Re: How depressed is the market in our cars?

Posted by Owen_Dyneto On 2011/10/22 9:17:48

In my view, the market for the extremely high-end cars, mostly prewar Classics with special pedigree, continues to climb and the very wealthy are not impacted by today's economy and the demand is greater than the supply - witness the 4.6 million for the early steamer just sold.

The prewar but more ordinary true Classics, like my 34 Packard sedan, continue to see value erosion and many owners are now in their 70s and 80s and only a small fraction of today's younger collectors are interested in cars of this era and thus the supply exceeds the demand and I suspect this pattern will continue for a while. There are some really enticing buys on 30s true Classics now.

Probably the most adversely affected segment is what i'd call the "entry level" cars for folks wishing to enter the hobby for the first time. With their disposable income threatened, market for these type cars has really softened.

And the bubble has surely burst for some of the postwar muscle cars, some of which were hitting very high and unrealistic values just a few years ago.

But regardless, I didn't buy any of my Packards with a eye towards turning a profit but rather towards touring and general enjoyment of the hobby. Probably by the time old age forces me to sell, I could be upside down on one or both though not at this point. An alternative I've been considering is to leave one to the Proving Grounds and one to the Warren museum, to retain or sell off as they wish.