How is the economy affecting hotrodding?

"The inescapable truth is, we ain't gonna need any hot rods in assisted living or Great Hereafter. And that's only about 10 to 15 years from now for thousands of us. Just go to an NSRA event and look at all the old fat guys sitting in lawn chairs. "

I've been saying this for a couple of years now. Although my timing sucks, I'm usually not that far off with stuff. I'm no genius, but if it makes absolutely no sense to me and everyone you talk to, sooner or later people catch on. I'm a firm believer in demographics. I'm 37 and I can tell you the number of people my age in the hobby is pretty small. Most of my rod and kustom friends are 15-20 years older than me so I'm pretty out of place. As for the pampered generation "Y"s coming up behind me the future looks even worse. If they want top dollar when they start working, don't want to pay their dues and insist on a work/life balance. Do you really think they're going to buy your project car and spend the next 2 years on their back on a garage floor building it? Doubtful. As a friend eloquently said "all you understand is here's the fucking key"

Certain parts of the hobby like streed rods and some hot rods will always be popular. As for stock '30s to early '50s vehicles, forgetaboutit. Who's going to pay $100K for a stock Merc or Ford "woodie" wagon or a '36 Packard convertible at today's prices in 8-10 years. Good luck. They don't drive like a modern car stock.

There will be a lot of these coming on the market, it's happening now. Some sons/daughters may appreciate their father's hobby, but as soon as they get a hold of that Deuce roadster all it will need is a "For Sale" sign. They'd rather have the money for other things. That's just been my experience. Been to any estate sales recently?

The good news is that prices will get back to reality. Did you really think a "restorable" Ford Crestliner wheel was worth $1500, or that '57 Chevy rag was worth $150,000. I think for most of us here it will be a benefit unless you need to sell fast.

 

Sounds like Government 'Economics 101' to me.

 

I could not have said it better myself...
Thank you.

 

For me business has dropped (I own a small restoration/paint shop), The car show/flea market scene around here sucks and you have some guy trying to sell you a $100 part for $20 so he has gas money to get home.

If all else fails, I'll go back to repo'ing cars, boats etc...

I'll still build my personal projects and won't be affected.
I have no credit cards, I rent my house(that the landlord eats the bill on whatever shits the bed.) When real estate drops more then I'll buy.

My only bills are the norm, electric, food, one Modern Iron payment(to haul the kids around)

I don't make alot of money, the wife stays home with the kids and we still manage to do OK, with the occasional splurge.

A friend told me "never buy anything you don't have the cash in your pocket for" when I was 13 or 14 yrs old and that thought has stuck with me thru the years (I'm 29 now) He also told me if you can't afford your rent/mortgage in one paycheck then you need to reconsider where you live.

I do think the economy will get better, but I've already noticed a mass influx of cars for sale.

 

Remember the Ferrari boom/bust in the 90's? And the "brass cars" that led the markets in the 60's have lost big real-value since then.

I disagree with this statement. Have you seen what common brass '12 and earlier T's go for if they are really nice? $25-$30,000! And even more for rarities. I believe a real two lever '09 T would bring $100k right now. There are pre '09 Fords that have brought 6 digits lately. Price a Winton, early Rolls, any big brass car for that matter, and you will see these cars are very strong on value. That top quality stuff, the 1 of 10,000 or even better stuff has been and always will be good property. Crocker motorcycles now bring 6 digits, for example. (The twins, of course) Cyclones....probably $200k or more. The common stuff will suffer most, like a Model A Ford, glass cars, anything that is relatively plentiful. The problem is that most of us don't own anything that is really super rare and also highly desirable to well-heeled collectors. It is a good time to buy some things, though. Want a Harley? The papers are full of them now that the bubble has burst.
Bob

 

And this is why the American dream is still alive. You just have to be willing to work and live within your means.

The American dream doesn't necessarily garuntee a boat, big house, and new tits for the old lady. It does suggest that if you are willing to work and be financially modest, you can do ok.

I've played the CC game, and it hurts. I'm paying that off now. Now I only pay for things I have cash for.

I am fortunate enough to be in a recession neutral industry and am doing ok... but I keep seeing shit going for cheaper and cheaper. I just bought a 2500$ welding rig for 1600 bucks (never been used!) last week... Craigslist is full of deals.

 

Well, I don't claim to be an expert on "two lever '09 whatevers". And yes, you are correct, rare BlackHawk quality cars are always gonna bring sound money. But I watch very nice restored stock model-T's and A's selling every week on e-bay for 1/3 what it cost to restore one - and far less than what they brought twenty years ago in adjusted dollars

My point was that as the market ages and tastes change with collectors and casual investors, so the market peaks of certain vehicle types rise and fall. Right now many uniformed wealthy posers have to have a hot rod - and informed posers will pay nose bleed money for a "period perfect" hot rod - for now.

