Is the Classic Car Market Bubble Bursting? John Mayhead Explains the Current State of Affairs

Are Classic Car Prices in Reverse? What’s Really Going on in the Market

If you’ve been following the classic car market, you may have noticed a trend – prices seem to be in reverse. Auction sell-through rates are down, advertised values are declining, and overall, the market seems to be cooling off. But is this a sign of a bubble bursting, or is there more to the story?

According to John Mayhead, a classic car expert and editor at the Hagerty Price Guide, the recent dip in prices is not necessarily a cause for alarm. In fact, it may be a natural correction after a period of rapid growth fueled by the Covid-19 pandemic.

During the height of the pandemic, many people found themselves reevaluating their priorities and deciding to finally purchase the classic car they had always dreamed of. This surge in demand drove prices up, as sellers took advantage of the market conditions. However, as the world began to return to normal and economic pressures increased, buyers became more cautious with their spending.

This shift in buyer behavior has led to a decrease in prices, particularly at the top end of the market where seven-figure models from iconic brands like Ferrari and Chevrolet have seen significant drops in value. However, this correction is not necessarily a bad thing. It’s a sign of a healthy market readjusting to more sustainable levels.

Unlike the classic car market crash of the early 1990s, which was fueled by speculative buying and a lack of market transparency, today’s market is better informed and more mature. Resources like the Hagerty Price Guide provide owners with accurate valuations, and the internet allows for easy research and comparison.

So, if you’re a classic car enthusiast, there’s no need to panic. While prices may be down in some segments of the market, this could be an opportunity to purchase your dream car at a more reasonable price. And remember, the true value of owning a classic car lies in the joy of driving it and connecting with other enthusiasts.

In conclusion, the classic car market may be experiencing a temporary dip in prices, but this is not necessarily a sign of a bubble bursting. It’s simply a market correction that is bringing prices back to a more sustainable level. So, keep calm and keep driving those classic cars!