When can the classic car price bubble crash?
Discussion
It seems increasingly insane. The prices that really rather mundane cars, such as a Ford Cortina, appear to be rising towards the 'totally unaffordable'. Let along the values of something like an F40.
When will the prices fall back to earth?
How much higher will they rise before ther correct themselves?
Will it just be interest rates that trigger this? Afterall, we have already had warnings from the Bank of England that increases are on the horizon.
When will the prices fall back to earth?
How much higher will they rise before ther correct themselves?
Will it just be interest rates that trigger this? Afterall, we have already had warnings from the Bank of England that increases are on the horizon.
Prices will come down at some point… when? Can’t say that I have any idea.
I had an insight into the mentality of some people recently though: I was at a show in Nottingham on Sunday. Was talking to a chap who had been admiring my Amazon, and he asked me how much I thought my car was worth. He didn't ask about the history, the modifications that I've made or about the car in general. Nope. Just about the value.
I told him that I'm not interested in value apart from the agreed insurance should the worst happen. His reply was that I should sell now while "all classic cars are worth lots of money".
And that's the problem: seems like a large proportion if classic car drivers, enthusiasts & punters at shows care more about the worth than about the car. It's bad enough to see odious little chaps like Quentin Wilson droning on about classics as an investment, but when joe public at a show are just obsessed with value, you know things are skewed.
For what it's worth: the bloke seemed surprised when I told him he could offer me 2x the agreed valuation amount right there in cash, and I still wouldn't sell.
My car might 'fall' in value over the next few years, it might 'rise' and I couldn't care less. I'll still have my car and I'll still love/get frustrated with the bloody thing in equal measures.
If investors take a hit on falling prices, well boo f
king hoo quite frankly: you're a big boy and you should be aware that 'the value of your investment can go down as well as up'.
I had an insight into the mentality of some people recently though: I was at a show in Nottingham on Sunday. Was talking to a chap who had been admiring my Amazon, and he asked me how much I thought my car was worth. He didn't ask about the history, the modifications that I've made or about the car in general. Nope. Just about the value.
I told him that I'm not interested in value apart from the agreed insurance should the worst happen. His reply was that I should sell now while "all classic cars are worth lots of money".
And that's the problem: seems like a large proportion if classic car drivers, enthusiasts & punters at shows care more about the worth than about the car. It's bad enough to see odious little chaps like Quentin Wilson droning on about classics as an investment, but when joe public at a show are just obsessed with value, you know things are skewed.
For what it's worth: the bloke seemed surprised when I told him he could offer me 2x the agreed valuation amount right there in cash, and I still wouldn't sell.
My car might 'fall' in value over the next few years, it might 'rise' and I couldn't care less. I'll still have my car and I'll still love/get frustrated with the bloody thing in equal measures.
If investors take a hit on falling prices, well boo f
king hoo quite frankly: you're a big boy and you should be aware that 'the value of your investment can go down as well as up'.There is positive side to this, increasing values means many more cars get saved from a rusty grave and/or restored. For years most Maserati Khamsins/Meraks etc appeared to be in a dreadful state, now that prices have shot up, owners can justify the expense of restoring them to their former glory. Take something with a ceiling value of around £3-4k, nobody in their right mind would ever carry out a re-spray or consider re-chroming as it would be money down the drain. End result is lower value cars get patched up, stored, scrapped or broken up for spares.
From auction results, it would appear my 1930 Morgan three wheeler value has fallen a little. I think it is a result of the fairly high number of current Morgan three wheelers for sale, presumably by owners who didn't really know what they were getting into.
The classic car market has always had peaks and troughs, but it's not helped by the ease the wealthy can borrow money to buy things like older Ferraris and Cricklewood Bentleys. At least the woman who borrowed to 'invest' in a Bentley 4.5 lost when she sued the vendor, Stanley Mann although there were rulings both ways before the final appeal.
