Exciting Times

October 15, 2014 Comments (2)

Alain de Cadenet

By Alain de Cadenet


The Bubble has not burst. Far from it; in fact, every report I see enhances the onwards and upwards market trend. For years, the auction houses have led the exhilarating charge to produce fresh values that range from the expected to the outrageous. The only bargains now seem to be cheaper cars needing work that buyers can do themselves; thereby making serious saving.

Mercedes

When Bonhams sold the exquisitely engineered 1954 Mercedes-Benz W196, it provided a boost for important GP machines ranging from pre-WW2 Alfa-Romeos, Talbot-Lagos, and Maseratis to 1960s and 70s F1 kit. Record prices appear to pervade confidence to similar genres of cars and that must surely be mirroring the commodity market? Either way, the auction houses have ramped up their businesses as demand increases and specialist publications have become invaluable to buyers in determining how prices have panned out as well as offering opinions, suggestions, and an insight into just how much knowledge is needed to bid assuredly.

Goodwood Festival of Speed

Such is the influence of auction prices that the biggest groans come from dealers who have difficulty obtaining stock. Owners are reluctant to dispose of something just in case it goes up dramatically in price. Who can blame them? Personally, on the premise that he wouldn’t risk his own capital on a dicey machine, I have always thought that a vehicle that was actually owned by a reputable dealer was a better bet than something that was merely on sale or return. Good logic? Depends on the dealer.

About 45 years ago I was chatting with an acquaintance who’d worked out that the sum total of really special, worthwhile vintage, veteran, and classic cars was only something around 3,000. That’s counting just the best of everything and what went into the mix is pure conjecture. Just think about that, though perhaps there aren’t that many totally delicious cars to be had. Remove cars held in trusts, museums, and the like and, even though there is more machinery to be considered from 1969, there will never be enough good stuff to go around.

Ferrari F1 Goodwood

With cheap money abounding, surely you should buy whatever you can get your hands on because this hobby/sport/market is not going to go away in the foreseeable future. By doing so you not only satisfy your cravings, but also provide ample fodder to set up a regime to help keep yourself sane in today’s ever changing world.

After all, old vehicles keep you busy. Research, study, and investigation all lead to what the quintessence of this celebration of artifacts is all about. They stop you playing Sudoku and Candy Crush and teach you about chassis manufacture, castings, machining, brakes, gearboxes, camshafts, bodywork, wheels, tyres, race history, vin numbers, registration numbers, and whatever else it takes to be an expert in your field.

Goodwood Festival of Speed

What’s on offer is wonderful therapy. It is the way knowledge is gained and one of the reasons why demand is so high. Next time you go anywhere the cognoscenti are gathering (Goodwood, for example), just ask them how much fun they are having and you’ll know why prices are on the up.

You’ll notice I have talked only about prices. A price is someone else’s idea of what something is worth and value is a different thing altogether. It is derived from your own feel for the item based on experience, knowledge, and discipline. Your dad’s old car will be more valuable to you than anyone else. So will the car that you always wanted but couldn't afford. Likewise, if you don’t want to wait for years for your favorite to be restored, the ready-to-go 100 pointer may be more valuable to you.

Either way, whatever is going on out there is fueling exciting times in every way in the old vehicle world. That’s why there is no need to worry.

Share:

twitter facebook digg linkedin myspace delicious mixx newsvine posterous stumbleupon technorati tumblr MORE...

Comments (2)

  1. Sam Fader:
    Oct 17, 2014 at 09:37 AM

    I believe there are some headwinds ahead for the record prices seen recently in the classic and sports car markets. Prices are a result of supply and demand, and while the supply of collector cars maybe adequate, there is a diminishing demand for these cars by the younger generations. With all time high prices the younger generations and the hobbyist will not get to experience the highs of ownership and driving these great prewar automobiles. Unless this happens the current prices will be a bubble waiting for a correction for all but a few very rare automobiles.

  2. raffi minasian:
    Oct 18, 2014 at 01:35 PM

    I agree very much Alan. Your comments are echoed nicely in a piece I wrote just a few weeks ago and published here:

    http://mycarquest.com/2014/10/why-collector-cars-are-valued-and-why-the-wealthy-will-always-want-them.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+MyCarQuest+%28My+Car+Quest%29

    I am curious as to your further thoughts on this as I have admired your commentary for many years in motorsports from both classic and current perspectives.

    Thank you, Raffi


This thread has been closed from taking new comments.