OnFire wrote: At what point do you think the depreciation for clean, low mile cars will have waned, and I can pick one up without fear of further depreciation? At that point it would be a wash of an investment.Two years,? Five? Ten?
Try 20, 30, or 40 years.
IF that Mustang ever turns out to be a classic, it will be well into the future when the car buying world determines what a classic is at the time.
I'd say a similar comparison to the Mustang being mentioned here would be the 2001 - 2003 Corvette Z06. They were basically a $50K (or so) race/track car built in a popular "cool car" body. One can find those used now from the $17 - 25K range (low mileage maybe more). Is that enough depreciation for you? When will those level out, hold their value, and possibly go back up in value... who knows??
The "classic car" world is determined by who is buying the cars at the time. Twenty or thirty years from now a "classic car" might be a Honda with a fart can exhaust? Lord, I hope not!!
But, that's what the kids are driving now and they will be the ones buying up cars for nostalgia porposes someday. So, who knows what a "classic" will be then?
The muscle car world went through a bubble of its own. Those 60's Mustangs and GTOs you mentioned were worth a good bit more 5 years ago than they are today. And, those same cars could be bought for a song and a dance back in the 70's and 80's. They definitely depreciated before they became valuable.
OP, if you want to buy this Mustang because you LOVE the car and would LOVE to own one, go for it! If you want to buy it in hopes that it becomes a classic, or as an "investment", you are absolutely buying the unknown.
I am a muscle car guy myself and like most all the American/big three "cool cars" from the 60's to today. I own a 1970 Chevelle and it's almost like one of my kids.
Mine is not a "classic" in any way other than it's an old Chevelle. It's not a real SS, or numbers matching, or anything that would make it worth big bucks. And, I've made all kinds of changes to it to make it "mine". It's loud, fast, a bit obnoxious, and it pisses off old ladies. Just the way I like a muscle car.
Point being, OP, if you want to save up and own this Mustang because you absolutely love it and could see it parked in your garage forever... not to mention a car like that should be driven and to have some fun in!!... then buy it. If you're going to save up, buy the car, let it sit, and all in HOPES that you can make some money off it someday, well, I'm glad it's your money and not mine being spent on it.