The classic car market has always had peaks and troughs, but it's not helped by the ease the wealthy can borrow money to buy things like older Ferraris and Cricklewood Bentleys. At least the woman who borrowed to 'invest' in a Bentley 4.5 lost when she sued the vendor, Stanley Mann although there were rulings both ways before the final appeal.
Faust66 (ANA Mike) i could'nt agree with you more, i get it all the time at different shows "whats it worth mate ?" i just say, "well you tell me," and they normally come out with some ridiculous figure, i personally cant wait for the values to fall back, i would'nt be able to afford to buy my cars any more, the values these cars are "worth" or not, whatever the case may be, are crazy.
Faust66 said:
I told him that I'm not interested in value apart from the agreed insurance should the worst happen. His reply was that I should sell now while "all classic cars are worth lots of money".
As Faust says, there are 2 types of buyers out there. There are enthusiasts and there are people who want to turn a profit, OK there are also enthusiasts who want to turn a profit too.At the moment if you've got any cash there is a problem with what to do with it. Most people (99%) either owe the bank money or if they are lucky enough to have some cash they are in the cannon fodder range of investing where they know/fear that banks will just rip them off. So what are the options? owning something tangible seems like a good bet.
For investors, well they like to see the values going up. So long as values keep going up and interest rates are low, then the value will keep going up.
For enthusiasts, this is both good and bad. As Mellow Yellow, it means more cars are being saved. It also means it is easier for enthusiasts to justify to themselves and those around them spend money on their hobby. It can also mean that if you can persuade a bank you are a good bet, then money is cheap to borrow (if not see comment about cannon fodder above).
The downside is that I'm never likely to be able to afford an XK140DHC.
As long as there are more people wanting to buy a classic car than there are cars on the market then the values will go up. When supply exceeds demand then prices will go down. With interest rates being low, they might not crash, but there is no way of knowing.
Edited by a8hex on Wednesday 3rd June 17:43
Having witness the last bubble that burst, this time I feel the underlying considerations are slightly different.
Firstly there is a lot more wealth kicking around (more millionaires) and secondary a lot of classic cars were massively undervalued up to late 2000’s. So there has been a sharp increase in values in most of the moderate desirable cars, but I don’t think when the bubble burst prices are going to tumble. The higher end cars didn’t last time.
However I haven’t included the more common cars in this assumption, just like last time you now see ridicules sums asked for some very mundane cars, these are the ones which will lose their values most.
Firstly there is a lot more wealth kicking around (more millionaires) and secondary a lot of classic cars were massively undervalued up to late 2000’s. So there has been a sharp increase in values in most of the moderate desirable cars, but I don’t think when the bubble burst prices are going to tumble. The higher end cars didn’t last time.
However I haven’t included the more common cars in this assumption, just like last time you now see ridicules sums asked for some very mundane cars, these are the ones which will lose their values most.
There would be a bounce too, look at 2008 house prices pre and post the crash, it came back and then went higher, I am not saying classics will but I expect a lot of us would pile back in to Mk1 &2 escorts, E30 M3s and the Higher Ferraris etc if they more than halved in value so the demand might push up the prices?
I think prices will keep rising for some time.
1. Interest rate increases, when they come, will probably not rise very far.
2. Cars are a 'depreciating asset' from a tax perspective, so gains are tax free.
3. Pensions are now easily accessible for the 55+ age group making classic cars attractive.
4. We are living at the end of a 100 year petrol era, so this may be the last chance to buy cars you can work on.
5. The population of investors is now global. Who had heard of Chinese, Russian, Indian investors 15 years ago.
6. Goodwood has generated a massive following of enthusiasts, and sites like Pistonheads, You Tube, and journalists like Chris Harris have provided free and easy access to information.
I also think maybe people have lost touch with the pleasure you can get from driving classic cars. Modern Ferraris, Mclaren, BMW, Porsche artificially dial in engine crackle and pops. They reign in performance through electronic gismos when driver experience fails to match performance, and although I love dual clutch gear changes, its not like stirirng the gear stick on a 30 year old porsche!
