Are collectible Cadillacs now on sale too?

[chrisntam]

Given the rather quick drop in the stock market this week, will the values of our cars drop because some of the fat cats are not as fat as they once were?

I think values will drop, but not the same percentage as the stock market has.

What say you?

[Abe Lugo]

Values drop as interest drops and people get older and leave the hobby.  Their children have no interest and pass the cars on.   As more cars become available the prices of certain models drop. 
I believe it is a buyers market on certain models but the more iconic models and certain post 70’s and newer models are gaining popularity as the people that grew up with them started earning enough to have a Toy for the weekends.
Also the next few generations will be less and less interested in vintage autos and the vintage car market will hit a crash. I think it will be within the next 10-15 years.

Like it is said below if you are not selling don’t worry about it. 

[Jeepers Creepers]

Unless you're selling, it doesn't really matter.

[chrisntam]

There are cars for sale and upcoming auctions. I predict a price drop.

[Mike Josephic CLC #3877]

As far as the stock market, it's been riding high on
inflated values for years now.  The price / earnings
ratios are the highest since 2002, without any real
substance behind them.  A major correction was
long overdue (it's not the fault of the coronavirus).

As far as collectibles, be they cars, guns, coins or
whatever one's passion is, as long as there are high
quality examples to be found they will sell without
any problem.  There are always individuals who have
Dollars available and desire to add to their collections.
Perhaps prices will temporary soften slightly but for
the rare and pristine examples there will always be
a market and prices will not take a hit for long.

Bottom line:  Don't worry about it.  Especially if you
are not forced to sell right now.  This too will pass.

Mike

[Anderson]

My, that was quick.

Pardon my phrasing, but the market has "shit a brick" but it was also on a bit of a run (a lot of stocks have just vented 3-4 months of gains at most).  Markets like classic cars aren't going to be nearly so "bouncy" as a rule.

[Eric DeVirgilis CLC# 8621]

Sometimes the collectible market will move opposite the stock market because tangible property is seen as a "haven" from the volatility of the equity market.



 

[Bill Young]

Antique and Classic car values I believe depend on many variables , rarity is not always one of them hence the Henry J versus any given year Corvette. I have maintained for many years that not involving young people with our cars is a MAJOR mistake. I well remember my Father 30 odd years ago when he was alive and involved with the Masons saying to me that they had a problem with their membership aging rapidly and not many coming up to join that were younger. I said to him that that ship had sailed years before when they should have been addressing it. I personally have 3 basic reasons for having my 1961 Cadillac 4 window Sedan DeVille 1. I Love the car , 2. I cannot afford a more expensive convertible model , and Wait for it..... , 3. I personally believe that after I die These cars will have greatly diminished value due to the much lower population numbers of future enthusiasts and my own fear that in the future they might be either legislated off the roads or be unable to drive in future traffic situations similar to how a Brass Age car is today. My fears and prognostications may turn out to be unfounded but there it is anyway. One Mans Opinion.

[fishnjim]

I think the premise is partly faulty on these points.   Certainly "outlook" has it place in financial transactions.
1. Stock Markets are just indicators of "current prices", much like car auctions, not the real value of the investments.   There's more to that story but not a Cadillac related one.
2. Not a bona fide connection between stock prices and collector car values.  Markets follow trends and treat them as two separate markets each with it's own trends.   Look at some of the models price trend and compare to market/stock curves.  Whether or not a car appreciates/depreciates is related to trends.

It's "panic" thinking that causes "herd to spook" and that's dangerous.   
The collector car "hobby" is mostly a disposable income/personal attachment type event not necessarily viewed as a money maker.  (That's why the auction house takes 10%)   The car price will only go down if the seller chooses to sell at less.   As someone noted, that can change as the ownership circumstances change.

[59-in-pieces]

I would like to see if all this speculation of selling classics off follows the stock market - doubt it, but.

As heard on the street - the bottom has fallen out of the Cadillac collector car market and owners are wanting to get out while they can.
The street says that 1931 V16's are the most vulnerable and specifically roadsters.

OK, couldn't afford one up to now, lets hope those owners want out quick and prices plummet.

