THINGS CAN ONLY GET BETTER
Political uncertainty rocked the market in 2019 – but has it weathered the storm?
‘Trying to consign cars with reserves in line with market prices has been tricky at times’
Last year wasn’t the best for auctioneers, but that was due to circumstances beyond their control – most notably Brexit – for better, or for worse. But how will 2020’s market fare at the start of the new year following a general election?
We’ve seen American auctioneers go all-out with no-reserve sales ( CCW, 15 Jan) knowing that this packs the punters in. BarrettJackson recently held the biggest noreserve auction docket in history on 11-19 January; with 2000 cars from nine separate collections consigned, salerooms on this side of the Atlantic are sure to take note, with a surge of interest in sub-£20k auction cars ( CCW 8 Jan), are these two factors what’s needed to keep the market performing?
According to Tim Gascoigne of Barons, vendors should take a more realistic view about how much return they want. He said: ‘I’m very pleased with how things went for us in 2019 – we performed well in tough trading conditions. 2019 will be remembered as a year that was dominated by political turmoil, which obviously wasn’t good for the economy as a whole, and this definitely had an effect on the classic car market.
‘Trying to consign cars with reserves that are in line with current market prices has been tricky at times, but I think the team have done a great job of explaining to perspective vendors where the current market is and why they have valued a car at a certain price, and this has shown in the increased number of cars that we have had in our sales.’
While some might see true political certainty this year, others, like Brightwells’ Matthew Parkin, reckon that there’s still work to be done. He said: ‘ We saw lots of overseas activity, both from buyers and sellers anxious to get in before trade barriers came into play, at the tail end of last year but sadly, the new political situation has yet to deliver any notion of what will happen with import and export tariffs going forward, so until there is clarity over that, nobody can say how our international business will develop.
‘The mental rollercoaster that we have all been through appears to have pushed many to reappraise their portfolios – particularly “projects” that will never get to the top of the list, so I think supply will be good.’
Historics’ auction director, Edward Bridger- Stille, said that it’s too early to make any informed post-election predictions – but that the market will negotiate any tricky waters. He said: ‘There was widespread concern about market stability and while there is evidence of the market hardening, the prophets of doom and gloom were largely proved wrong.
‘ Whether we will have a positive bounce as a consequence of the General Election outcome is to be seen, but it’s best to remember that the market is dynamic and values will constantly shift, disregarding the political and financial climate.
‘Historics had a very positive 2019, ending on a high at our November sale and frankly, we can see no reason why that buoyancy shouldn’t continue.’ Richard Barnett