Why so cheap?

[lionel2986]

I noticed the Lionel #6-18216 Conrail SD-60M engines on ebay for $200. This engine is from around 1995 and I remember when it cost $650 new. How do collectors make money in this hobby, and whats the point of keeping stuff in the box and not running it if it will depreciate so much? I have taken a break from the hobby so seeing this engine selling for $200 in new condition surprises me. Its a very nice looking engine with railsounds, I might have to pick one up.

[Dave Farquhar]

Mainly because the new stuff interests operators more than it interests collectors, and to an operator, it's scale fidelity, sound, and command control that's more important, and in most cases, newer is better for these things.

People buying new stuff aren't in it for the money, or shouldn't be. Usually they sell not for profit motive, but to finance a new purchase. I'm sure selling something at a $450 loss hurts, but some people regard it as entertainment. The people who pay $25 for hardback novels or $15 for CDs and movies and then sell them in garage sales a few years later for $1-$2 apiece are taking an even bigger bath. Compared to that, the Lionel locomotive holding 30% of its value seems pretty good.

If that locomotive's features interest you, and the price seems right, by all means go for it.

[pbjwilson]

Isn't it great! I can finally afford the trains I was looking at 5-10 years ago. I've purchased a few really nice engines recently, new in the box.. Mainly MTH with PS-1. Put a new battery in and they run great. Selling price on e-bay between $100-125. I've noticed some selling for under $100. Actually I like these older models because they have less detail and are less fragile than some of the new stuff coming out. They still are beautifully finished, have smooth running can motors, gotta love it.

[Anonymous]

"How do collectors make money in this hobby, and whats the point of keeping stuff in the box and not running it if it will depreciate so much?"
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You collect something simply because you enjoy collecting, in all its diverse aspects. You do not collect to make money--or certainly shouldn't. Most true collectors of toy trains don't worry all that much about the value of their collections, aside from for insurance purposes. If/when they sell items, it's generally because they are upgrading an item to one in a better condition.

Although some contemporary "operators" may poo-poo the collecting segment of the hobby, the simple truth is that collecting trains and a universe of other objects has been around for a very long time and will likely outlast all the fascination that exists today with operating.

Speculators in the hobby do exist, but they deserve just what they get, which most often is little or no reward for their efforts.

[palallin]

Amen, Allan!

[Anonymous]

operating is way more fun than collecting dust in a box then selling it for less........have fun with trains.........
john

[Anonymous]

Different strokes for different folks, trainmaster! I'm sure a lot of collectors would disagree with you, even though when it comes down to it, most operators are collectors themselves, even though they won't admit it. I figure if you have more trains around than you can run on your layout at one time--and that probably includes the majority of people participating on this forum--you're already a collector.

[3railguy]

QUOTE: I noticed the Lionel #6-18216 Conrail SD-60M engines on ebay for $200. This engine is from around 1995 and I remember when it cost $650 new. How do collectors make money in this hobby, and whats the point of keeping stuff in the box and not running it if it will depreciate so much?

Who said collecting is about making money? Only a fool would think that. You collect trains because you enjoy trains and want to surround yourself with them.

I think you misjudge people. People in most cases keep their stuff mint in the box because they are accumalating for a future layout or train display but never get around to it. Or when they get around to it, they find technology has vastly improved or change scales and want to trade up. or they buy trains for the sake of buying them and they pile up. It's only money so no big deal.

The item you mention was state of the art at the time it was produced and gave people pleasure. By the way, the origional $650 price you mention was MSRP and it was sold at a discount then.

[markn]

How do you make a small fortune collecting and operating model trains?--start with a big one, you have to be doing this because you enjoy it--BTW I wish some stocks I did buy as investmens in the mid 90's were still trading at what I paid....If you going to lose your shirt, you might as well have fun doing it.

[Anonymous]

There is no guarantee that you will get your money back on any train you buy. These are hobby goods, not common stocks, real estate, or Old Master paintings. The prices of stocks, real estate, and collectibles do fluctuate. Buy the trains if you enjoy them. Don't spend more than you can afford on them. They are a hobby, not a portfolio or a 401 K with a guaranteed return. As the brokers like to say, "past performance is no guarantee of future return."

If the resale value of your trains were to drop 50% tomorrow, would you still enjoy them or ruefully regard them as blue chip stocks which became worthless? It's still fun to run my N&W J "Warhorse" freight set even though I can buy a like new set listed in the TCA Headquarters News for about 50-60% of what I paid for it from a dealer ten years ago.

Old timers will remember days gone by when expensive Lionel items were discounted after Christmas and days when now desirable Lionel and Flyer toy train sets were traded in at rock bottom prices for HO and N gauge trains or slot cars. Even back then prices dropped. If your joy is in the possible resale and not the enjoyment of the item and the friendships you will make in the hobby, you might try the stock market instead.

[Anonymous]

Allan Miller,

Did you mean "pooh-pooh" rather than "poo-poo"? You generally reserve the latter term for the CW-80. [:)]

wolverine49

[Anonymous]

You're right, Wolverine! Should have been pooh-pooh for the contemporary operators (some of them) and poo-poo or even doo-doo for the CW-80. My error! [:)]