Turbulent Times for the Classic Car Market

Classicmobilia E’News Issue 166 November 2024

Dear Classic Car Enthusiasts, Collectors and Followers

How can we best describe the current state of the classic car market today?

Perhaps “turbulent” might be an appropriate word choice, as one heard it only recently.

Of course, the occasional ‘roller-coaster ride’ feeling is part and parcel of the classic car market’s history, as so many factors influence classic car values, but who is responsible for it this time?

Let’s delve into it. An ‘asset bubble’ refers to a situation in the financial market where the prices of assets become significantly inflated beyond their intrinsic value.

This typically occurs due to a surge in an asset’s price driven by exuberant market behaviour, where investors continuously buy assets in anticipation of further price increases, rather than appreciating an asset’s true economic value.

Given the above, is the classic car market fine, has the bubble burst, or is it starting to?

Like all good things, this didn’t (and couldn’t) last forever.

We have been witnessing a pattern taking place on the auction scene over the last few months, with sales dropping off and endless numbers of cars not making the reserve’s predicted value, except for vehicles entered with no-reserve (you need to be careful there, but that’s another story).

Again, like all good or bad things, this won’t last forever.

We have seen peaks and troughs over the years with market downturns, recession and market crashes, new governments (we are resisting the temptation to comment on that), but the industry always seems to surge back and hit the heights again.

Today’s classic cars have been and will continue to be the best investment by far and one you can enjoy whilst still avoiding being taxed for the pleasure (let’s keep that quiet).

Having observed several auctions and some quite up-market events recently, we are really struggling to understand where all the buyers are coming from. It is obvious that auction rooms are less crowded these days, but there are a lot more online and telephone bidders.

We are recording far more non-sales in the room and a number of cars being sold after the auction. Auction houses are having to work for a living, who would have thought?

There is always a record to be achieved, and these modern classics are still making the headlines; if you have two people in the room and both want the car badly enough, the bidding will eventually reach dizzy heights (as we witnessed this month).

More and more cars are flowing through even more online auctions, and this is just so difficult to keep track of, which is probably how they want it.

The dealers are just keeping pace, and we still see good cars with documented history selling well, for good prices, so the collectors' car market is alive and kicking, within the network.

If you are looking for a special classic car or looking to sell, did you not drive your favourite classic car enough last year? Maybe it's time for something else? Then we are here to assist or discuss future restoration plans.

We look forward to hearing from you.

Happy motoring

Keith

keith@classicmobilia.com

+44(0)7889 805432

+44(0)1908 270672

www.classicmobilia.com

About Keith:  PS: Cars for sale not advertised

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