Oh, the one I want - see below.

Have fun.
Steve B.

[rwchatham CLC 21892]

Anybody with 59 Biarittz s that are selling for pennies on the dollar , give me a call I’ll come by and get them .

[chrisntam]

Fewer buyers flush with cash translates to fewer bidders, thus lower prices.    But that's only if those with Cadillac cars need to sell. 

I also agree with most of what has been said previously.

[chrisntam]

After today market bath, I'll again suggest auction cars will be on sale or reserves not met.



We'll see, Mecum Glendale is here shortly...

It'll be interesting to see what percentage sells compared to prior auctions.

[Cadman-iac]

I've watched both the Barrett-jackson and the Mecham auctions and I've noticed that Mecham has a lot more cars that don't sell on the block than they do at Barrett-Jackson. I'll bet that the number of no sales for Mecham will double this time.

[59-in-pieces]

I agree - if you DON'T have to sell - then don't worry about the mindless speculations.

My thoughts for what they are worth - certainly what you're paying for them - don't be stampeded by anyone.

And my personal favorite - words I live by....NEVER HURRY TO A DISASTER.

Have fun,
Steve B.

[0maha]

I'm new around here and just bought my first Cadillac last year, so I hesitate to offer an opinion.

That said, my $0.02 is this: For "regular" people of regular means, money spent on hobbies like cars or boats (or my personal kink, motorcycles) is spent buying fun and enjoyment and maybe nostalgia. The guys that play in the world of million dollar stuff? Well I don't know anything about that world.

For me, every dollar is spent with the thought that it's never coming back. If one of them does manage to find it's way back home, that's just a bonus.

My father in law is in his 80s now, and his health is failing. He spent the last 30 years collecting  Chryslers. None of them were ever high value cars. Just routine stuff from the 40s and 50s that he admired as a young man. He's down to two cars now, and has been disappointed that he lost money on every one of them.

My take is opposite. He and his wife got decades of enjoyment out of them. They met lots of friends through car shows and clubs. It was a big part of their life.

In that sense, I don't think the cars owe him anything. I think what really disappoints him is that no one is interested in those cars. That seems like the way of things. Most of us are attracted to cars of the era when we were young. For that reason, I have no interest in his 49 Chrysler, and I don't expect my kids to have any interest in my 79 DeVille.

As for the stock market, my guess is that unless this virus stuff turns out to be horrible beyond measure (like 5 million or more Americans dead), the market will bounce back by summer and all this will be forgotten.

[The Tassie Devil(le)]

G'day Jeff,

Investing is all about buying the "right" stuff, and that comes to cars as well.

If one had forethought, and had sufficient cash to purchase what one thinks would be a collector car, then one would be either rich or poor.

Who would have thought that a Muscle Car would be reach what they do now.   BUT, one must remember that if one saved all the money that they invested in buying, and stashing away "future Collectibles", and saved the funds that would have been spent on housing those vehicles, insuring and protecting them, plus buying cars to drive into the ground, and invested that money in good, safe investments, then one would be rich, unless there was a Stock Market Crash, a massive fire, or ones' shed was built on an earthquake fault line, and the earthquake came, or the volcano erupted.

The thing about cars is the enjoyment of driving them, and showing them off.   As for the fortunate few, who own those "Special" cars, it will usually be their children that will benefit, when they sell off everything to fund the lifestyle that they couldn't have as children because dad spent everything on "investments".

Bruce.

[hornetball]

I buy cars I like and enjoy them.  I'm definitely NOT a collector, I just have a big garage full of toys.

That said, at the really high end, I suspect the tax law change affecting like-kind exchanges has taken a lot of wind out of the big money deals.  Uncle Sam is getting his cut on every transaction now.

[cadillacmike68]

I buy cars I like and enjoy them.  I'm definitely NOT a collector, I just have a big garage full of toys.

That said, at the really high end, I suspect the tax law change affecting like-kind exchanges has taken a lot of wind out of the big money deals.  Uncle Sam is getting his cut on every transaction now. 

I have a Small garage full of toys. 

[Cadman-iac]

I just have a full garage. I wish it was full of toys.