“Wherever there is change, and wherever there is uncertainty, there is opportunity!”— Mark Cuban
photo courtesy carthrottle.com
WEALTHY DUMP ART CLICK HERE
Business Insider’s recent article, Wealthy art owners are raising cash from their collections amid the looming recession, underlines how many at the top are dealing with cash flow issues.
Investing in art has long been popular among the wealthy because the category is considered a “value-preserving asset class” that has a lower call risk than assets that are priced daily, such as securities. Just like investing in cars.
If collectable cars don’t come to mind, they should, as automobiles fall into that “value-preserving-asset-class, just like the stuff decorating walls.
I’ve spoken with several long time collectors recently, both big and small, and they have all said the same thing; “I can always buy another car somewhere down the road”…
Car Collections Sold?
If you’re a reader of Sports Car Market, again, you should be, you’ve undoubtedly seen falling prices there. Great cars are always going to command big bucks but even that is changing as a newer, younger generation chases the stuff of their youth, just as we did a bit ago.
Monterey 2019 was plain ugly to auctions, cancelled this year and the sell-through at digital auctions is going to suffer as many people have to decide between preserving their business and hanging on to their specialty vehicles.
I hear optimistic rumors that cars will come back up, like that did after the Great Recession. I don’t think so. Instead, a new reality is ahead; that cars that were slowly sliding out of favor with the younger collectors will be forever consigned to what once was. Special Ferraris, 60’s Aston Zagatos, and 450S Maseratis will always have a market, but the days of Ferrari 250GTE’s at $400,000 are behind us. Thankfully.
Collector cars are going to get cheap for a while, and the cars we think of as classic now may stay cheap for ever.
While not over, collectors of a certain provenance are parting with cars that are often just gathering dust. Now, some of those cars are going to end up back on the road, in the hands of people that will hopefully drive the piss out of them. And once again, thankfully.