We get asked on almost a daily basis what cars are good investment, and when it’s a good time to buy, and a good time to sell. In recent years, the collector car market has become much like a bank account for many individuals, as well as a great way to transfer money from the United States into Europe—taking advantage of the exchange rates in hopes of maximizing their investments. While much of this is nothing new, we have been seeing more and more of this over the last few years.
So, is this good or bad?
In our opinion, the current market is at an all-time high, with prices of some blue-chip investment cars—such as certain Ferraris and Mercedes Gullwings—bringing prices never before imaginable. Ferrari Dino 246 GTS models have increased in value over $300,000, while some of the rare Ferraris have gone up by the millions in just under three years time. While British cars haven’t gone up in quite the same fashion, we’ve seen dramatic price increases in models such as Series 1 Jaguar XKE some of which are seeing a boost in value by $100,000—even more in some cases. If you bought one of these cars at the right time, you are in for a serious profit if you’ve made the decision to sell. The collector car market has become a form of stock market where people are buying cars not for love of the car—but simply as an investment that they plan to sell off at a significant profit. The problem stems from the fact that so many of these uninformed buyers are purchasing cars largely based on pure speculation regarding their value.
In the last few months, we’ve seen the euro plummet in value, which will have a sweeping effect on the collector car market. Europe has been a major influence on driving the prices up on many of these collectible automobiles, and now that the currency has become nearly one-to-one with the US dollar, Europeans have all but stopped buying. The effect on import, export, and trade throughout the world will become increasingly apparent in the coming months. With Americans buying up these collector cars at very high prices, the market is incredible strong right, But those looking to take advantage of the current conditions need to move sooner rather than later, as we don’t expect to see this last for any extended period of time. The tide is turning, but ebb and flow is constant.
In our opinion, if you’re thinking about selling your collector car, now is the time to do it. The market is on the verge of a massive shift that will see more and more investors in a position to sell. Now is time to get ahead of that curve. With many of these cars coming on the market at massively inflated prices—and the euro at a record low—the collector car market cannot possibly maintain its current status. If you finally purchased or just finished restoring your dream car, then you should probably hold onto it, as that’s what a genuine car hobby is all about. However, if you bought your collector car as an investment, we believe now is the time to sell before the market turns upside down. If history is any indicator—and it is—bubbles eventually burst, and the collector car market is being pushed to its artificially inflated limit.