Classics and the 2009 Economy

Most “car-guys” that I know enjoy their collector cars primarily for touring, showing, tinkering or for their sheer esthetic beauty.  Only secondarily is there a consideration or hope that the value of the motorcar will never decrease and, if they are lucky, the value over time will increase, making it appear to be a great investment.

As we all know the economy is quite precarious.  In 2008 it is safe

Foreclosure=Good and Bad. Clears inventories but prices drop.

Foreclosure=Good and Bad. Clears inventories but prices drop.

to say that all of us lost significant values in our 401(k)’s, IRA’s, real estate, etc.  2009 has been an improvement to say the least.

Presently there seems to be signs that things are not getting worse.  Unemployment and real estate prices have stopped free-falling (although not particularly improving yet), and retail sales and manufacturing demand have started to increase, albeit on dismal 2008 levels.  www.nytimes.com article on retail sales 

What are we seeing for the collector car markets?  Sales activity is down significantly, but there are some “sweet spots”.  Cars that are selling for under $30,000 are moving fairly briskly as are cars selling for over $300,000.  A good friend of mine, Steve Snyder from www.vaultcars.com muses that 75% of his classic sales are going to overseas buyers.  But the core of the classic market is very slow right now with the exception being cars with high foreign demand, entry level cars and the very best-of-the-best motorcars.

We know that by using a combination of old-fashioned advertising, web technology, YouTube videos, detailed photos, documentation and relationships we can overcome the slower market and successfully find your classic cars new homes.  May we have the honor of helping you?  Let us know.  Thanks, Harry.

Comments

  1. Mack Besser says:

    Very correct in the statement of cars being sold to Europe. Since the dollar has been down fairly regularly in relation to the EU dollar, it’s no wonder. A 30% discount on a properly priced automobile, is, in fact, a bargain! See my blog w/regards to purchases that have come about for a different reason:
    cohttp://zzaappauto.blogspot.com/ Now is the time to advise clients to buy! Cheers!

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