Hagerty Predicts Collectible Car Auction Prices will Slow
Venerable collectable car expert, Michael Hagerty, predicts recent soaring auction prices for collectible automobiles will slow.
In 2010, when the economic concept of the "New Normal", was formulating itself in the public mind, the big money was quietly placing bets on collectible automobiles as a new form of "hard currency". Were they right? Yes, classic car auction results validate that investing in rare automobiles as an appreciating asset was a smart move at that time.
As America has struggled with the recession, rejiggered health care, student debt and a housing crisis, the appreciation in classic car prices has been unprecedented since 2010. But now come the first withering signs that this economic bubble may be about to burst. Will the prospect of a new "Asian Contagion" courtesy of China's slowdown tarnish the allure of poring dollars into automotive investments?
Auction results at this time of this writing point to a slowdown in price increases overall, although premier examples of one-off or extremely limited production automobiles continues to increase.