Over the past year if you remember, Precision Automotive Group was quoted in a CNBC article about a how we are in a classic car bubble. When it came out, everyone gave me a hard time saying that we are not in a bubble. Even Road & Track said we aren’t in a bubble. The folks doubting if there is a car bubble will end up hurt the most.
GIANT PRICE GAPS
Let’s take a look at the last of the air cooled Porsche. Everybody knows these are the 993 sold from 1995-1998. These are experiencing a bubble right now.
Never has there been such a wide chasm between what is called a level 1 “Concourse Level” car and a level 4 “Fair Driver.” That is the evidence right there: the same car valued at both $800,000 and $40,000.
There are certain cars that are at a level #2 and their prices are being brought up by the best of best. But make no mistake, these prices will level off eventually. So if you can afford to buy the truly best for $500,000 and have it be worth $250,000 five years from now, then more power to you. But if you can’t afford to make a $250,000 loss then you need to call me before you make your next exotic, sports, and classic car purchase.
This is not rocket science. Never has there been a wider chasm between a level 1 and level 4 driver. Is there a bubble? Yeah! If you didn’t think the level 2 and level 3 aren’t being pulled up, then you haven’t been paying attention recently.