Classic Prices...Is it the late 1980`s over again ?

[Morris Mike]

Hello,
As a Classic Vehicle enthusiast of long standing ( 35+ years) I have seen the very different peaks and troughs in the prices of classic vehicles over the years.
After the late 1980`s explosion of prices and subsequent decline we all said we would never get sucked back into paying over the odds for our vehicles,houses and basic needs.
Over the last 10 years we all got sucked back into the same greed driven senario that happened before.
Now it is the time for classic cars to enter the stage.
It is surprising the amount of ordinary car dealers that have abandoned selling run of the mill auction fodder and have jumped on the classic car bandwagon and set up as classic car dealers.
I have had a few visit me looking for stock to fill their showrooms,they are treating the classic car as just another commodity..
Then there are the new dealers working from home.. "hello i am phoning about the car you have for sale...which one"
I attend auctions in my local area and see people I know from all walks of life suddenly taking an interest in buying a classic car and selling it on for a nice cash in the back pocket profit.
These are the same people who just over 2 years previously would ridicule classic car owners for not owning the latest "Jack The Lad Hot BMW or Mercedes".
Now it is cool to own a fleet of classic cars,instead of the apartment in Spain,the Sarah Beeny do up terrace house,or investment in the stock market.
Just look at the inflated prices for unfinished projects,un Mot`d cars,barn finds or nearly finished cars....because there is no money to make finishing off a vehicle to roadworthness for these uninformed,untalented,uncaring people who are just jumping on our hobby to make a fast buck.
What do you think.?

A dyed in the wool enthusiast
Morris Mike

[chris_bates]

I've been wondering the same. I've been idly looking for "something different" but prices for anything half decent are now beyond a sensible price. It's an indication of how things are when you see a 40 plus year old Morris Minor Traveller, albeit completely refurbished to a high standard for a figure in excess of £17,000. I know it will be a very good refurb but why spend £17,000 on a Morris Minor (much as I love the cars!)

There are certainly many more classic car dealers offering their wares on the web and some of the prices are reminiscent of the 1980's. I notice that several "collections" have been put up for sale recently as well, so all the signs are there of an imminent bust as the current prices are not just sustainable. Those buying a classic as an investment are in for a shock when they realise the time and money it takes to keep one on the road, not to mention how to fix them when they break down. The real enthusiast may have the pick of some great cars come the bust but with other forms of investment giving such low returns these days, quite when the bust will come is anyone's guess.

My advice whether investing in real estate, cars, art, wine or whatever has always been to buy to enjoy not to make money. Sometimes you can make money but that should never be the main reason to buy in the first place - it inevitably comes back to bite you unless you are one of the few really clever folk like Warren Buffet who can read markets.

Off to dream about what I can't afford!!!

Chris

[C6Dave]

I've been wondering the same. I've been idly looking for "something different" but prices for anything half decent are now beyond a sensible price. ......................

My advice whether investing in .... cars........ or whatever has always been to buy to enjoy not to make money.

'Investors' won't worry about running costs/repairs as they simply put the cars in a garage/barn/whatever and sit on them until prices rise

A car should be bought to take out on the road and enjoy (doesn't need to be all year round though....)

The only real 'investment' cars are way beyond the average buyers budget anyway and even those with deep pockets can loose out. Chris Evans sold a Ferrari for £2,000,000 less than he paid for it (yes you read that correctly) as he didn't realise when he bought it that it didn't have the original engine.

Now that would really p**s off most people!