 

I've been expecting this for some time. This country, both its government and its people have been living beyond its means for sometime. I do a lot of reading and no matter what you think about the media, the signs have been there long before the recent headlines proclaimed it. Your people can not have a flat or even negative savings rate. You can not borrow 600 billion dollars from foreign countries (enemies?) for a war and give large tax cuts at the same time. You can not collect social security taxes, spend the money and issue paper IOU's. In 2018 the Social Security Trust Fund will pay out more than it collects, those IOU's will need to be cashed in to pay the retiring baby boomers. Where will it come from? Higher taxes? Higher retirement age? Smaller defense budgets? Something will have to give. The numbers do not lie. And the Social Security mess is nothing compared to the huge Medicare problem. Those of you that think you can ride this out without any pain are kidding yourself. Everyone of us will suffer, some terribly, but it is unavoidable. The last two or three generations will feel it the worst, because they have never known what it's like to be scaping the bottom. Most of the people on this forum will do better that most because of the skills they have to build things from nothing, make do with cast off parts, and perservere without comfort and luxury. We all share some of the blame for electing leaders that are wasting our tax dollars, short sighted with our energy policy, reckless with our foreign policy, lax in the regulation of greed in our financial markets, and blind to the future that is now staring us in the face. Boomers and X'ers can plan on a longer work life. I feel sorry the most for everyone's kids because they will be the ones to bear this burden for years to come, and they may not have the tools to do it. The American dream can survive this but we all will have to wake up first before we can dream again.

 

Very good observations.

 

You hit the nail on the head there!

Too many people my age (the 25-34 age demographic) are buying new cars , and filling up their apartments with trendy electronics etc while only making 8-10 bucks an hour.

We made $30K in 1999 for the year. Not a lot of money for a yearly income, but some careful spending & planning we always had extra money at the end of the month.

We used our income tax refund to buy household wares, so we wouldn't be stuck with high interest rates from in house financing.

 

we are being screwed by the rich..warren buffet said it best"its class war,and my class is winning"...says it all with no political or economic interpretation at all so lets all get back to building cars .hot rods and customs have always been a working class past time and career lets keep it that way so we can afford them in the future

 

I have to agree - you are on a roll. In January things here were goin great and I could afford that payment on the used bike I wanted along with the house I have had for just over a year. No sooner than sending out the first payment on that used bike, I get fired. Talk about a kick in the shorts. Its been a month and still no job. Unemployment keeps the house and so far that used bike, but for how long - I have no clue. Not only are sales of everything down in this area but so are available jobs. I have never had to actually search for a job and I can honestly say it pulls a guy down. But chin up and go, every day. I will win!

 

Maybe this will help keep gas in our tanks and the tires burning??? How about we stop buying Gas from These companies that import Middle Eastern oil

Shell.......................... 205,742,000 barrels
Chevron/Texaco.........144,332,000 barrels
Exxon /Mobil..............130,082,000 barrels
Marathon/Speedway..117,740,000 barrels
Amoco..........................62,231,000 barrels

Citgo Gas comes from South America, from a Dictator who hates Americans.
Do the math at $30/barrel, these imports amount to over $18 BILLION! (Oil is now $90-$95 a barrel)
The latest price is a record high ($105.00 a barrel)..

And buy from the ones that DO NOT import Middle Eastern oil:

Sunoco................ 0 barrels
Conoco................ 0 barrels
Sinclair................ 0 barrels
BP/Phillips.......... 0 barrels
Hess.................... 0 barrels
ARC0. .................. 0 barrels
Also: Pilot, Flying J, Love's, RaceTrac, Valero

All of this information is available from the Department of Energy
and each is required to state where they get their oil and how much
they are importing.

 

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Real hotrodders will always be hotrodders, we have more ingenuity then the posers that have risen in the last couple years. Its not a hobby its our lifestyle and we can usually figure out a way to make it happen. Some of the best advice I have used in my life is : PAY AS YOU GO AND YOU WILL NEVER OWE...........those are words to live by no matter what your interest.

Real hotrodders know how to budget, barter, and build and use it in every aspect of life not just their hobby.

Thats my 2 cents.....................RP

 

That is a very interesting read. There are countless stories like this around the country.
As far as the car scene economy goes- My bet is that ALL of this summers major events will have record attendance again this year. Tourism may be a bit weak but the car scene is as strong as ever. Maybe people are not buying cars but they sure as heck are driving them.