I was talking to a classic car dealer today,non vw,mainly Corvette and Jaguar.
He remarked how prices where going up and up.
I asked him what he felt was the reason for this.His opinion was, that because of the poor interest rate being paid on peoples savings.People were looking for an alternative investment.He said the antiques market was doing well for the same reason.

Do you think he's right,what's your take?

I remember the last time this happened and the kicking some speculators took,when it all came tumbling down.

I agree but also have to add that aircooled vw's are very, very popular amongst the youngsters nowadays.
They don't know sh*t about them, but just seem to take them as icecool cars.
I get a lot of questions but also bullshit from young people at work concerning acvw's.
I really don't care what the market is going to do, cause my biggest joy is focused on one bug. I'm not innit for the money anyway...

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George,

This has been the case since the recession. People with $$ to invest have been throwing money at rare and valuable cars since about 2008/09. Like you say, it's all about speculation and there will be another 'classic car' price crash at some point when the stock market starts to offer steady returns with good medium-term potential. That could be late 2012, it could be 2014. Who knows!

Ricardo.

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Agreed with all the previous posters...when interest rates give you nothing people will look for returns elsewhere. If I had more covered storage space I'd be in the buying market too but maybe three years ago.

Today I look and don't see any bargains and I'm sure some will buy too late and get stung.

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A rise in vintage and collector car values seen as a 'safe' investment, happened some years ago. Once the Stock Market and so forth picked-up, many people were left with a car that they had no real interest or knowledge of, and worse, was worth less than their original outlay. These cars were many and varied, Jaguars and many other British cars were the worst offenders. Infact the early VWs did not even dip as the other cars continued to fall in value, and, as we have seen, Split Windows, Oval Windows, semaphore Beetles and Split-Screen TypeIIs have enjoyed a steady rise in values over the years.

With the present financial crisis, we are seeing an increase in speed of rising vintage VW values. So much so that this is having a knock-on effect on 60s and 70s VWs' with them seeing an increase in values to, as buyers turn to them being unable to afford the early vehicles. In addition to this the new generations have a love of the early VW, seeing it as 'cool'.

In comparison the Morris Minor, seen as the 'British Beetle', has had no increase in values for years, and from experience, I can say that they have dropped in value. The Morris is not seen as 'cool' but 'sad' by younger people. I know this is the case as we have both types of cars. All generations chat to me about my Beetle, but only people of a certain age are attracted to the Minor.

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