Credit Crunch Hits Muscle Cars - WSJ

[70bird]

Some folks have enough money where this is a moot point, but there are a lot of owners of nice vehicles who bought them with a home equity line of credit, and if you get upside down on your mortgage, the shiny weekend car is going to be the first thing to go.

(I hope nobody on this site is in that situation, but living here in L.A., the hub of short-sightedness and instant gratification, people are not very good at keepng their desires in line with their pocketbooks.)

So true!
I believe the rise in muscle/collector car pricing over the past years is a direct result of people having access to the equity in their homes.
Now that real estate values are dropping and people are finding themselves upside down on their mortgages, I think we will see a flood of those "shiny weekend toys" coming up for sale for pennies on the dollar.



My brother-in-law was in the mortgage business during this "equity feeding frenzy" time, and had clients that would re-fi their homes and roll all their debt into the new loan, take out some cash or get an equity line of credit. Many would be back within a year to do it again with new debt, and thought that the appreciation of their home was endless. Boy, are those folks in a world of hurt now.