Specialty Auto Insurance: The Foreign Truck Disadvantage

Have you ever wondered why America is the leading producer in the pickup truck market? Well there’s actually a pretty good reason that goes far beyond American craftsmanship and quality. In fact, one of the main reason’s America has maintained a strong monopoly on light duty truck production over the years is a little piece of legislature passed by Lyndon B. Johnson during the Cold War known as the “chicken tax”.

The Chicken Tax is a 25 percent tariff on a number of foreign goods such as starch, alcohol and light trucks, which was America’s response to taxes imposed by France, West Germany and other nations on poultry goods imported from the United States. Over time the tax on potato starch, dextrin, and brandy were lifted however the statute imposing the 25 percent tax on light trucks remains to this day. The tariff directly affected any country seeking to bring light trucks into the U.S., including Japanese auto makers and other smaller Asian and European vehicle producers looking to gain a foothold in the American auto market. While many have attempted to contest and repeal the tariff, U.S. legislature continues to keep the policy in place to protect U.S. domestic automakers from foreign competition in truck production.

As such, the tax remains one of the largest hurdles for foreign vehicle producers because it puts these companies at a distinct pricing disadvantage. Foreign automakers would have to increase the market prices of any truck models nearly $15,000 to compete with the average American truck maker’s return. Instead most foreign automakers choose to focus on expanding their product lines in every other available market sector, from compacts to SUVs and sports cars. Others, like Toyota, have taken to establishing North American production plants where they can produce trucks on American soil to avoid the tariff. While Toyota has done relatively well in marketing and branding of their Tacoma and Tundra truck platforms, American Companies Ford and General Motors continue to split over 60 percent of the truck market.

Some industry analysts suggest that the Chicken Tax has actually created a lag in technical and design innovation when it comes to light truck platforms which has adversely affected the overall quality of modern pickup truck offerings. Perhaps someday we will have the opportunity to see what companies like Mercedes and BMW would dream up in the form of a luxury pickup truck line, but as of now truck enthusiasts have roughly a hundred years of American trucks to collect, restore and treasure.

At Condon Skelly, we understand the importance of protecting your collectible, antique, classic, muscle custom and exotic cars is. That’s why we specialize in offering complete Specialty Auto Insurance. We’re a group of collectors, enthusiasts, and professionals who specialize in insuring all types of collector vehicles. Our team is as passionate about protecting your vehicles as you are about collecting them. We can help you secure affordable, industry-leading specialty auto insurance coverage to protect your classic, antique, or exotic vehicles. For more information, contact our Specialty Auto Insurance experts today at (866) 291-5694.

Collector Auto Insurance: More Quirky Cars Collectors Love

Auto collecting isn’t always about getting the best, the fastest, or even the most stylish vehicles ever made. Collectors choose their vehicles for countless reasons, sometimes for emotional investment other times for the potential to turn a profit. Jay Leno himself consistently advises collectors to think beyond the money and collect vehicles you love, whether they are ordinary, plain, simple or quirky or even down right flops.

Here are a few more understated collectable vehicles that you might never have thought to want:

• Little Known American Brands: When you think American autos you undoubtedly think Chrystler, Chevy, Ford, GM and others which have survived the sands of time to become the cornerstones of the American auto market they are today. However, over the years there have been dozens of American automakers that have come and gone, leaving only traces of their brief existence behind. Crosley Motor Corporation, for example emerged out of Richmond, Indiana in 1939 producing compact convertibles, a pickup, a station wagon and a few other models which were popular choices during WWII when fuel rations were limited. Crosley vehicles were known for getting up to 50 miles to the gallon making them some of the most economical models of the era. Yet there production was brief and sporadic and by 1952 Crosley ceased vehicle production, making these vehicles a rare and fascinating historical find for some collectors.
• Distinct Shapes or “Out-of-Place” Styling: When it comes to choosing quirky collectables, sometimes the simple novelty of finding a vehicles that just didn’t fit in at the time can be a fun choice. For example, the Pontiac Aztec was one of GM’s most recent flops due in large part to its unusual and awkward styling. At the time the vehicle was released it wasn’t a huge success with consumers who complained about everything from the Aztec’s shape and size to the lights and vents placement, despite the vehicles overall competency as a SUV crossover vehicle which were gaining in popularity. There are countless other examples of models that just hit the market at the wrong time or missed the mark on prominent styling trends which is want make them stand out to many collectors as memorable and worthy.
• Military Inspired Rides: Military inspired vehicles have always been a niche market among collectors and some are harder to come by than others. The Hummer H1 for example, which was the precursor to the thinner and more streamlined H2 and H3 models of the present, was and still is a novelty. In 1999 the the H1 emerged as a joint venture between General Motors and AM General which was built on a heavily modified GMC 2500HD chassis. The rough- and-tough looking military inspired vehicle appeals to collectors who enjoy the look and performance capabilities of the heavy duty outdoor vehicle. For collectors, the most desirable model is the H1 Alpha which was discontinued in 2006.

