Is there a bubble?

[ConorE]

Everytime there is an article or comment about a classic car reaching new records in a car auction, there is always the same comment of 'it's a bubble, soon it'll pop.' However, this has been going on for at least 12 months, probably more, with very few signs of the price rise slowing down.

Is this rise going to end in the foreseeable future? A new auction record sees the same comment of the 'bubble bursting', but will it ever happen?

[Claudia Skies]

If you look at the curve of classic car prices you see three things,

• Only a few cars continue to gain value in the longer term. They need to be pretty to look at and only built in low numbers, preferably by a famous name.
• Prices tend to rise with the enthusiasm of a generation who liked the look of them when they were kids. Then, as the generation ages and dies off, prices fall.
• Prices often appear to rise but are actually only moving in line with inflation.