I think all of us can say that the election of 2016 was one that people will be talking about for years to come. I myself, was watching the election closely and what the outcome would be. Voters had strong opinions on both sides of the aisle with many opposing political views. But could the outcome of an election affect the price of your collection/collector car? The answer could be yes. I feel that the price of iron and other metals is a key indicator of the economy and the markets. After Mr. Trump was elected President Elect, the price of iron jumped $20.00/ton in the following week for crushed cars and prepared iron. Copper, Brass, Aluminum, and other metals also rose in price. Well, this is bad for the old girls in the salvage yards, yet to be rescued for restore or parts, it indicates an optimism in the coming years and markets.
It portrays optimism in the economy and markets which in turn relates to more money to flow into the economy. When the economy and markets start upticks then this over-flows to the job markets and investors. With this fluid money in their pockets, we usually can see an increase in prices for collector cars, boats, and other non-discretional spending. So if this trend continues, as we have seen in recent stock market trends and markets, we should expect to see higher prices for collector vehicles. BUT, always the elephant in the room, we have to have the audience. We are seeing a shift in the age buying the cars. That’s why education and involving people in the hobby are important. Every generation has different buying trends and this will affect prices.
When we have an economy with high taxes, regulations, and rule, we will see people and investors hunker down and NOT spend as much on collector cars, travel, and more. I can say that we have seen some of this in the post-recession economy. 2007 was a landmark year for real estate, collector cars, and other items. 2008, with the recession, we immediately saw a correction in land, and correction in some of the collector car markets. The markets for collector cars in the past 3 years, have been good. I can say, that we had buyers that may have bought 10 vehicles, now were thinking of which 5 they would buy. Bidders are looking more at the condition and weighing their purchases more. But, one thing that we have noticed with our project car and barn find auctions, in particular, is that the demand is very strong. Where as, before at our salvage yard auctions we would see about 30% go to parts or salvage, now in the past 3 years is less than 15% for a VanDerBrink Auction. We have also seen strong demand for barn finds and good project cars. We also have seen strong prices for drivers to excellent cars. VanDerBrink Auctions works with a combination of marketing, online and live auctions to create more of a market for the collections that we work with, no matter the political climate.
But my prediction, forecast, for 2017/2018, 2017 in particular, is that motivation, money, and outlook to a better economy will lead to higher prices in the collector market. I do believe also, that another huge influence in the market, is the market to whom is buying. We need to look at the age demographics and determine if and what they are buying. That is also why I feel that the climate in the next few years is prime for selling your collection and or collector vehicle. The auction is the BEST venue to sell in these environments where competition, advertising, and promotion will bring the market price. I know, all auctions are different, but when we do ones for a collection and amp’er up, we can set the pace for the sale. I believe that every dog should have their day in the sun, and I feel that the market and political environment in the next few years will be perfect for selling your collection at good prices fueled by optimism. We will see what the next 4 years bring and know that it can all change with another election. So if you are looking to sell you collection in 2017- we want to work for you!
VanDerBrink Auctions, LLC
The Lil’ Nordstrom’s Gal