It is a good time to buy a collector car if you are fortunate to have cash on hand.
Consumer confidence has taken a big hit in recent weeks as panic selling grips stock markets thanks to global concerns over the spread of the corona virus and the resulting financial impact on businesses affected by measures implemented in China and other countries to minimise its spread.
The Japanese auctions are starting to feel the impact of reduced demand, as buyers postpone non-essential vehicle purchases.
This has been noticeable so far on top end collector-type vehicles such as the Honda NSX. For example on one of the busiest auction days last week there were 18 NSX’s for auction – only one of which sold.
The other 17 passed in after not reaching the seller’s reserve price.
Our agents are not yet seeing an impact on prices for cheaper, mainstream models. Demand remains strong on those, so they may be relatively unaffected – depending on how long the situation continues.
For expensive niche vehicles though we expect some sustained downward pressure on prices for perhaps several months which should result in some good buying opportunities – perhaps we can buy at the reserve price rather than competing with several other bidders that under normal circumstances would have pushed the price higher.
Of course the actual impact can’t be measured due to the variability of the auction process and high breakout prices will still occur for rare cars, so it simply remains a matter of trying your luck when a suitable vehicle comes up.
However, odds are that the majority of collector cars will be a little more affordable in coming months, and for this moment at least the buyer is in the “driver’s seat”.