Collector Car Market – The Beginning of The End?

[72911E]

Worth a read.

http://www.sportscardigest.com/collecto ... f-the-end/

[EdwardLovett]

There are a number of good points in here but in general it's a very uneducated singled minded article.

Putting passion aside for the moment there are many factors why the market is where it is and why it could and may well continue to rise. Even for the so called 'Money Men' he talks about they have nowhere to invest their money with a decent guaranteed annual return. This is one reason why their interest will for the moment remain in this asset class and in other assets as well no doubt.

In terms of passion I think it's unfair to say that the new breed of buyer isn't passionate. Most people love cars and the fact that the world is now been shown that these cars are potentially great investments means their passion and investments can be rather quite an enjoyable experience.

One thing I do agree with is the week on week growth he talks about is out of control and there are uneducated buyers paying too much for poor cars but this will change.

I for one am looking forward to next weeks sales and hope we see more new buyers in the market and enjoying spending their money wisely!!

Onwards and upwards!!

[john ruston]

The thoughts of a second hand car dealer!

When the fall does come it will be same as last time.

Lemming of the cliff,very quickly.

The cost of 911 RS's are crazy as there are to many of them .

Commodity cars such as RS's , post war Nash,certain E Types etc will have the greatest falls

Just like last time

I may be wrong but cash your chips now if you want the dosh as hesitate and all may be lost.

[EdwardLovett]

I am sorry but I 100% disagree. If there is any sort of correction it will be in poor cars that people paid too much for. Quality cars are a not going to plummet at all.

There are lots of buyers in the market and even more waiting in the wings for the market to slip back a little (maybe 10% would motivated them).

Why will prices fall off the cliff John?

Also when you say too many RS's are you talking 73 cars?

[FLY 7]

The situation now is not the same as 1990.

I agree that some prices for some cars are looking unsustainable, and some values may fall whilst others may continue to rise. But, there won't be a wholesale collapse unless there is a really serious economic crash.

The whole market has expanded enormously - throughout the World. From serious car collectors with a portfolio of 'must have' cars, to the average man in the street who may have a 'collectable' or 'recreational' car tucked away for high days and holidays - cars as a 'hobby' seems here to stay.

[Slope330]

while i have to agree with JR rs prices whether 2.7 or 993 are crazy , hate to do this but think ED s right ..........ordinary hell gelb , Greek origin , nice car not special went thru well known london trader at £595 this week !
good quality will sell IMO

[jonno1]

I see that Quentin Wilson just sold his restored Jag at auction for over £200k all in.....

Surely the classic car world is quite different now in terms of popularity, events (notably Goodwood), the amount of support (in terms of garages, forums etc.) and has a broader mass appeal than it once did. Certainly going on the Goodwood breakfast it seems to be thriving with a wide range of people there of all ages. So whilst I am sure things will slow down and in a few cases there may also be a drop, its hard to see it all dropping off a cliff surely? Just my tuppence worth.

[inaglasshouse]

Surely the classic car world is quite different now in terms of popularity, events (notably Goodwood), the amount of support (in terms of garages, forums etc.) and has a broader mass appeal than it once did.

Yes. At the top end I would also add that the market is more global than ever.

its hard to see it all dropping off a cliff surely?

Ah, the "it's different this time" argument. I remember that one from 1999 (equities).


Who knows? If we were able to predict this market or any other, we'd all be quite wealthy. If that happened to me I'd buy more cars!

Cheers, Richard.

[EdwardLovett]

Is a 993 RS a crazy price? Or is it that is crazy the growth in a short space of time?

48 UK RHD Cars?? Great Looks and Great to Drive!!

There are less of these than there are 73RS's so I actually think it's fairly priced in this market and a reasonable safe place for your money regardless if it goes up or down 10%. You could buy a 991 Turbo S and that is going only one way today and fast as well!!

Porsche will be the surprise next week and the yanks are really getting into them. What do we think the restored 65 and 73S will make?

[neilbardsley]

I think the background economic situation is quite different to 1989. What has happen to world since the 2008 credit crisis? Rates have moved to zero. Most developing government around the world has pumped money into their national economies to help growth. This had helped to fill the funding gap caused by the higher cost of credit and tried to kick start inflation. One of the affects of this is the growth of riskier assests. EM economies, equities and also classic cars. All being funded by the FED, BoE, BoJ etc. Now US is starting to taper the amount of money it puts in each month and has singaled that rates may start to rise (next year?). Will we see the return of money from risky assets to 'safe' fixed rate products or does it mean since the world economy is coming out of regression we will see more growth?

If you think this only applies to hedge funds. Rather than putting money into an isa or deposit account I decided to buy a 356 and enjoy it. What will happen to some on here if mortgage rates move up to 4% (we are a way off there yet) and, like I'm having now, they have engine problems so have to spend money they would rather now? As the article say cars have a high carry cost.

I don't know where values are going but I think like John we will seen a correction to this 'irrational exuberance'
http://en.wikipedia.org/wiki/Irrational_exuberance

[Drmark]

Been posted here before but worth a look - from 1991 from memory. Crazy prices pre-crash

[kitesurfer2]

I turned down £120k for my Fibreglass 308, then sold a year later for £35k

[one-two]

Isn't this the same thread as thoughts? If you are bearish, buy a rep or a hot rod. It's the same drive for less dosh. If you are bullish, buy the real thing. It's the real thing. If you can't make your mind up, do neither and write about it here! Best wishes, Robert

[Darren65]

Isn't this the same thread as thoughts? If you are bearish, buy a rep or a hot rod. It's the same drive for less dosh. If you are bullish, buy the real thing. It's the real thing. If you can't make your mind up, do neither and write about it here! Best wishes, Robert

[mycar]

Isn't this the same thread as thoughts? If you are bearish, buy a rep or a hot rod. It's the same drive for less dosh. If you are bullish, buy the real thing. It's the real thing. If you can't make your mind up, do neither and write about it here! Best wishes, Robert

Mike.