The XJS is a good investment Part 3
Here is the final thought on this three-week topic. Now let us address why some classics increase in value and others do not. The first thing is the sedan vs the sports car. The sedan was nearly always designed for the family car. And if you added the in-laws and the family dog you bought a station wagon. Which was named after the train stations where the men were commuting to the metro areas and their wife would drop them off in the morning before returning to get the kids together for the day and pick him up in the evening after running around all day to do things that three people should have been doing.
So the sedan unless it is a Tucker where there were only 50 made, are not investments. Now, what about Luxury cars? You say certainly you would think they would increase in value as they are so expensive. No way Jose. Luxury items are just that. People buy them because they are a status symbol and they want them. I shared with you my personal story where my late wife paid $165K for a new Rolls Silver Spirit, with only 28, 000 miles on I was only able to get $26,500. This is the result of luxury items. That adding to it being a sedan and mass-produced, will not be an investment. Now one of my other Rolls was an investment because there were only nine made with left-hand drive in 1958. I had it for several years and sold it to a dealer because I needed fast cash and he paid me $20K more than I paid him for it. Another example of common sedans that are classics that were mass-produced vs rare ones is the Mercedes M-100s which had the 6.3 litre engine and was made for the 600s and 6.3 models between 1963 and 1981.
Now both were very rare. Only 2,677 of the six hundred were ever made. Around 1,800 of the SWB “short wheelbase” and the rest were LWB “long wheelbase” For example, I sold my 1972 SWB in need of complete restoration to Peter Kumar at Gullwing for $22k back around 2008, and today restored is valued at $250k all day. I have no info on the last LWB that was sold but would be more all things considered. My elderly friend here in Miami who I am looking after right now sold his LWB to Peter around the same time for $48k but was in great shape but all seals and rubber needed replacement cost around $38k.
Tomorrow I am selling my friend Jacks' 1978 6.9 in need of restoration for $4,400 and just sold the other one he had here last week for $3,500. Now the 6.9 is a rare car where only 7,380 of those were made between 1975 and 1980. So you would think it would bring more money! Not at all. The main thing to consider the increased value of a classic is three simple words. Supply and demand. So there may only be a low number available, but if the buyers are not raising their paddle at the auctions, then they just fall through the cracks.
What I am going to address here today is how and why the XJS is a good investment as it relates to all classic cars that may or may not increase in value. The XJS the same as the Porsche 928 was always the two cars in particular that were nearly the cause for war between the novice of the XKE and the 911. As Porsches 911 was the end-all for the brand, so was the XKE was for Jaguar.
When Jaguar rolled out the XJS in 1975, the XKE crowd suddenly were lost in time and thought that they were the crowd that beheaded King Louis and Marie Antoinette! Similarly in 1977, When the 928 was introduced and the 911 production came to a halt, many people were ready to get their six-shooters and guillotine in tow to show Porsche just how much they appreciated this decision. And of course, if you bought an XJS or 928, the novice would give you the look as if they knew you were the guy who mugged their mother! Speaking of which a 94 XJS sold at Barrett Jackson in Palm Beach four years ago at $20k that needed new seats, carpet, and some service to make it a 7 and shocked all of us in the XJS world. Soon after that sale, a shop owner I know sold two for $35K each with perfect paint, original engines, new seats, and carpet, and the XJS has been moving up since.
Whereas the last one sold at auction in Europe for $73k. You will notice that there are still some great buys out there if you know what you are doing but please do not pay too much, thinking that you can replace the kid's college fund that you gambled with on the last great deal. Because we are XJS specialists, we are always ahead even if we pay a premium. So the bottom line is yes the XJS is a good investment if you are diligent in your acquisition. And Jay Leno always says, if you buy it to enjoy and it increases in value, you have done well. But if not, you still have had the time of your life. And that is priceless. Now as my father would say “ That’s the whole thing in a nut shell”