Don't get me wrong, I love the modern supercars, but they offer a totally different experience to a classic.
1. Interest rate increases, when they come, will probably not rise very far.
2. Cars are a 'depreciating asset' from a tax perspective, so gains are tax free.
3. Pensions are now easily accessible for the 55+ age group making classic cars attractive.
4. We are living at the end of a 100 year petrol era, so this may be the last chance to buy cars you can work on.
5. The population of investors is now global. Who had heard of Chinese, Russian, Indian investors 15 years ago.
6. Goodwood has generated a massive following of enthusiasts, and sites like Pistonheads, You Tube, and journalists like Chris Harris have provided free and easy access to information.
I also think maybe people have lost touch with the pleasure you can get from driving classic cars. Modern Ferraris, Mclaren, BMW, Porsche artificially dial in engine crackle and pops. They reign in performance through electronic gismos when driver experience fails to match performance, and although I love dual clutch gear changes, its not like stirirng the gear stick on a 30 year old porsche!
Don't get me wrong, I love the modern supercars, but they offer a totally different experience to a classic.
I think prices will keep rising for some time.
1. Interest rate increases, when they come, will probably not rise very far.
2. Cars are a 'depreciating asset' from a tax perspective, so gains are tax free.
3. Pensions are now easily accessible for the 55+ age group making classic cars attractive.
4. We are living at the end of a 100 year petrol era, so this may be the last chance to buy cars you can work on.
5. The population of investors is now global. Who had heard of Chinese, Russian, Indian investors 15 years ago.
6. Goodwood has generated a massive following of enthusiasts, and sites like Pistonheads, You Tube, and journalists like Chris Harris have provided free and easy access to information.
I also think maybe people have lost touch with the pleasure you can get from driving classic cars. Modern Ferraris, Mclaren, BMW, Porsche artificially dial in engine crackle and pops. They reign in performance through electronic gismos when driver experience fails to match performance, and although I love dual clutch gear changes, its not like stirirng the gear stick on a 30 year old porsche!
Don't get me wrong, I love the modern supercars, but they offer a totally different experience to a classic.
1. Interest rate increases, when they come, will probably not rise very far.
2. Cars are a 'depreciating asset' from a tax perspective, so gains are tax free.
3. Pensions are now easily accessible for the 55+ age group making classic cars attractive.
4. We are living at the end of a 100 year petrol era, so this may be the last chance to buy cars you can work on.
5. The population of investors is now global. Who had heard of Chinese, Russian, Indian investors 15 years ago.
6. Goodwood has generated a massive following of enthusiasts, and sites like Pistonheads, You Tube, and journalists like Chris Harris have provided free and easy access to information.
I also think maybe people have lost touch with the pleasure you can get from driving classic cars. Modern Ferraris, Mclaren, BMW, Porsche artificially dial in engine crackle and pops. They reign in performance through electronic gismos when driver experience fails to match performance, and although I love dual clutch gear changes, its not like stirirng the gear stick on a 30 year old porsche!
Don't get me wrong, I love the modern supercars, but they offer a totally different experience to a classic.
I don't see prices crashing just a much larger gap appearing between perfect low mileage original examples and restored or run of the mill cars
Rare cars will always be rare and will always create the sellers market where supply where demand dominates values
Question you have to ask is would you sell your car/s if they were going to halve in value next week....I wouldn't sell any of them
Rare cars will always be rare and will always create the sellers market where supply where demand dominates values
Question you have to ask is would you sell your car/s if they were going to halve in value next week....I wouldn't sell any of them
Very true! At least a silver lining.
Mellow Yellow said:
There is positive side to this, increasing values means many more cars get saved from a rusty grave and/or restored. For years most Maserati Khamsins/Meraks etc appeared to be in a dreadful state, now that prices have shot up, owners can justify the expense of restoring them to their former glory. Take something with a ceiling value of around £3-4k, nobody in their right mind would ever carry out a re-spray or consider re-chroming as it would be money down the drain. End result is lower value cars get patched up, stored, scrapped or broken up for spares.
