Reader Question: Inflection Point?

Here’s the lates reader question, along with my reply!

Thomas asks: I have two cars, a 1992 white Nissan with a five speed; four cylinder engine 103,000 miles, very clean, original owner; the other is 2010 red Honda with an automatic transmission, 10,000 miles, very clean, original owner. Have I hit the inflection point on either of these vehicles where the offer price stops dropping and starts to go up?

My reply: I think you have two gems here, regardless of their monetary value. Both of them built at the inflection point that is arguably the pinnacle of new car design. They have all the advantages of fuel injected engine tech without the over-the-top complexity of modern engine tech. They were built at just the moment in time when build quality had been approximately tripled prior to what was typical in prior years and are more durable than today’s cars because they aren’t weighed down with over-the-top complexity that renders them throw-away appliances once they are more than about ten years old.

I also suspect – and would bet – that the value of your cars and those like them is going to skyrocket in the next few years, as people are faced with the prospect of spending 30-50 percent more for a new fatwa-friendly hybrid/electric Uncle-compliant new car that will have to be thrown away after ten years and replaced with another even more expensive car when it reaches its inflection point.

Like land, they aren’t building any more of the older stuff – and when demand goes up (which it will, unless Uncle outlaws these older vehicles – which he just might) then the value will, accordingly.

I’d hoard them, if I had them.

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