Early 1990s crash of collector Porsche and Ferrari values...how did it happen?

They do indeed like them. But ask them if they really want to own one.

 

This whole millennials and cars debate is no different than millennials and houses. The narrative that they would rather spend all their money on avocado toast instead of a house is absurd. Who doesn’t want to own a house with a nice yard and two cars in the garage? The difference with millennials is that they can’t afford them now, and their earning potential going forward is looking pretty grim so they’ve adjusted their goals accordingly.

 

Just a thought. What will happen to the value of all those early expensive collector cars from the 1930's.

Not my cup of tea. My guess the owners are typically old men in or around 70+ years old.

 

It takes anomaly people like me, that like pre-war ACD cars, and the European pre-war stuff, and I'm a millennial to boot, but you're right, most of those guys are pushing mid-80's or dead, and the families sold the car(s) to a museum or BHCC/Gullwing to sit on.

 

I never sat in a 1930's car and have no idea how it is to drive.

The desirable cars from the era are expensive.

 

there’s nothing terribly comfortable or fun. It’s a nostalgic thing I suppose.

 

The hand crafted nature of the cars is appealing. I find the cars produced today (including the cookie cutter exotics) have lost the special feeling from the older hand-built cars. The Boxer and Countach were the last cars with a special old world feel. On top of this the production #'s with modern exotics are out of control. With platform sharing, automatic transmission, and the video game dash I have lost interest and will only look at an older car, in the future. Lamborghini just produced the 10,000th Aventador. Compare these #'s with the Jarama.

https://moneyinc.com/lamborghini-jarama/

The looks of this car has grown on me over the years. I do not believe it will ever significantly appreciate in price. The value is there.

 

09 was 11 years ago. Clearly there are new buyers/participants in the market today while old ones have left. There will always be demand for collectible cars.

 

The old pre war stuff you speak of..is definatly suffering. Prices for those have been on the decline for a while now. Of course there are the exceptions like the Talbot Lagos, and some Duesenberg models..but even those have fallen in price compaired to what they were getting 20 years ago. I would definatly take pictures of those cars, but I have zero interest in owning one

 

Ditto. Old stuff. You can show it but I'd rather drive a modern car for enjoyment.

 

Why pre 2013? Montezemolo resigned as president and chairman of Ferrari in late 2014.

Joe

 

The market became excessively saturated with hp after 2013.

 

I was there in 1988, when Enzo died, and after few days with only few calls I understood that all the car-dealers had a lot of Ferrari in their stocks, and the prices begun to run up in an incredible way. I still have some sport auto magazine, as AutoCapital, full of offers of Ferrari cars. I telephoned to all of them, for many months , to try to buy a 3x8, but no possibility : all the cars already sold. And this for 2 years. I succedded to buy one anly at end of 1989.
The prices increased again for one year and in 1991, with Petrol problems, begun to decrease for 5 years.
From '97 to 2010 only little increases per year, excluding some specific cars as Dino 246 and the most important historically, that has begun to see their quotation to grow up strongly in 2010. After, here in Europe, the prices of all the car world had two strong thrusts, one in 2013, at 50 years of Porsche 911 and the second in 2015 at 50 years of Mercedes Pagoda...all the movement took benefit.
Of course after going up the prices begun to decrease after the big auction in Milan called 2.000 wheels, by RM Sotheby, that took the top quotations for not blue chips cars.
Now, the market is very thin here in Europe, for economical crisis everywhere, coronavirus and expecially too too many auctions.
My 5 cents,
Alessio

Ubi maior minor cessat

 

My speculation is that just about everything is overpriced right now. I think that if you look back in history to see when "corrections" took place, it was usually due to a major event that changed how people perceive their money. In other words, when most people start cringing when paying their grocery bill and their electric bill, that's the precursor to seeing the market flooded with the things in their life that they can do without. Inflation that is currently taking off will most certainly have an effect on what people chose to do with their money, and I believe that everything from sports cars to campers will start flooding the market and slow this surge that we are seeing now. I am not a doom and gloom guy, but let's face it there are a lot of people (and families) that are upside down financially, and sooner or later they will be forced to decide what to keep and what has to go. Just my .02

 

I think the proliferation of selling platforms like live and internet auctions has probably comforted some people that their cars are a more liquid investment than in the past. So, as prices soften there is at least the ability to raise cash fairly quickly, even if not as much as might have been realized in the past. There are more options now than advertising a car for sale and waiting for the phone to ring.

 

Spot on.

 

The coming deleveraging will be painful, and it will spare no asset class. On the flip side, buying opportunities for all things will abound.

 

minus the 10 yrs of QE i wld agree.

 

Quality older Classic cars are amazing to drive - the quality is something that can not be replicated. They are super comfortable and fun to drive.

 

Duesenberg prices are at an all time high. Probably 3X prices 20 years ago with some models even 10X.

 

This argument has been going on for ever. I remember hearing how the Brass era car market was dead forty years ago. Right now high quality Brass Era cars (pre WWI) are at an all time high and those 70+ year old owners have been dead for 40+ years.

Quality is what is important.

 

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I wonder who is buying these cars at these prices.. To me it makes zero sense. Sure they are very cool machines, and I do like them but to spend 3 million plus..is simply insane. They are just not worth that kind of money. Let's be real...

If you had the choice between say the LaFerrari at 3 million of the Burg..what would you choose?

 

I know people that would much rather have a dusenburg than any Ferrari except maybe an old 250 series...
that what you have to remember some people have there reasons why they like certain cars and non of it makes a lot of sense..