Is the classic car bubble about to burst?
So if you have followed the classic car market over the last decade you will know that car values have increased dramatically. Ferrari's, Porsche's and Lambo's are selling for more money than a 6 bedroom house in suburbia. Even Sierra Cosworths are trading for £200K, which is ten times their original purchase price!
The reason why this has happened is that people have spare cash and bank rates are still very low, so why not invest it into a classic car that appreciates and you can either use it or stare at it in the garage. As a car enthusiast it is appealing and if I had the space, I would get my hands on a BMW E30 325i sport as it was the car I wanted when I was in my twenties.
Here is the thing though, my two teenage sons like cars, but are much more into computers, cameras and gaming, they appreciate a Nissan GTR or an original Mini, but they have no desire to really buy one, they satisfy their interest by playing Forza!
So will the next generation continue this love affair of classic cars? well, IMHO yes and no. I think the high end market will always have value, however, will the next generation be interested in E30's, Sierra/Merc Cosworths and the like, I would say not as much as people of my age are. They will not be inspired to restore cars of their time, as today's cars are in the main boring, built to be disposable and are too expensive to maintain long term.
I think the next generation will aspire to look forwards and put their money into new technology, electric vehicles, or other forms of non ICE vehicles.
The classic car market is safe for now, however, I think it will evolve in the next decade and those that invest in it need to invest wisely.
So, what are your thoughts? do you think 80's and 90's cars are going to fall from grace?