At Condon Skelly, we understand the importance of protecting your collectible, antique, classic, muscle custom and exotic cars is. That’s why we specialize in offering complete collector car insurance. We’re a group of collectors, enthusiasts, and professionals who specialize in insuring all types of collector vehicles. Our team is as passionate about protecting your vehicles as you are about collecting them. We can help you secure affordable, industry-leading specialty auto insurance coverage to protect your classic, antique, or exotic vehicles. For more information, contact our collector auto insurance specialists today at (866) 291-5694.

Collector Car Insurance: Spotting a Modern Classic

One of the best things about auto collection is that the market is always expanding. Today’s “new car” can be tomorrows highly prized collectors piece. But not every car driven off the lot will become a collectable, in fact most will not. There is an art to predicting which vehicles will appreciate in value and those that will depreciate into simple used vehicle status. The trick is to invest wisely in the moment.

In a recent article, Popular Mechanics investigated the auto industry over the last few decades in search of the “new classics” or vehicles which are fetching increased prices on the collectors market. Here are a few of their findings:

Porsche Carrera GT (2004-2006)

Why: Rarity. While Porsche’s are known for holding their value well, only a few modern models are being sought after in collector circles. The Carrera GT is one such model. The V10 powered sports car boasts 605 hp which allowed Jay Leno to set three standing-start speed records in the model. Only 604 GT’s produced were available to the U.S. and a grand total of 1270 were ever made. While not yet a classic or officially a collector’s piece, the Carrera GT has held its value and is predicted to increase over time due to rarity and performance capabilities.

VW Vanagon Camper Syncro (1986–1991)

Why: Niche Market. While VW does not have a strong presence in the collector car market, their van models have become routinely sought after in certain niche markets. The Type 2 Microbus for example, the groovy one from the 60s, has fetched six digit prices at auctions. According to Popular Mechanics, the Type 3 released during the 1980’s through 1991 has increased in value as well. Much of the draw to these models are the built in camper functionality and easily modified to increase power and performance.

Ferrari F40 (1987–1992)

Why: Record Breaker. Ferraris notoriously hold and improve their value when properly maintained, but the F40 has doubled in value in the last 20 years. Weighing less the 2500 pounds and sporting 471 horsepower, the F40 was the first street legal production vehicle to ever break 200 mph. Its styling, performance and reputation have made the F40 a sought after prize and investment.

To read the full Popular Mechanics article, visit their website.

At Condon Skelly, we understand the importance of protecting your collectible, antique, classic, muscle and exotic cars is. That’s why we specialize in offering complete collector car insurance. We’re a group of collectors, enthusiasts, and professionals who specialize in insuring all types of collector vehicles. Our team is as passionate about protecting your vehicles as you are about collecting them. We can help you secure affordable, industry-leading specialty car insurance coverage to protect your classic, antique, or exotic vehicles. For more information, contact our collector car insurance specialists today at (866) 291-5694.

Collectible Car Insurance: Lessons from a Lost Collection

A recent Yahoo Auto article focused on a newly rediscovered collection of Chevrolet Corvettes that once belonged to artist Peter Max. The collection of some 36 vehicles, one from every year of Corvette production between 1953 and 1989, has been stuck in storage for nearly two a half decades collecting dust and slowly deteriorating, much to the horror of some enthusiasts and collectors. How such an intriguing collection came to be forgotten for such a long time is an interesting tale.

According to Yahoo’s report, the owner Peter Max, purchased the collection from the winner of a VH1 contest which was raffling off the vehicles as part of a promotional campaign. Max allegedly purchased the Corvettes with the intent of incorporating the vehicles into an art collection for which he repainted many of the models in bright striking colors. Because the artistic endeavor was never complete the collection was locked up in a storage facility in New York City. Reports indicate the Max considered “completing” his collection by adding 14 more vehicles, one from each year through 2010, however the acquisitions never came to pass. The collection was recently sold to a Corvette enthusiast and collector who is looking to invest in the restoration of the Corvettes and restore them to their show-ready conditions. The restorations however will be no easy undertaking. While some of the models need some basic restoration, many others will require extensive repairs due to corrosion, dry-rot and other deterioration.

When vehicles are left unattended for a long duration of time, they become exposed to a myriad of risks which can contribute to deterioration. However, much of the damage suffered by these Corvettes could have been avoided had the proper long term storage preparations and maintenance measure been taken. Most experts suggest that no vehicles should be stored for longer than a year at a time without being service to ensure the health and longevity of the vehicle. Many collectors wouldn’t dream of being separated from their babies for that long and only store their classics over the winter or non-show season, but even inactivity for three to six months can take a toll on your prized vehicles. As such it’s important to prepare your collectibles for long term storage.

At Condon Skelly, we understand the importance of protecting your collectible, classic, muscle and sports cars is. That’s why we specialize in offering complete collectible car insurance. We’re a group of collectors, enthusiasts, and professionals who specialize in insuring all types of collector vehicles. Our team is as passionate about protecting your vehicles as you are about collecting them. We can help you secure affordable, industry-leading specialty car insurance coverage to protect your classic, antique, or exotic vehicles. For more information, contact our collectible car insurance specialists today at (866) 291-5694.