| A common misunderstanding about car pricing | | | | predictable market. |
| gives speculators the upper hand in realizing real | | | | Then we have project vehicles, classic cars from |
| value for their money. In analyzing the true nature | | | | the early 1900s to the previously new car that |
| of car pricing, you can see where the real | | | | gets into an accident pulling out of the new car |
| benefits are won and lost. | | | | store lot. There are a million things that can |
| New cars are priced based on a hard cost | | | | happen to a vehicle in its lifetime to make it end |
| platform that varies slightly depending on the price | | | | up a project car; fires, floods, accidents, |
| of steel, plastics, glass, labor and the many other | | | | shootouts, bad transmissions, engines blown, and |
| components that make up an automobile. This | | | | even a failed customizing attempt. It could have |
| gives the new vehicles a fairly predictable price | | | | just been a very good car that has been around |
| point. | | | | forever and wound up in a field or in a barn |
| Used cars have a more variable pricing structure | | | | somewhere. When it comes to putting a real hard |
| depending on the owners situation; a leasing or | | | | fast value on a project vehicle it gets a little |
| lending institution that needs to liquidate to cover | | | | cloudy. Some owners will have a low perception |
| a loan gone bad or a matured lease, a rental | | | | of its value for whatever reason, other owners |
| company dumping vehicles that have reached a | | | | will overprice the same car or truck for different |
| mileage or year plateau, auto dealers covering | | | | reasons. Some buyers will think that a vehicle is |
| overheads and sales commissions or an individual | | | | worth nothing while another gives it more credit. |
| that is looking to replace their current vehicle. | | | | The wonderful thing about project cars is that |
| Depending on their needs, they will be selling the | | | | there is a wide range of cost perception between |
| vehicle at or around a reasonably small price | | | | buyers and sellers. This volatility gives speculators |
| range, banks and other lending institutions at the | | | | great opportunities in some instances and sellers |
| low end of the price spectrum and dealers | | | | great opportunities in others. I have put this |
| struggling to get top dollar. Even though there is a | | | | concept to work for many years myself and it |
| range of value, it is still a reasonably tight and | | | | has paid great dividends. |