CLASSIC FORD BRONCO VERSUS S&P – CAN THIS 4×4 OUT CLIMB MARKETS?
- A FordPartsOnSale.com Study examines the classic Ford Bronco’s performance against the S&P.
- Recent auction data and the original MSRP for Broncos between 1966 and 1976 were compared with those of recent years.
- A classic Ford Bronco may be fun to drive to a car event, but it is not the best investment.
Rumors are raging right now, with Ford preparing to release a new version of the Bronco in the coming year. This is the fuel for the fire. Why not? Ford thinks it’s a cinch. SUVs of all sizes and shapes are hot commodities right now. The public’s desire for nostalgia is another factor that makes remaking the Bronco seem like a way to make money for FoMoCo. Would it be a wise investment for you, though? Would a classic Ford Bronco make a good long-term investment?
Setting the Stage
Here’s what you need to know. Some bright young people with access to historical financial data will compare investments and answer the question “What would you make more money?” The question is always the same: If you invested $1,000 in gold or sugar beets in 1944, what would have made more money today? Replace “sugarbeets or Gold” with “Apple Stock or Gold” or “Jackson Pollock Paintings or Gold” or even “classic cars and the stock market”
Unexpectedly, someone has decided to look at the investment returns of the Ford Bronco. As far as I know, this has nothing to do the Bronco returning to the market. The team at FordPartsOnSale.com recently crunched some numbers to see how much money you could have made or lost if buying a new classic Ford Bronco compared with investing in the Standard & Poor’s stock index.
Ford Bronco 1966 Ford Motor Company Photo
Go For Broke
There were indeed the interim Broncos. The ones that were painted white and driven mainly by ex-football stars. FordPartsOnSale.com isn’t talking to you about them. We’re talking original Broncos, like the smaller Broncos that Parnelli raced in Baja 1000. This fortunate coincidence of timing could actually be useful. Consider it. What do you think will happen to the value older Broncos when the new one comes out? What if the new Bronco has a retro look?
Originals made between 1966 and 1977 will (emphasis in will) appreciate.
FordPartsOnSale.com compared the original MSRP with the current value of four Ford Broncos (based on Barrett Jackson auction sales in January). According to their calculations, the highest price for a 1973 Ford Bronco was $60,500. The 1967 model sold for the lowest price of all four auctions, $31,900. The average S&P returned during the same period was around $225,000.
Ford Bronco 1974 Ford Motor Company Photo
Stock Market Winners
Instead of purchasing a new 1967 Bronco, you could have invested the $2480 MSRP into the Standard & Poor 500 Index. You would be worth nearly $185,000 now. In other words, investing in a Ford Bronco classic is not as lucrative as putting money in the stock market.
Don Heelon is the Parts Manager for FordPartsOnSale.com. He said, “We have heard from Bronco enthusiasts that resale prices on classics are through the roof.” It’s true that a Bronco sold for more than $100,000 recently.
This is pretty amazing. $100K?! That’s Ferrari money, dude.
Heelon, in response to recent auction prices that have soared, concluded: “But even if this number was huge, it would still be inferior to stocks.” Everyone knows that the stock market is not without its ups-and-downs. It turns out that investing in classic car is also not always predictable, but is much more fun than stock.
Classic Ford Bronco Information
We at 1 Automoblog towers, located in the heart of downtown Detroit, will not argue against that sentiment. FordPartsOnSale.com has created a chart to help you decide how to invest your cash.
