull it 30k, fishing gear 5k, lake cabin 75k, now this hobby is no diff from many that guys have, i fish at long john silvers cast in a 10 spot and get a 6 pc deal ... go figure cars are no different, you like it you do it , just at your level ...............