A Dave Ramsey Caller Asked If Buying A Classic Muscle Car Beats Buying A Home. Here’s The Rare Case Where That Decision Might Pay Off

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Joel from Fairfax, Virginia, called into a recent episode of “The Ramsey Show” with a bold what-if: Would trading in his paid-off 2023 Ford Bronco Sport for a classic muscle car actually help his net worth?

“I know that when you buy a new car, it loses value as soon as you drive it off the lot,” Joel said. “My question is, what about restored classic muscle cars?”

Joel, 56, earns $95,000 annually, has no kids, never married, and said he got a late start on investing. He’s currently in Dave Ramsey‘s “Baby Step” 4 and contributes 25% of his income to retirement. His net worth is around $194,000, and that includes the Bronco, $25,000 in savings, and over $143,000 in his two 401(k) accounts. He currently rents and has no plans to retire.

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“I honestly don’t have any plan on retiring,” he said. “I’m just going to keep working until I pretty much can’t.”

But could a classic car change that equation? Not quite, according to co-hosts George Kamel and Ken Coleman.

“Should I invest in a classic muscle car? No,” Kamel said flatly. “Under no circumstances would we consider that an investment. It’s a liability disguised as a hobby.”

Coleman agreed, explaining that while some classic cars have sold for millions, it’s only the extremely rare ones with famous backstories, and certainly not daily drivers. “A 1962 Shelby Cobra… sold for a record $13.75 million,” he noted. “But it was the first Shelby Cobra ever made and was owned by Carroll Shelby.”

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Joel clarified he wouldn’t be flipping cars for profit; he just wanted to drive a nostalgic car like the one his dad used to own, ideally a 1971 or 1972 Buick GS convertible. He found a few in the $30,000 to $40,000 range.

“That’s a cool dream,” Kamel said. “I would just separate it from—well, two birds one stone: Get a cool classic car, drive it around, it becomes my retirement. That’s a fool’s errand.”

Instead, both co-hosts urged Joel to slow down on retirement contributions and redirect that cash toward a home. Coleman suggested trimming his investing rate from 25% down to 15% and using the difference to save up a down payment.

“Rent’s going to keep going up,” Kamel said. “If you’re 56, I would love to see you have a home by the time you retire… The housing market is also a moving target. The average home price is over $400,000. If you wait another five years, it could be $600,000.”

Joel said homes in his area already go for around half a million. That, Kamel stressed, is all the more reason to get in sooner.

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There is one scenario where a classic car might work out financially: if someone has the equipment, skills, and patience to restore and eventually sell them. In other words, to flip them like real estate. “Is it a great long-term investment? Uh, no. It isn’t a great one. And it’s only a good investment if you are flipping these cars,” Coleman said.

He also shared that he’s currently restoring a 1972 Volkswagen Karmann Ghia convertible. “It takes a lot of work,” he admitted. “I’m not going to tell you how much I’ve put into her so far.”

Still, even he admitted that the project is more about passion than payoff. “You can rack the expenses up with an old car,” Coleman said. “It’s a premium service.”

Kamel summed it up: “It truly is a hobby. I don’t think many people have made it a business or an investment. I would much rather stick to the stock market so I can retire one day.”

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This article A Dave Ramsey Caller Asked If Buying A Classic Muscle Car Beats Buying A Home. Here’s The Rare Case Where That Decision Might Pay Off originally appeared on Benzinga.com