Everyone buying as an investment
Discussion
Anyone noticed this recently with cars over say 5 years old like Z3m, Makinen, Impreza p1, cosworth, m3, 205 GTi etc
People give all kinds of reasons for selling but really the honest answer is they’re looking to make a quick buck
Also questions such as how many owners, has it original paint,
Mileage and so on all are more important than the actual condition of the car to them
Has this always been the case or is it just now that everyone is on the bandwagon?
People give all kinds of reasons for selling but really the honest answer is they’re looking to make a quick buck
Also questions such as how many owners, has it original paint,
Mileage and so on all are more important than the actual condition of the car to them
Has this always been the case or is it just now that everyone is on the bandwagon?
Recently?! It’s always been there with the likes of Hexagon, KGF & 4*, but it really got going around 2010 imo. As interest rates remain close to zero, it’s not going to change for a while yet.
We’ll see something equivalent to the 80’s boom & bust again, I’m sure. I don’t think we’ve reached peak yet, but we’re certainly on the 2nd/3rd wave of money coming in - as you say, all the original investors have already made a killing.
ETA - the ‘80’s cycle was much more around heavy metal than now. Almost anything made in the ‘80’s(+) is now fair-game, which is why the hot hatches are moving, the fast fords, etc...
Another factor is the increasing coherence of car design/engineering. The working man no longer has an SD1 v8, or a 325i, etc to aspire to, they’re all inline4pot turbo now. The 40-50 year old disposable income bracket remember the 80’s cars (‘I had one of those’), and there’s your bubble.
We’ll see something equivalent to the 80’s boom & bust again, I’m sure. I don’t think we’ve reached peak yet, but we’re certainly on the 2nd/3rd wave of money coming in - as you say, all the original investors have already made a killing.
ETA - the ‘80’s cycle was much more around heavy metal than now. Almost anything made in the ‘80’s(+) is now fair-game, which is why the hot hatches are moving, the fast fords, etc...
Another factor is the increasing coherence of car design/engineering. The working man no longer has an SD1 v8, or a 325i, etc to aspire to, they’re all inline4pot turbo now. The 40-50 year old disposable income bracket remember the 80’s cars (‘I had one of those’), and there’s your bubble.
Edited by Prinny on Wednesday 24th January 19:58
Absolutely, it's got the right conditions for a bubble. An asset with limited supply (because, by definition, classic cars aren't made any more), which generates no intrinsic return other than appreciation in capital value, which is relatively easily accessible to casual investors and with relatively low transaction costs.
Some of the practical obstacles to a bubble have been overcome as well, as there's even now some classic car investment funds. Expect to see more, before some people eventually get their fingers burned...
Some of the practical obstacles to a bubble have been overcome as well, as there's even now some classic car investment funds. Expect to see more, before some people eventually get their fingers burned...
jonah35 said:
Anyone noticed this recently with cars over say 5 years old like Z3m, Makinen, Impreza p1, cosworth, m3, 205 GTi etc
People give all kinds of reasons for selling but really the honest answer is they’re looking to make a quick buck
Also questions such as how many owners, has it original paint,
Mileage and so on all are more important than the actual condition of the car to them
Has this always been the case or is it just now that everyone is on the bandwagon?
It's always been the same. All you need is a TV show and boom price rockets. If you look at 60's lincoln continental for example. Old and boring the 4 door until they got murdered out and a 5k car becomes 30.People give all kinds of reasons for selling but really the honest answer is they’re looking to make a quick buck
Also questions such as how many owners, has it original paint,
Mileage and so on all are more important than the actual condition of the car to them
Has this always been the case or is it just now that everyone is on the bandwagon?
Like many of the lads on here ive watched the bubble grow.. Till around last summer when in awe i stopped looking, Free reading the classic and sports car mags in sainsburys last week!
f
king ada! Its beyond belief now IMHO.. You know the games up when the 4* chancers have got an evo 6 TME up for FIFTY FIVE GRAND!
I love all these old heaps but anyone who buys into the classic market this year is playing with fire! Bubble bobble!
f
king ada! Its beyond belief now IMHO.. You know the games up when the 4* chancers have got an evo 6 TME up for FIFTY FIVE GRAND!I love all these old heaps but anyone who buys into the classic market this year is playing with fire! Bubble bobble!
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