Many Classic car experts are predicting that the ‘classic car market’ is going to slow, and actually start to shrink. I don’t agree, and referring to the market like that doesn’t work either.
My opinion is that it’s all about which area of the market you position yourself. There is always a model on the way up and something else on the way down. Playing the market is how every financial lottery works, classics cars is exactly the same as the stock market, cryptocurrency, fine jewellery and many other places to invest.
Currently many prestige brands are on a downturn, for example the steep upward curve of the early Porsche and Ferraris has slowed. But much younger cars have lept into their place, and are now following that curve of rapid inflation. We have all seen the Ford RS market take off and that’s really led the way for its siblings, followed by other cars of that era. It’s a bit like a domino effect. In some ways this market is easier to read and a little less volatile. With the big value collector cars there are many outside influences from the global markets. This means that there are constant considerations for that don’t hit other areas of the market and external factors can cause large swings in value.
Compare this to a RHD 205 GTI for example, control is in the hands of buyers here in the UK generally. How much they want one, how much they can afford, any how much the seller wants to hang onto their pride and joy! Clearly that’s a very simple view, but you can’t compare apples and oranges. So what happens next? Does this market drop off and we see the next group of cars take its place? I always look at the market like surfing on the sea. As each brand or niche takes off there is a great time to ‘ride the wave’. Catching that wave at the right time is the key to success. Once the market starts to turn and the wave loses momentum you move to another wave, and so on. How to predict the next wave? That’s for another blog….!