Turnaround in the classic car market?
06/13/2016
It is one of the most frequently discussed questions in the current classic car environment. Are prices falling again, are they stagnating or are they continuing to rise?
If you follow the auctions, e.g. the Oldtimer Galerie auction at the Dolder Classics last weekend, but also the private sales, you quickly come to the conclusion that the times when classic car prices almost doubled within a year are probably a thing of the past.
Although high euro or franc amounts are still being written on the sales signs at the trade fairs, some of these offers will probably remain for the time being or change hands at more favorable conditions.
Some market observers have been warning of a trend reversal for more than a year, but this has not been visible so quickly. This is also due to the fact that the classic car trade has become a billion-dollar business and a playing field for investors. Naturally, they have no interest in falling prices and, if necessary, support the market in the short term. However, it seems that the time has now come for many potential buyers with an investor's look to pull out of the business, which in consequence means an end to the upward price spiral.
However, genuine collectors and enthusiasts will continue to buy, which is why even special classics can reach high prices. For interchangeable vehicles, however, the air has become thinner and if there are any gaps in the history, then often nothing works anymore.
While some classic car owners have welcomed a turnaround, it can now be difficult for investors, as they may have to adjust the value of their portfolio.
