Surprising as it may seem, you and I are. That is, regular old Joe’s and Jill’s are for the most part buying all these collectable cars. And that is a great thing for the hobby too. You see, the last time we had a big boom in collector cars it was mainly due to loose money being borrowed by speculators. Two things then happened and happened rapidly. In 1990 Japan had a financial meltdown and bankers world wide called in the notes. Many of these notes were not backed by anything but promises and cars dropping in value several percentage points a week. Or in some cases the cars never existed at all, as money was being loaned on world of mouth and some VIN numbers. Sound familiar? It was ugly for sure.
Yes, there are a few speculators still in the car business, but they are for the most part knowledgable car experts buying for customers, building collections, and building bankrolls too. In fact I know at least half a dozen guy’s that started collecting for fun 20+ years ago that have put together great collections AND moved up the ladder to the top of the blue chip collector car arena to be able to buy and sell pretty much anything they want. In fact I talked with a fellow in Scottsdale that was selling his first million dollar car that week who in 1990 was buying and selling car parts. But better than that, he is a car fanatic. It is his love, it is his life. And way more often than not most all of these cars, from the woman that bought the 1966 VW bug she always wanted, to the guy that bought his first Ferrari are going to car people, car lovers, just who you hoped would buy them, right? And that is why this market is not really a boom at all. For the most part It’s us baby boomers and their children enjoying life. That is so cool!
So, what is your bank paying you on your money? How about that equity? Enjoying that are you? Have you seen how low interest rates are? The market is solid so if you can afford to enjoy, so go enjoy!