Barons auction results...market finally cooling?
Discussion
Lots of unsold entries at the auction this week unless Barons are being particularly slack updating the results...
http://www.barons-auctions.com/auction_details.php...
Anyone there that can verify?
http://www.barons-auctions.com/auction_details.php...
Anyone there that can verify?
Over 7 grand for a Mk3 Cortina!!
When there wasn't many Pagoda SL Mercs for sale a few years ago they were going up like crazy and then loads seem to have come on the market hence the cooling off of prices. Alfa's from the 90s have been cheap for quite a while.
I think you will find ACA in Kings Lynn offer the best deal for selling your car so attracts more entries, attracts more potential buyers, is held on a Saturday, so I would use the results there as more of a guide.
When there wasn't many Pagoda SL Mercs for sale a few years ago they were going up like crazy and then loads seem to have come on the market hence the cooling off of prices. Alfa's from the 90s have been cheap for quite a while.
I think you will find ACA in Kings Lynn offer the best deal for selling your car so attracts more entries, attracts more potential buyers, is held on a Saturday, so I would use the results there as more of a guide.
DonkeyApple said:
Lots of cars at dealers have sat all summer unsold and prices of various things have softened a little.
I think that while the financial markets are still trying to quantify the rate of the slowing Chinese economy, oil is waiting to bottom or confirm bottoming, commodities continue their 3 year decline and the FED declined to raise rates this week as they had previously pretty much agreed they would then an awful lot of surplus investment capital has suddenly become cautious.
Classic cars have been the single best performing asset class since the credit crunch.
The fact that everyone is referring to classic cars as an 'asset class' now tells you everything you need to know. This asset class is taking a breather while several others over the last investment quarter have been crapping out such as equities.
Interesting and given the views expressed by Andy Haldane this week plus the FED decision it seems like the death of cheap money has been exaggerated - so you may be right and it may simply be taking a breather. Which is quite worrying for not just the classic car market....I think that while the financial markets are still trying to quantify the rate of the slowing Chinese economy, oil is waiting to bottom or confirm bottoming, commodities continue their 3 year decline and the FED declined to raise rates this week as they had previously pretty much agreed they would then an awful lot of surplus investment capital has suddenly become cautious.
Classic cars have been the single best performing asset class since the credit crunch.
The fact that everyone is referring to classic cars as an 'asset class' now tells you everything you need to know. This asset class is taking a breather while several others over the last investment quarter have been crapping out such as equities.
alolympic said:
I think the whole global economic market is due for a storm,classic cars included. Why? butterfly effect, something like Bill Cosby being discovered as a wrong un' what a shocker!
As DonkeyApple above notes equities are taking bath as the global economy tanks but cheap money is propping up an asset bubble - for now. Expect tears. Edited by alolympic on Saturday 19th September 20:44
corporalsparrow said:
I'm happy for values to fall back a bit…as long it's not for anything I own.
as the owner of a 1969 XJ6 which is pretty much the same value now as it was when I bought it 17 years ago (I rejected a mint '73 BMW CSA in it's favour) I'm still holding out for trickle down...alsaautomotive said:
Pretty positive results at Brightwells yesterday, usual (circa 20%) unsold rate. Nothing out of the ordinary.
Were you there? Any obvious reason why the red 250CE didn't sell? I noticed the other two W114 coupes did so I'm assuming it wasn't as nice in the flesh as the photos....I had one 20 years back and it looked perfect until I tried to fit new sills at which point realised the floorpan and bulkhead were actually fibreglass reinforced with rust...
JD2329 said:
I agree some people will be sweating a bit at the moment - but I also agree with theories that the bubble is not over yet. Despite earth seemingly calling reality, no one can really know.
A lot of those factors that have caused this perfect storm are still in place – on the financial side, ultra low interest rates and other poorly performing asset classes – and from the enthusiast’s perspective, relatively unattractive modern designs that chase figures rather than sensations.
The mix has ended up that classics are the place to go if – as an enthusiast – you want nostalgic fun with a capital upside, or, as a speculator, just stellar appreciation – and cars as an asset class have gathered a lot of steam.
However I’ve always felt that classics – whatever their level – need enthusiasts to keep them in proper condition. The cost and effort involved is simply too high otherwise.
So if valuations stop appreciating, let alone falling, owning a classic car can suddenly seem a lot less financially viable. No point in speculating (expensively) in a market that might be heading downwards.
Are things cooling now? No idea, but the maddest rush is usually right at the top of the bubble, so it is possible.
It's known as "the greater fool theory" and is very much in play right now. Essentially people will continue to buy assets they understand to be overvalued in the belief that a 'greater fool' will then pay an even higher price. The most prevalent example in recent times was the high tech bubble during the late 90's when insane amounts were invested in any venture that managed to incorporate '.com' into it's company name...A lot of those factors that have caused this perfect storm are still in place – on the financial side, ultra low interest rates and other poorly performing asset classes – and from the enthusiast’s perspective, relatively unattractive modern designs that chase figures rather than sensations.
The mix has ended up that classics are the place to go if – as an enthusiast – you want nostalgic fun with a capital upside, or, as a speculator, just stellar appreciation – and cars as an asset class have gathered a lot of steam.
However I’ve always felt that classics – whatever their level – need enthusiasts to keep them in proper condition. The cost and effort involved is simply too high otherwise.
So if valuations stop appreciating, let alone falling, owning a classic car can suddenly seem a lot less financially viable. No point in speculating (expensively) in a market that might be heading downwards.
Are things cooling now? No idea, but the maddest rush is usually right at the top of the bubble, so it is possible.
DonkeyApple said:
A trigger is needed really. Who knows what that will be. However, a big sell off in another market could trigger forced sales of assets such as premium classic cars. For example some car collectors who are in the oil industry will be forced to sell off assets soon by their debtors. There is already one collector in Aberdeen who is selling assets to raise capital to meet an increased deposit requirement from the banks on his business.
Funny you should mention that - I used to work for a now infamous 'energy' company whose collapse was initially triggered by margin calls caused by a decline in the share price which amongst other things was caused by the tech bubble bursting....though admittedly the other things included a very creative accounting policy...MichaelDelaney said:
I was a Baron's auction at Sandown Park yesterday and the market seemed to be cool tending towards frozen! My rough arithmetic at the end of auction showed about 80% not sold. Looking at the online results published today, there were a few deals struck afterwards which enhanced the results slightly to about 75% not sold. The ones which were sold were generally below estimate. A good time for a bargain Jag XJ or Roller/Bentley!
Lordy - did they forget to open the doors???Gassing Station | Classic Cars and Yesterday's Heroes | Top of Page | What's New | My Stuff