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Hi All,

I recently came across an article by Chris Harris on Piston Heads (someone who has renewed my faith in video car reviews after years of tyre smoke git Clarkson):

RE: Price hike: PH Blog - PistonHeads

The gist of the article is that we are currently experiencing unprecedented "interesting"/classic car price inflation. F40s have added £200k to their value in two years and you can find Escort Cosworths commanding up to £50k for low miles.

All this got me thinking about pricing in relation to Alfas - specifically, though not restricted to the the mid-90s to mid-2000s V6 variants (of which one I own). What are peoples experiences of selling, buying or just browsing in relation to historical experiences? The cars that stand out for me are the 147 GTAs. Price inflation on these models (asking price inflation at any rate) seems to be gaining momentum with prices up over a third since I started becoming interested a year ago.

Allied to this I got thinking about what makes a 147 GTA so worth so much more than a comparable GTV? Neither car has racing pedigree and, arguably, the GTV is much the more special car - although I love them both equally.

Where do people see this ending? A crash? years more price inflation given that these cars are beginning to take on the asset characteristics of property and the like, or complete decimation by emission rules/driverless cars and the like.

Just as though.

Cheers
 

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Decent low mileage 147 GTA's are becoming more and more valuable. Some have recently changed hands for almost £10,000 (in stunning condition and low mileage) and I see this trend to continue. The 156 GTA has been doing the same too.

The 3.0 GTV's will also follow and agreed yes they are a very special car and also very rare but it is just not a GTA. The thing is visually (unless it is a cup) it is more or less the same as a 2.0 GTV (although a completely different car almost throughout) and it is much the same with the 3.2 GT - visually it is the same as a 1.9 / 2.0 (with both said cars apart from Brembo brakes and some very subtle differences that untrained eyes would be completely unaware of)

They will eventually follow but it will take time and once the GTA’s start to hold a strong value, people will start to look at alternatives if they can’t stretch to a GTA and the 3.0 GTV and 3.2 GT will be strong contenders and this will then push their prices up – supply and demand etc.

I do not see there really being a crash as such as the values have risen steadily and are holding their own and I see this continuing for great examples and these cars are getting rarer and rarer. I am guilty of breaking up a few but some are used up and beyond saving. Once all the sheds have gone it leaves good cars at good prices which of you ask me is fair enough.

That’s my thoughts anyway :)

Loz :thumbs:
 
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I agree with Loz, the simple answer is the GTA is a rare car in either 147 or 156 form which will command a premium. The GTV (and the GT) are great in 3.0/3.2 form but look the same as their more ordinary brethren. Look at Cups - they command a premium due to rarity and putting a Cup kit on a 3.0 GTV is not going to get you the same money as a genuine Cup.
 

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Remember that money isn't worth what it was. So a lot of this "price increase" is just old fashioned inflation.

There is also a world of difference between something that is materially rising in value (proper long term investment) and something that is simply holding its own. At the moment these cars are a pretty good performance bargain - £3 - 4K for an average one. If you pushed the price to 10K, then there is some fierce competition. If I wasn't into Alfas, would I rather have a 928, a GTA or an M3 on my drive? Heck, you can get a BMW M 540 on 06 plate for less than £10K. To any petrolhead, those are all interesting cars. All have substantial running costs.....
 

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Remember that money isn't worth what it was. So a lot of this "price increase" is just old fashioned inflation.

There is also a world of difference between something that is materially rising in value (proper long term investment) and something that is simply holding its own. At the moment these cars are a pretty good performance bargain - £3 - 4K for an average one. If you pushed the price to 10K, then there is some fierce competition. If I wasn't into Alfas, would I rather have a 928, a GTA or an M3 on my drive? Heck, you can get a BMW M 540 on 06 plate for less than £10K. To any petrolhead, those are all interesting cars. All have substantial running costs.....
Inflation maybe but old used cars do not tend to be directly affected by inflation. GTA's for 3 - 4k are going to cost you that again and then again in a blink of an eye. Trust me I see 'cheap' GTA's and there is only one reason why they are cheap!!!

Porsche 928 - I know quite a bit about them and enough to be aware that they only made one decent 928 and that was the GTS and they are £15k at the cheap end. As for E46 M3's yes, they are great but everyone has one and they hardly are going to ever hold a decent value over time unless it is a CSL.

GTA's are very rare, very different and stand out from the crowd. That is why their values are getting stronger and will continue to remain strong. Give it 4-5 years and you will all be surprised! (bold statement there I know :))

Loz :thumbs:
 

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I take a more Macro economic approach in that the base rate is only 0.5% and this will change in the short term, the current housing bubble in the South and the general feeling that good times are just around the corner. Classic car investment is a high risk investment strategy just like fine wine and when interest rates do begin their climb will fall like a brick.

On the other hand demand and supply dictate prices and with decreasing numbers of GTA 's i would argue that any GTA is/will be worth more the longer the investment is held. Further,it will be worth more as a sum of parts than as a single unit.
 

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Honestly, I think we are simply seeing the cost of fixing them being included in the price. There are three categories of car:

1) Dogs - floor price is set by the break up cost. You (and others in the same business) are chewing your way through these an eventually they will be all gone.

2) Middle ground - OK cars, but not perfect - they either eventually become dogs (and you break them), or get fixed up. Again, a declining group.

3) Good uns. Good cars, properly looked after, all upgrades done, high end of the price are low mileage.

The dogs and the middle ground are vanishing fast. However the price of a good one is still less than the price of a "dog + doing it up" - you wouldn't be breaking the dogs if it was worth restoring them for sale. When you (as a commercial operator) look at a dog and price up restoration, you know that values are heading in the right direction. I don't think we are there yet, and I'm not sure we ever will be.
 
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