WHAT’S AF­FECT­ING THE CLAS­SIC MAR­KET?

Classic Car Weekly (UK) - - News Analysis -

IN­TER­EST RATES

With in­ter­est rates static, many in­vestors plough their funds into as­sets like clas­sic cars hop­ing to make a quick buck. A po­ten­tial Brexit might lead to banks pulling out of their Lon­don HQs. If in­ter­est

rates were to im­prove as a re­sult, in­vestors might move their money back into banks and away from clas­sic. If this hap­pens, it’ll af­fect the

high-end cars first.

WORLD­WIDE UN­CER­TAINTY

Loom­ing po­lit­i­cal changes world­wide could have mas­sive reper­cus­sions in the clas­sic world. Many ex­perts think that if Don­ald Trump wins the US Pres­i­dency, it could re­sult in pro­found changes to trade deals, and he would make it harder to ex­port cars from Amer­ica into all of Europe. A po­ten­tial Brexit could make it harder to im­port and ex­port cars on the con­ti­nent, too.

PRICE DRIV­ERS

Price driv­ers are gen­er­ally out of most peo­ple’s con­trols, but

can change the mar­ket land­scape overnight. One ma­jor price driver is sim­ply fash­ion. One car or type of car can be­come very fash­ion­able very quickly, re­sult­ing in spi­ralling prices. If one par­tic­u­lar model be­comes pop­u­lar, the de­mand can of­ten out­strip sup­ply, forc­ing prices

even higher.

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