09-20-2014, 07:49 AM
I am go out on a limb and throw out a prediction regarding the value of classic cars in 15-20 years. Some of you may agree or disagree with me but here is what I see happening.
The baby boomer generation has entered into their retirement years and the remaining boomers will retire over the next 15 years or so. Most of the classic owners today are probably baby boomers and generation X (with some exceptions). Most of us who own these cars probably for 2 reasons: One we love them because we grew up with these cars, and two; for the investment value of the car as it kind of balances our portfolio against stock market risk.
I know there are exceptions to what I am going to say but I tend see a lost interest in classic cars with generation Y. To them it is more about technology. With that being said, as the baby boomer's and X generations decide to sell their investment in 15-20 years there might not be a big market waiting to buy.
The law of supply and demand dictates, the greater the supply there is and the less demand to purchase equates to low values due to market saturation. And just the opposite when demand is high.
My point being is the classic car market is booming right now with the baby boomer's and gen X wanting to remember their younger years through the cars they grew up with. This is driving the demand for classic cars up and this is why we are seeing the cost of classic cars on the rise.
As the boomer's and gen X continue to age owning and maintaining the car will become too much of a burden and it will be time to sell the investment to enjoy other great things. My prediction is the market demand may not be there when that time comes thus we can see a decline in the value of classic cars.
Just a thought...
The baby boomer generation has entered into their retirement years and the remaining boomers will retire over the next 15 years or so. Most of the classic owners today are probably baby boomers and generation X (with some exceptions). Most of us who own these cars probably for 2 reasons: One we love them because we grew up with these cars, and two; for the investment value of the car as it kind of balances our portfolio against stock market risk.
I know there are exceptions to what I am going to say but I tend see a lost interest in classic cars with generation Y. To them it is more about technology. With that being said, as the baby boomer's and X generations decide to sell their investment in 15-20 years there might not be a big market waiting to buy.
The law of supply and demand dictates, the greater the supply there is and the less demand to purchase equates to low values due to market saturation. And just the opposite when demand is high.
My point being is the classic car market is booming right now with the baby boomer's and gen X wanting to remember their younger years through the cars they grew up with. This is driving the demand for classic cars up and this is why we are seeing the cost of classic cars on the rise.
As the boomer's and gen X continue to age owning and maintaining the car will become too much of a burden and it will be time to sell the investment to enjoy other great things. My prediction is the market demand may not be there when that time comes thus we can see a decline in the value of classic cars.
Just a thought...
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