The million DOLLAR QUESTION

Given I’m writing this article while in my bubble of isolation during the Covid-19 lockdown, this phrase is particularly apt. Tumultuous economic events such as the oil shocks of the 1970s (which ultimately had a significant impact on the size and fuel efficiency of cars), the stock market crash of 1987, SARS, and the global financial crisis, among others, all had short-to-medium-term effects on classic car values. No doubt Covid-19 will have a similar effect. Some owners will be financially distressed and need to sell; some will be able to ride it out and wait for the resurgence of better times. Potential buyers may sit back to see how the economy improves. However, looking more widely at the classic car marketplace, we are more interested in the longterm values. Last year, I was led to believe that it is the ‘baby boomers’ who are pushing up the prices of classic vehicles, particularly those of the US and Australian variety, seeking a bolthole for their money that can be fun, and might even turn a small profit over time, unlike the paltry interest accrued by depositing money in the bank. My research has shown that this theory is true to some degree. I have, however, discovered that there are other forces pushing prices up, and for some vehicles there are also forces afoot pulling prices down.

To begin, I’ll outline what the world-wide accepted age generations are:

SILENT GENERATION — 1928