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Is A Model T A Good Long Term Investment?
How do Model T's stack up as long term investments? Really not that well. Not to pick on Model T's, as they would possibly be better over time than most other makes due to their popularity. While they appear to hold their own as an inflation hedge, how do they compare to conservative investments compounded annually over the same number of years? The chart below summarizes the prices from the previous chart as if rather than buying the cars or parts, the money had either been put in a savings account with an average annual return of 3%, or else in a conservative diversified portfolio with all dividends and capital gains reinvested in the stock market.(i.e. as in an Index Mutual Fund) No allowance is made for taxes- it is assumed that the money is still invested. All of the sources I have checked regarding the stock market returns agree that the market has historically earned around 11% over the long term, and that is the rate of return used.Naturally this analysis does not take into consideration the psychic benefit of owning a Model T. (Searching, perhaps for years, for cars and parts, and traveling great distances in the process. Loading/carrying and hauling "it" home, taking it all apart, spreading it all around the garage,(or in my case spreading the parts on the kitchen table), leaving it to sit, sometimes for years, then cleaning, repairing, discovering pieces are not useable and must be replaced, derusting and painting, trying to remember where everything goes, and finally investing hundreds of man hours reassembling it and finally using or driving it. A price simply can not be put on these pleasures!)
| Source | Year | Item | Condition | Price Then | In current $ | Investment Compounded @ 3% | Investment Compounded @ 11% |
| VF0103 | 1966 | 1925 Roadster | Ruckstell,wire wheels | $1,500.00 | $ 7,913.12 | $ 4,097.86 | $ 52,128.18 |
| VF0103 | 1966 | 19-11 Frame | Original | $ 25.00 | $ 131.89 | $ 68.30 | $ 868.80 |
| VF0103 | 1966 | 1924 Sedan | "Beautiful condition" | $1,500.00 | $ 7,913.12 | $ 4,097.86 | $ 52,128.18 |
| VF0103 | 1966 | Model T PU Bed | No wood, good tailgate | $ 25.00 | $ 131.89 | $ 68.30 | $ 868.80 |
| VF0103 | 1966 | 1926 T Sedan | "Good condition for restoration" | $ 395.00 | $ 2,083.79 | $ 1,079.10 | $ 13,727.09 |
| VF0103 | 1966 | 1914 roadster | Complete restoration, AACA 1st prize | $3,600.00 | $18,991.48 | $ 9,834.86 | $ 125,107.06 |
| VF0103 | 1966 | 1920 Centerdoor | "Excellent original" | $ 900.00 | $ 4,747.87 | $ 2,458.72 | $ 31,276.91 |
| Western Auto | 1927 | Laurel-Roof 40S VIH | New | $ 67.95 | $ 646.51 | $ 587.90 | $ 138,282.40 |
| Western Auto | 1927 | Locking steering wheel | New | $ 7.95 | $ 75.64 | $ 68.78 | $ 16,178.74 |
| Western Auto | 1927 | Replacement Fenders | New | $ 9.85 | $ 93.72 | $ 85.22 | $ 20,045.35 |
| Western Auto | 1927 | Hood | New | $ 3.95 | $ 37.58 | $ 34.18 | $ 8,038.49 |
| Western Auto | 1927 | Midget motometer | New | $ 2.58 | $ 24.55 | $ 22.32 | $ 5,250.46 |
| Western Auto | 1927 | Std size motometer | New | $ 8.45 | $ 80.40 | $ 73.11 | $ 17,196.27 |
| Western Auto | 1927 | Bosch Distributor | New | $ 9.95 | $ 94.67 | $ 86.09 | $ 20,248.86 |
| Western Auto | 1927 | Kingston Carb. | New | $ 2.15 | $ 20.46 | $ 18.60 | $ 4,375.38 |
| Western Auto | 1927 | AC speedometer setup | New | $ 8.75 | $ 83.25 | $ 75.71 | $ 17,806.78 |
| Western Auto | 1927 | 26-27 Stewart Speedometer setup | New | $ 8.75 | $ 83.25 | $ 75.71 | $ 17,806.78 |
| Western Auto | 1927 | 30x3 Tire | New | $ 7.95 | $ 75.64 | $ 68.78 | $ 16,178.74 |
| Ford price list | 1915 | Exhaust Manifold | New | $ 1.00 | $ 16.59 | $ 12.34 | $ 7,119.56 |
| Ford price list | 1915 | Radiator | New | $ 20.00 | $ 331.80 | $ 246.71 | $ 142,391.20 |
Last Updated on 02/18/2001
(c) 2001 AntiqueAutoArchive