2017: A BUYERS’ MARKET
Statistics reveal that the market has cooled since 2014 – meaning investors are staying away
‘It’s a return to more sustainable prices. The speculators have disappeared’ MATTHIEU LAMOURE, ARTCURIAL
Latest statistics gathered from an analysis of auction results over the last 24 years have revealed that the global classic car market has been in decline since hitting a peak in 2014 – and that’s good news for buyers. The latest Classic Car Auction
Yearbook, which charts prices, values and auctions on both sides of the Atlantic, reveals that the overall global auction market is now worth $1.086 billion (£815,621,490), compared with $1.3 billion (£976,562,509) in 2014.
Covering 1 September 2016 to 31 August 2017, the book lists more than 5500 cars.
Artcurial’s managing director, Matthieu Lamoure, says: ‘It’s good news. It’s a return to more realistic and sustainable prices. The speculators have disappeared and been replaced with lifelong enthusiasts.’
The other index of the market’s health is traditionally the percentage age of lots sold, and is up three per cent year on year, at 75 per cent.
CCW auction analyst, Richard Hudson-Evans, says: ‘In general, it is good news, and it means that it’s a buyers’ market. But it’s important to remember that the best of the best are going for more money than ever before. Things like pristine fast Fiestas and Escorts are fetching serious money.’
Derek Mathewson, of Mathewsons’ Auctions, says: ‘I’m not sure I would agree with prices peaking in 2014. If values have fallen, they were artificially inflated by the appearance in the trade of modern car dealers who were seduced by what they consider to be substantial profit margins.’
James Szkiler, chief executive of North Yorkshire dealer, Classic and Sportscar Centre, says: ‘In October we sold 27 cars, totalling around £850,000 in sales. We’re particularly buoyant at the moment, achieving good prices for good cars.
‘ We do prepare cars to a high standard, and people are willing to pay more for them. Peace of mind plays a big part for us. We sell a lot unseen – it’s good for buyers to know that a car has a full MoT and comes with a warranty. It takes risk out of it in comparison to auctions.’
No reserve
A trend noted in auctions is the increasing number of cars offered without reserve. Around 26 per cent were no-reserve lots – mostly in America. Classic Car Auction Yearbook co-editor, Adolfo Orsi, says: ‘The increased importance of noreserve lots is representative to a buyer’s market. Current prices always incorporate expectations of the future, but the direction of tomorrow’s trend has changed from upward to downward, thus today’s buyers are willing to wait for the next opportunity when asking prices may not be unrealistically high.’
Hudson-Evans adds: ‘No-reserve auctions are becoming more popular in the USA, and I expect to see an influx of them coming to the UK. Running an auction is extremely expensive, and if cars aren’t selling, auction companies aren’t making money.
‘A consequence of a softening market is more no reserve lots, once again, playing in to the hands of buyers.’