The danger is, as I see it, that the best cars will become mere artworks; destined to continue to change hands for whatever the buyer will pay. In the prevous big bubble, cars were bought as investments, and when the realisaton came that the gains were slowing, people got out, and just as in the stock market, that caused a mass exoduus, and ultimately a crash.
I also think one of the major factors is that uneducated investors (who would just as happily buy coffee, or sculptures, or rare teaspoons) see speculative prices being asked, and pay them, thereby inflating the perceived value of the cars they buy. There remains the common-sense, informed buyer, who knows what (within bounds) something is worth, but that ceases to have much meaning when the seller can knock the car down to any Tom, Dick or Barry for stupid numbers.
There will always be the middle ground, for want of a better name, of perfectly decent cars. Then there will also be those, as in the 1990's, who will pay vast amounts for a nut and bolt restoraton or more-or-less any car, and at the moment, they can still sell for a profit. A market will always find its level, and I think that will happen again, although this time, those upper-echelon cars will remain apart, and continue to be traded as trinkets.
It's true that the introducton of wealth from Russia, China and India has changed the picture, but fashions also change, and for those speculators for whom the article itself is irrelevant, something else shinier and more fashionable will come along eventually. Except that this 'new money' won't need to sell at a loss when the market moves, so a crash like we saw twenty-odd years ago is unlikely; more a softening of values over time.
I am particularly amused by a car for sale at the moment. Other examples go for betwen 12 and 23k. This one is up for 45 because there is a letter from the specialist owners' club saying it's worth 50. The seller is the founder of that club.
I cite this as an example of a situation where an ill-informed buyer, who wants to make some money, can get fooled into paying way over the odds for a car just because it's the only one painted in a particular colour, and thereby inflating the value for all. And no other owners are going to buck that trend by claiming their own car is over priced.
I also think one of the major factors is that uneducated investors (who would just as happily buy coffee, or sculptures, or rare teaspoons) see speculative prices being asked, and pay them, thereby inflating the perceived value of the cars they buy. There remains the common-sense, informed buyer, who knows what (within bounds) something is worth, but that ceases to have much meaning when the seller can knock the car down to any Tom, Dick or Barry for stupid numbers.
There will always be the middle ground, for want of a better name, of perfectly decent cars. Then there will also be those, as in the 1990's, who will pay vast amounts for a nut and bolt restoraton or more-or-less any car, and at the moment, they can still sell for a profit. A market will always find its level, and I think that will happen again, although this time, those upper-echelon cars will remain apart, and continue to be traded as trinkets.
It's true that the introducton of wealth from Russia, China and India has changed the picture, but fashions also change, and for those speculators for whom the article itself is irrelevant, something else shinier and more fashionable will come along eventually. Except that this 'new money' won't need to sell at a loss when the market moves, so a crash like we saw twenty-odd years ago is unlikely; more a softening of values over time.
I am particularly amused by a car for sale at the moment. Other examples go for betwen 12 and 23k. This one is up for 45 because there is a letter from the specialist owners' club saying it's worth 50. The seller is the founder of that club.
I cite this as an example of a situation where an ill-informed buyer, who wants to make some money, can get fooled into paying way over the odds for a car just because it's the only one painted in a particular colour, and thereby inflating the value for all. And no other owners are going to buck that trend by claiming their own car is over priced.
Edited by Doofus on Wednesday 3rd June 21:37
It is apparent that no one is recognising we are in an asset bubble. Classic cars are being treated as investments by investors seeking yield on their money in a world of near zero interest rates for the last 8 years. If you look at the current classic car prices, the upward trend started around 2010, which tied in with Central Banks pumping money into the system through QE. This money has found its way into the classic car market. What people need to understand is all bubbles burst, and when they do prices go back to or lower than where they started.
