How Corona crisis will affect the classic car marketHow covid 19 pandemic will affect vintage car collectors
How Corona crisis will affect the classic car market
If you are a classic car collector or vintage car dealer out there sitting on a large collection of classic cars right now. Then I am sure you are wondering what is going to happen to the classic car market in 2020.
Owning a number of vintage cars, myself I sat down and started to think about how this would affect my own classic car investments. My crystal ball is unfortunately broken but here is a couple of things to keep in mind.
During the last economy crisis I remember being away on two of the major classic car shows that take place in October in Salzburg Austria Classic Expo and then a week later the biggest collector automobile event in Italy AUTO e MOTO d’EPOCA in Padova. This is a spectacular event that me and many exclusive classic car dealers in Europe travel to, and it should be on the bucket list of any classic car enthusiast.
Is the classic car market still a good investment?
While I was on my way to these shows I hear on the news about how the stock market was collapsing and recession was coming in Italy. I was thinking to myself that I will never be able to sell any cars over the weekend since everyone will be scared about what is going to happen to the classic car market after this. Perhaps the investment in their car buying will not be wise.
But to my surprise the show in Padova that year was the opposite to what I had expected! People where buying cars like crazy. And I swear the was a “vendutta” sign on 50% of the cars on that Sunday afternoon.
I think what happens is that when the stock market is not doing well people take their money out from it. And they want to invest in somethings else that possibly goes up in value. Such things could be gold, art, vintage watches, automobilia or collectable things. Or such as vintage automobiles! So, when most people think an economy crisis will make the classic car market go down. It actually has the opposite effect.
So covid 19 will make the classic car market go up?
I think that this pandemic will not make the classic car market go up. We have had a very slow increase in vintage car values over the last 2-3 years. With some certain classic car brands and models dropping. And I think this pandemic will only speed up what was already happening. So, what was already starting to come down will come down a lot faster and what is on the way up. Well you should buy it now. A few years ago, you could by a Ferrari Testarossa in the spring for 75.000€ and sell in in the fall for nearly double the price. And I think we will see more of this in the future with other models.
Come back and read my next blog about in what ways the pandemic will change the classic car market and how you can adapt to it. To see the classic car i have for sale, look here