Does Geography Affect Value?

[Brock Samson]

 

seems things here in calif. are simply more expensive then elsewhere...
so lets take a hypothetical situation,.. like this guy selling his '72 on the thread below this one... with a W.I.W? question...


                        http://www.dodgecharger.com/forum/index.php/topic,30414.0.html

  alot of folks say it's a $5K car cause it's a 318,.. but i bet here in the Bay Area it's a 7-10 K car just cause the market would pay more cause good chargers are rare..
folks say the NADA prices are High...  So on e-pray are prices avaraged and discount location?.. 
travis travels the country pickin up chargers far and wide - though i don't think he's been out here...
i'm very curious what his and others experiances are,.. cause often in these What's It Worth threads i think to my self it would surely be worth more here....  Your thoughts?..

[RD]

geography definitely affects the value.  the more people you have desiring a product and that product is in limited quantities causes the value to go up for that product.  Scarcity + Demand = High Value  (you have to thank my econ. professor for that one).

Prime example.  A 440 engine (long block) on the east coast is a $600-900 purchase.  A 440 engine (long block) in Kansas is a $150-$450 dollar purchase.  East Coast has a higher population of mopar maniacs than Kansas does.  Hence, the demand for such a product is not as great in Kansas, so the sellers have to lower their price in order to peddle their goods.

This is why I can find mopars all over the place for cheap in Kansas, whereas those on the east coast would be paying 300-400% more than what I pay for the same product.

[bull]

I think geography matters in local sales like craigslist and in classified ads but national ads don't seem to be effected in the least IMO (Ebay and Hemmings, etc.).

[41husk]

I would agree georaphy makes a difference, but the bottom line is, you can ask 10k for a 318 72 Charger, but its only worth 19k if someone pays that!  I believe thats how BJ is killing the hobby.

[Mike DC]

I don't think Cali is that expensive. 

I think much of the rural southwest is abnormally cheap, but Cali has begun to raise up closer to the levels of the eastern half of the country.

[moparsons]

We should also factor in how geography plays a role in the condition of the car. For instance, here in WV, everything is very rusty making the few  solid ones worth a fortune.

[Drache]

In Western Canada that car would sell for $10,000 in a heartbeat! I've personally seen chargers in that shape with 318's sell for upwards of $16,000! One province over in Alberta, the car would sell for less but not too much.

[hemihead]

Yes I think location plays a role in value as here in Pennsylvania we also have rust issues and sellers here tend to think that ANYTHING from 64 - 74 is worth BIG dollars. Even 4 drs . But if you read the description of the car being sold there are more reasons why that car is only worth $ 5 k. Bench seat, column shift,needs paint work,electrical work,dash repair,A/C repair,body repair in the lower fenders. Plus it is a basic transportation model, not a Rallye.And the market for a 3rd Gen is still so very much lower than the 2nd Gens( except for some cars).

[no318]

Also keep in mind that wages are proportional to cost of living.  It costs more to live in Cali than in the midwest.  Wages are typically higher there as well.  10K for a project is a bigger deal if you annual income is 30-40k year ve 80-100k/year.  It is all relative. 

I also think that big dollar cars are "worth the cost" to transport accross the US. It is NOT usually "worth it" to spend $1500 transporting a 73 charger 318 that you can buy on ebay for $2500.  USUALLY.

Just my opinion.

[Brock Samson]

gas prices here are the highest in the nation,.. all the costs follow accordingly... milk is higher,.. homes are higher, hookers cost more...
err,.. 
seriously though, one thing in the west coast's favor is the rust free sheet meyal that can be found a few miles inland, cars kept on the coast proper, of course are rusty rusty rusty...

[NHCharger]

I also agree that location helps determine the price. The amount of salt they use here on the roads during the winter is ridiculous. Most cars older than 10 years that are driven in the winter have rust issues.

[HITMAN 149]

def agree geography hurts or helps!!! i'm in jersey, close to NYC & the "metropolitan tri state area"(NY, NJ, CT) and the closer you are to here....things are pricier compared to things in bum-F*@K no-where land (no offense to anyone who lives in BUM-F*@K no-where land!!! LOL)