For example a Ferrari Dino in 2010 value was around £100k for a nice car, in 2015/6 the same car is £350000. Now look at an entry level Ferrari a 328 GTS, this car was around £35k in 2010, same car in 2015/6 is around £115k. The same can be said of real world cars, like fast Fords. I agree with one of the post reply's which mentions the new pension ruling has allowed retirees to access their pension funds to purchase assets. This will certainly of created a demand for cars that remind them of their youth. However going back to my original point, investors are chasing yield on their money and real estate, fine art, wine and classic cars have been touched by global investors to generate profits. When the next crash arrives which will make 2007/8 look like a walk in the park, we will see all asset bubbles burst. I genuinely believe we will see Dino's at sub-£50k prices. There is an upside to all of this of course, with people chasing profit which includes classic car dealers, they have spent huge sums on restoring badly restored cars from the 1980's and 1990's. This means there will be a supply of beautifully restored cars going for amazingly low prices. Anyone doubting me, look at how the stock markets and commodity prices have tumbled since August of last year. Once these mad people who have paid over-inflated prices realise their wealth is evaporating in front of them, they will be dumping their assets on the open market, including their classic cars. I urge people to hold gold and wait for the crash, and if the world is still fairly normal after a reset, then our gold will buy us the cars of our dreams.
For example a Ferrari Dino in 2010 value was around £100k for a nice car, in 2015/6 the same car is £350000. Now look at an entry level Ferrari a 328 GTS, this car was around £35k in 2010, same car in 2015/6 is around £115k. The same can be said of real world cars, like fast Fords. I agree with one of the post reply's which mentions the new pension ruling has allowed retirees to access their pension funds to purchase assets. This will certainly of created a demand for cars that remind them of their youth. However going back to my original point, investors are chasing yield on their money and real estate, fine art, wine and classic cars have been touched by global investors to generate profits. When the next crash arrives which will make 2007/8 look like a walk in the park, we will see all asset bubbles burst. I genuinely believe we will see Dino's at sub-£50k prices. There is an upside to all of this of course, with people chasing profit which includes classic car dealers, they have spent huge sums on restoring badly restored cars from the 1980's and 1990's. This means there will be a supply of beautifully restored cars going for amazingly low prices. Anyone doubting me, look at how the stock markets and commodity prices have tumbled since August of last year. Once these mad people who have paid over-inflated prices realise their wealth is evaporating in front of them, they will be dumping their assets on the open market, including their classic cars. I urge people to hold gold and wait for the crash, and if the world is still fairly normal after a reset, then our gold will buy us the cars of our dreams.
Banno1966 said:
It is apparent that no one is recognising we are in an asset bubble. Classic cars are being treated as investments by investors seeking yield on their money in a world of near zero interest rates for the last 8 years. If you look at the current classic car prices, the upward trend started around 2010, which tied in with Central Banks pumping money into the system through QE. This money has found its way into the classic car market. What people need to understand is all bubbles burst, and when they do prices go back to or lower than where they started.
For example a Ferrari Dino in 2010 value was around £100k for a nice car, in 2015/6 the same car is £350000. Now look at an entry level Ferrari a 328 GTS, this car was around £35k in 2010, same car in 2015/6 is around £115k. The same can be said of real world cars, like fast Fords. I agree with one of the post reply's which mentions the new pension ruling has allowed retirees to access their pension funds to purchase assets. This will certainly of created a demand for cars that remind them of their youth. However going back to my original point, investors are chasing yield on their money and real estate, fine art, wine and classic cars have been touched by global investors to generate profits. When the next crash arrives which will make 2007/8 look like a walk in the park, we will see all asset bubbles burst. I genuinely believe we will see Dino's at sub-£50k prices. There is an upside to all of this of course, with people chasing profit which includes classic car dealers, they have spent huge sums on restoring badly restored cars from the 1980's and 1990's. This means there will be a supply of beautifully restored cars going for amazingly low prices. Anyone doubting me, look at how the stock markets and commodity prices have tumbled since August of last year. Once these mad people who have paid over-inflated prices realise their wealth is evaporating in front of them, they will be dumping their assets on the open market, including their classic cars. I urge people to hold gold and wait for the crash, and if the world is still fairly normal after a reset, then our gold will buy us the cars of our dreams.
