I recently owned an 85 L98 automatic.  We are looking at getting another Vette. I really like the C4 series look, but have also explored the early C5s.   My question primarily centers around the 96 Collector's Edition.  Compared to other Vettes in that series, do you expect the Collector's Edition will hold value better than others?  Excluding the ZR1.  

As a limited-production model, a '96 Collector's Edition should hold its value slightly better than a run-of-the-mill Vette of the same vintage. To maximize its depreciation-resistance, however, you'll need to keep mileage as low as possible.

The key question is this: Are you buying the car as an investment, or to enjoy? If the former, you may wish to consider a '96 Grand Sport, a model that is generally considered to be the most collectible of the (non-ZR-1) production C4s.

If, on the other hand, you're just looking for a fun Vette in your price range, any well-maintained LT1 C4 will do nicely. The collector-car market is unpredictable, but the enjoyment you'll get from driving your Corvette on a regular basis is guaranteed.