Sports Car Market magazine puts a Sell recomm. on the DMC-12

[Rich]

Caught a DMC-12 investment call in the October 2016 issue of Sports Car Market magazine.

The DMC-12 summary in that month's Buy/Sell/Hold market report says Sell: "...a new generation of buyer has fallen in love with the DMC-12. We've seen prices at auction crest $40K for good stock examples....the market is buying and you should be selling."

Includes a graph of DMC-12 median selling prices at auction since 2007.

It also has a Buy recommendation out for the '88-'91 Ferrari F40, something a tad pricier than a DeLorean.

DMC-12 SCM assessment 10-16.jpg

DMC-12 assessment SCM Oct. 2016.jpg

[cdrusn]

I guess it all depends on why you own the car. Yes, its nice to know it's worth some good money but where are you going to put your money where you can drive it around when you feel like it. I doubt a daily driver nice condition car is worth $41K but from what I've seen on ebay it looks like they are still trending up around $29K. With prices hitting the stratosphere in cars like Porsche 911, 240Z, Shelby, 'Cuda the Delorean is an alternative investment that is relatively a bargain.

[Michael]

I wonder if those same people put a "sell" advisory on other cars when they just began to rise? My point is the pinnacle of values might be far away and unless you are just desparate, why sell JUST as values start to rise?

[louielouie2000]

I wonder if those same people put a "sell" advisory on other cars when they just began to rise? My point is the pinnacle of values might be far away and unless you are just desparate, why sell JUST as values start to rise?

I wondered the same thing. In the past I've long questioned if a handful of high profile sales of DeLoreans in the $40-$60k range actually meant anything. For every one of those big dollar sales, I can point to people I know firsthand who bought similar condition cars in the $10-$25k range during the same time period. However, within the past year or so I've finally become convinced that the majority of DeLoreans are indeed starting to sell for prices that are exceeding inflation. So where is the evidence to prove values have plateaud or are on the downhill? I haven't seen anything which proves that.

To me, the market is still somewhat fleshing out what the DeLorean is worth, and what sort of prestige it holds in the automotive pantheon. I'm guessing the majority of people who buy DeLoreans these days are Gen X & Gen Y. They were too young to remember or were not even born when the cocaine scandal erupted and the company collapsed; events which soiled the car for most people of that era. This effectively wipes out the stigma the DeLorean once carried. Instead, the car is a quirky underdog to a very nerdy, hipster generation who love it because of its flaws.

I guess there are some potential red flags, though. Gen X & Gen Y don't really have the wages and buying power of previous generations. They are also nowhere near as car-centric. Perhaps these point to possible limits on classic car values in the coming years? I've also noticed a market correction in cars like the air cooled 911s recently, while '90s cars such as the Supra continue to go through the roof. Is there danger the DeLorean's moment has already passed? Only time will tell I guess.

I also think a lot rides on DMC-Texas repro DeLorean project. If these cars do end up a reality and sell for 6 figures, it will undoubtedly buoy interest and values in original cars. Since we don't currently know if these cars will become a reality, talk of DeLorean values flat lining is definitely premature.

[sdg3205]

If the fall of wall street and bailout of the banks has shown us anything it's that nobody knows a damn thing when it comes to finances and investing, but they sure as hell pretend they do. I wouldn't listen to the magazine.

[Jonathan]

If the fall of wall street and bailout of the banks has shown us anything it's that nobody knows a damn thing when it comes to finances and investing, but they sure as hell pretend they do. I wouldn't listen to the magazine.

Agreed on not following this magazine's advice. "Still haunted by drug trafficking charges?" Still haunted? Who is still haunted? D'oh!

On a side note, along the lines of what Dave said about how poor we all are at predicting things (mostly because we can only base it on what has already happened, which is a flawed way of thinking), here's a good read on that sort of subject:

http://www.barnesandnoble.com/w/blac...roductInfoTabs

It's called The Black Swan by Nassim Nicholas Taleb. It's not about cars at all, but has some eye opening thoughts on seeing things coming, or rather NOT seeing things coming.

[AugustneverEnds]

If the fall of wall street and bailout of the banks has shown us anything it's that nobody knows a damn thing when it comes to finances and investing, but they sure as hell pretend they do. I wouldn't listen to the magazine.

Bulls-eye

[Rich_NYS]

In 2013/2014, did the magazine make any predictions on the direction of prices in the years following 2015 (or are they just looking at current trends?)

[DMCVegas]

I'm guessing the majority of people who buy DeLoreans these days are Gen X & Gen Y. They were too young to remember or were not even born when the cocaine scandal erupted and the company collapsed; events which soiled the car for most people of that era. This effectively wipes out the stigma the DeLorean once carried. Instead, the car is a quirky underdog to a very nerdy, hipster generation who love it because of its flaws.

I don't think that the stigma has worn away simply because many buyers are not old enough to remember the scandal. Not at all. There are plenty of sources to learn the history of the car, and hack writers such as this one that do their damnedest to perpetuate that history to make everyone as aware of it as possible. Be it for a cheap joke, or a lazy way to try and prove themselves "knowledgeable".

From my experience, I'd say that the reason the stigma has worn off is simply because younger owners just don't care. Both about the past negative press, and especially when it comes to what other people think. Which is a complete cultural departure the first generation of owners and their relationship with these cars. Back then you practically were not allowed to say you enjoyed DeLoreans lest you become shunned by other car aficionados. Which is probably why the hardcore of owners that carried the torch for the marque was a large mixture of eccentric people who like most owners now, just don't care what others think.

I guess there are some potential red flags, though. Gen X & Gen Y don't really have the wages and buying power of previous generations. They are also nowhere near as car-centric. Perhaps these point to possible limits on classic car values in the coming years? I've also noticed a market correction in cars like the air cooled 911s recently, while '90s cars such as the Supra continue to go through the roof. Is there danger the DeLorean's moment has already passed? Only time will tell I guess.

When it comes to classic car prices, there are two camps that drive values up: People who want the popular cars they saw when they were kids, and Investors that want to pump & dump marques. DeLoreans are in the former group, while Porsches & Supras tend to be in the latter. Especially with speculators whining that there are no good classics from the 70's, 80's, & 90's. So as soon as they saw cars like those, as well as RX-7s, they snatch them up, hype them, and dump the cars at inflated prices for a quick buck. But it is that first group that is always the stronger one.

As for Gen X & Gen Y/millennials not being as car-centric and not caring about the hobby, that's a load of bullshit that newspapers keep churning out. No, the younger generations do no have the same spending power, that is true. But they do indeed love cars. Just because we're not into all that "nifty-fifties" kitche doesn't mean we don't like cars. Sorry, but James Dean, Marilyn Monroe, hot rods, and drive-ins are simply not the end-all, be-all of car culture. But again, that goes back to the first group of enthusiasts that drive prices up. Just as the "Greatest Generation" saw the Duesenburgs and wanted those, so did the "Baby Boomers" want the Hot Rods and muscle cars. The popularity goes up, and then it falls back down as the generation dies off and the enthusiasm wanes. It'll eventually happen with the DeLorean as well to be sure, but probably not as bad. Even to a non-car person, the car just doesn't look that dated, and yes, has a certain amount of pop culture refresh backing it.

Here's a great article that really punches holes in the myths.
http://jalopnik.com/youth-car-cultur...ory-1728346138

[Mark D]

While I never intended to buy my DeLorean as an investment it does seem like I lucked out buying when the market was in a slump. I also follow Hagerty's online valuation tool to see how the prices are trending. Screen cap below.