Golds just as volatile as any other investment. And is unemotional.For example a Ferrari Dino in 2010 value was around £100k for a nice car, in 2015/6 the same car is £350000. Now look at an entry level Ferrari a 328 GTS, this car was around £35k in 2010, same car in 2015/6 is around £115k. The same can be said of real world cars, like fast Fords. I agree with one of the post reply's which mentions the new pension ruling has allowed retirees to access their pension funds to purchase assets. This will certainly of created a demand for cars that remind them of their youth. However going back to my original point, investors are chasing yield on their money and real estate, fine art, wine and classic cars have been touched by global investors to generate profits. When the next crash arrives which will make 2007/8 look like a walk in the park, we will see all asset bubbles burst. I genuinely believe we will see Dino's at sub-£50k prices. There is an upside to all of this of course, with people chasing profit which includes classic car dealers, they have spent huge sums on restoring badly restored cars from the 1980's and 1990's. This means there will be a supply of beautifully restored cars going for amazingly low prices. Anyone doubting me, look at how the stock markets and commodity prices have tumbled since August of last year. Once these mad people who have paid over-inflated prices realise their wealth is evaporating in front of them, they will be dumping their assets on the open market, including their classic cars. I urge people to hold gold and wait for the crash, and if the world is still fairly normal after a reset, then our gold will buy us the cars of our dreams.
Buy wisely for pleasure and you're on to a winner.
The bubbles here to stay at the bottom of the market as folk are already buying what they lusted after with their own cash so have no reason to unload.
What Banno said +1
I don't get any pleasure from reading magazines like Octane any more because the prices being asked are so outrageously excessive that I wouldn't pay them even if I could afford them. As & when interest rates start to go up again, as they undoubtedly will, the cost of keeping these cars combined with the lack of a return and slowing down or reversal of capital appreciation will cause them to drop, pretty radically I would guess though I am less pessimistic than Banno because of the huge amount of money and foreign wealth that wants to buy into these things now. Anyway, maybe after the downturn, whenever that is. Maybe then I will buy the S3 V12 E Type i have wanted since I had to sell my last one.
In the meantime, it is actually a good thing, because as has also been said it has created a high quality restoration industry, and saved a lot of interesting cars in the process. Who would pay 200k to restore a DB5 which was going to be worth £50k at the end of it?
It has taken the fun out of a certain sector of the market, but balanced against that, manufacturers have learned from the classics and now produce cars that are faster, prettier, more reliable, better built, safer, better handling and as characterful as most of the older ones, and that is where today's enthusiast needs to be looking, not among Cricklewood Bentleys or '50's Ferraris or the like. I'm talking about Jaguar XK 's Aston DB9, Maserati 4200GT, Porsche 996 and the rest. Even the new Mustang is a classic straight out of the box. That's where the fun is. fk Ferrari Dino's at £400k, who would pay that when you could have a McLaren 570S with all the kit for £160k? Miuras, Ghiblis? I just don't dream about them any more. They are great works of art, historic assets, but remember back in the seventies and eighties, the classics could still outperform contemporary junk. Today they are visibly anachronistic..
I don't get any pleasure from reading magazines like Octane any more because the prices being asked are so outrageously excessive that I wouldn't pay them even if I could afford them. As & when interest rates start to go up again, as they undoubtedly will, the cost of keeping these cars combined with the lack of a return and slowing down or reversal of capital appreciation will cause them to drop, pretty radically I would guess though I am less pessimistic than Banno because of the huge amount of money and foreign wealth that wants to buy into these things now. Anyway, maybe after the downturn, whenever that is. Maybe then I will buy the S3 V12 E Type i have wanted since I had to sell my last one.
In the meantime, it is actually a good thing, because as has also been said it has created a high quality restoration industry, and saved a lot of interesting cars in the process. Who would pay 200k to restore a DB5 which was going to be worth £50k at the end of it?
