12 replies to this topic

[mab01uk]

"Read what some classic car enthusiasts are writing online, and you'll come to one conclusion: prices are in reverse. Sell-through rates at auction - when a car changes hands after a successful winning bid - have also declined over the past 12 months and advertised values are down. The obvious synopsis would be that the market's bubble has burst after prospering through Covid and beyond. But is that really the case?"

Classic car expert & editor at the Hagerty Price Guide, John Mayhead, explains....
"Data from the Hagerty Price Guide - Across the 2,851 different models of classic car under review, average values are currently at 86 per cent of where they were in June 2020. And their 'market rating' - which tracks insured values, dealer prices and auction results - is down 13 points from its all-time high in June 2022.
But there are three important words from the previous paragraph that give a clue to the truth: the 'all-time high' was there for a reason: Covid.
People sat at home, realised that life was short, and some decided to buy the classic they'd always wanted. It was like thousands of mid-life crises all coming at once. Demand went up, some people paid over the odds to get the car they wanted, and sellers responded by hiking their prices. For a time, buyers played the game. Then, real life - and the cost-of-living crisis - hit home. Bills rose, mortgage rates went up and fuel prices soared. Buyers started being much more careful with their money, auction rates dropped and dealers reported that buyers were looking, but not buying. As a result, prices started to fall."

 

Here's why prices won't plunge after the recent surge:-
"What we're seeing now is some parts of the market correcting and realigning back to a healthy state.
For some models, the post-pandemic boom wasn't realistic, or sustainable, and at heart, most enthusiasts knew that...."
https://www.thisismo...cent-surge.html

Edited by mab01uk, 01 June 2024 - 08:32 AM.

[Carlos W]

I don't think the market has burst, the general trend is up, there's just a few bumps in the road

[84 City E]

Has been up and down since the late 80's - Cars classic or otherwise are not a stable 'investment'

 

The title says it all 'bubble' something that is artificial and wont last - For more info look into 'the south sea bubble' if you've never come across it before.

 

Ideally, all classic cars are bought to be used and repaired indefinitely by an enthusiast owner, unfortunately far too many are bought by speculators who leave them sitting for years, meaning when they do come up for sale they need all the rubber components replaced etc etc and the big price they were hoping for isn't achievable

 

Also, rose tinted specs play a large part, much like covid did) and a lot of people buy things high, realise they aren't as their fond memories recall to live with and they don't want to or cant fix it or restore it. Then they need to sell, some sit on it for ages hoping to get what they paid and slowly realise to sell the price needs to be lowered down to actual market levels. Or to put it another simpler way - a lot of cars are advertised for big money, when they eventually sell, its often for a much lower and not publicised amount.

 

Long live classic cars drivers (emphasis on drivers)

[DeadSquare]

There are several Unipower GT in the Far East, that are said to be in a deteriorating condition, but the owners apparently feel, that sat doing nothing, their cars are going up in value.

[84 City E]

There are several Unipower GT in the Far East, that are said to be in a deteriorating condition, but the owners apparently feel, that sat doing nothing, their cars are going up in value.

 

Bit like all the supercars in Dubai being ruined by sand then, basically doomed never to be driven again

[84 City E]

Another factor is aging population. Have seen this happen with classic British and Japanese motorbikes. 

 

Once you get past all the people who remember them from their youth or even a generation later remembering stories about how great they were, once those people are too old to drive/ride/be buying classics then the prices drop as the demand also drops.

 

Ive said it before and i'll say it again - classic vehicles are for using and continuously repairing, not just sitting about loosing value

[stuart bowes]

sand / hot dry conditions isn't necessarily a bad thing.. we had a v8 land rover imported from somewhere around there years ago, the chassis and bodywork was pristine just because it hadn't seen any damp at all for it's entire life

 

I imagine you'd have to change air filters on a fairly regular basis though 

[stuart bowes]

classic vehicles are for using and continuously repairing, not just sitting about losing value

 

100%  . it genuinely makes me sad to think of cars being locked away in a garage never being used 

[mab01uk]

Another factor is aging population. Have seen this happen with classic British and Japanese motorbikes. 

 

Once you get past all the people who remember them from their youth or even a generation later remembering stories about how great they were, once those people are too old to drive/ride/be buying classics then the prices drop as the demand also drops.

 

Ive said it before and i'll say it again - classic vehicles are for using and continuously repairing, not just sitting about loosing value

 

True....the Bangers & Cash Auctions on TV often say pre-war and pre-1960's classic cars get harder to sell and prices drop as the generation that remember them reduce in numbers or reach an age where they can no longer drive and maintain an old car.

As the classic Mini was in production over several decades/generations and was such a revolutionary icon it will likely be in steady demand for longer than some other more short lived classic cars.

Edited by mab01uk, 20 July 2024 - 04:20 PM.

[PoolGuy]

Car prices, interest rates, climate they all go up and down and attract sensationalist media. None story imo.

[mini-mad-mark]

 

Another factor is aging population. Have seen this happen with classic British and Japanese motorbikes. 

 

Once you get past all the people who remember them from their youth or even a generation later remembering stories about how great they were, once those people are too old to drive/ride/be buying classics then the prices drop as the demand also drops.

 

Ive said it before and i'll say it again - classic vehicles are for using and continuously repairing, not just sitting about loosing value

 

True....the Bangers & Cash Auctions on TV often say pre-war and pre-1960's classic cars get harder to sell and prices drop as the generation that remember them reduce in numbers or reach an age where they can no longer drive and maintain an old car.

As the classic Mini was in production over several decades/generations and was such a revolutionary icon it will likely be in steady demand for longer than some other more short lived classic cars.

 

I tend to agree generally however I think even the classic mini scene is shrinking to some extent as the current generation never had a mini as an every day car (Y2K and all that) and many of their parents would have had other cars as they became more affluent thanks to Mrs Thatcher (although a false high IMHO) whereas my parents were less wealthy and had a mini as our only transport and I had one as my first car (substitute any old/cheap car for mini here)

 

Just my opinion but the "idea" of a classic car will be less popular because the kids of today mostly play with tech more than getting their hands dirty (same in the workplace I think too), sure there will always be exceptions but....

 

Finally people liked the sound of a V8/V6/straight six/A-series/whatever engine floated your particular boat, all the "egg-whisks" sound the same to me and it's not that much of an exciting noise

[Vanman20]

I bought my van in september 2020.I paid £9,500 which I thought was a good deal looking at prices other sellers were asking.

I've since spent about £2k on it making various improvements,it's a better vehicle now than when I bought it.

Looking at sold prices now I reckon I bought it at the peak of the market,it seems to be worth a bit less than what I bought it for.....I have history of selling cars at the bottom of the market just as they turn upwards.If I sold it now I guarantee prices would rise lol

[84 City E]

..I have history of selling cars at the bottom of the market just as they turn upwards.If I sold it now I guarantee prices would rise lol

 

I think we all have a history of that 

Edited by 84 City E, 22 July 2024 - 12:49 PM.