It has taken the fun out of a certain sector of the market, but balanced against that, manufacturers have learned from the classics and now produce cars that are faster, prettier, more reliable, better built, safer, better handling and as characterful as most of the older ones, and that is where today's enthusiast needs to be looking, not among Cricklewood Bentleys or '50's Ferraris or the like. I'm talking about Jaguar XK 's Aston DB9, Maserati 4200GT, Porsche 996 and the rest. Even the new Mustang is a classic straight out of the box. That's where the fun is. f
k Ferrari Dino's at £400k, who would pay that when you could have a McLaren 570S with all the kit for £160k? Miuras, Ghiblis? I just don't dream about them any more. They are great works of art, historic assets, but remember back in the seventies and eighties, the classics could still outperform contemporary junk. Today they are visibly anachronistic.. Edited by cardigankid on Thursday 11th February 23:09
Who says that the bubble has to burst? yes investment markets go in cycles but classic cars are slightly different in that a majority of buyer own their cars because they actually like the 'classic car scene' owning, driving, polishing, racing, showing, etc! There are indeed those at the very top end who buy purely for investment, but even in that rarefied atmosphere the owners will enjoy fact that this opens gates to some very posh lawns.
The rate of growth may slow, or it may even start to pull back, but to use the word 'crash' is over dramatic. I also get the feeling that some people relish the idea of cars becoming worthless and are trying to talk the market down, something as distastefully as Octane Magazine trying to talk the market up.
I personally couldn't care less. If I ever fancy a change then any drop in value of my cars will correspond to a reduction in what I fancy next so it doesn't really matter.
The rate of growth may slow, or it may even start to pull back, but to use the word 'crash' is over dramatic. I also get the feeling that some people relish the idea of cars becoming worthless and are trying to talk the market down, something as distastefully as Octane Magazine trying to talk the market up.
I personally couldn't care less. If I ever fancy a change then any drop in value of my cars will correspond to a reduction in what I fancy next so it doesn't really matter.
I hear people telling me that the bubble will burst so many times and strangely enough these people saying this don't own any classics.
If you really think if/when the bubble bursts that prices will fall to below where they started then you have to be on drugs
The rise occurred long before investment companies got involved, there's a lot of wealth out there still and not many places to put it.
Personally I'm in it for the love of cars and don't really care what happens but have to admit it helps my case with the war dept
If you really think if/when the bubble bursts that prices will fall to below where they started then you have to be on drugs
The rise occurred long before investment companies got involved, there's a lot of wealth out there still and not many places to put it.
Personally I'm in it for the love of cars and don't really care what happens but have to admit it helps my case with the war dept
The Surveyor said:
Who says that the bubble has to burst? yes investment markets go in cycles but classic cars are slightly different in that a majority of buyer own their cars because they actually like the 'classic car scene' owning, driving, polishing, racing, showing, etc! There are indeed those at the very top end who buy purely for investment, but even in that rarefied atmosphere the owners will enjoy fact that this opens gates to some very posh lawns.
The rate of growth may slow, or it may even start to pull back, but to use the word 'crash' is over dramatic. I also get the feeling that some people relish the idea of cars becoming worthless and are trying to talk the market down, something as distastefully as Octane Magazine trying to talk the market up.
I personally couldn't care less. If I ever fancy a change then any drop in value of my cars will correspond to a reduction in what I fancy next so it doesn't really matter.
Having just spent an afternoon with Paul from DTR discussing one of my projects we have both come to the conclusion that people with money are still spending it on cars, whilst those without any of their own are looking at other markets. The rate of growth may slow, or it may even start to pull back, but to use the word 'crash' is over dramatic. I also get the feeling that some people relish the idea of cars becoming worthless and are trying to talk the market down, something as distastefully as Octane Magazine trying to talk the market up.
I personally couldn't care less. If I ever fancy a change then any drop in value of my cars will correspond to a reduction in what I fancy next so it doesn't really matter.
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