Automotive Market update

By: Cliff Chambers, Photography by: HSV, Shannons, Burns & Co

Date: 27.02.2023

Price disparity of the same model is influenced by condition

Price disparity of the same model is influenced by condition

The market may have softened and price-no-object buyers disappeared, but quality stock still commands big bucks

A year ago, when the automotive market stood with a puzzled look on its collective face, predictions were rife that the boom couldn’t last and near-zero rates of interest had to move soon. How right the wise heads were and how wrong the doomsayers, predicting market carnage.

Once a welter of interest rate rises began to bite, the money-no-object buyers did disappear. Not, though, the willingness of serious enthusiasts to take advantage of a softer market, but still pay strong prices for quality vehicles and be prepared to hold them into the future.

Build #73 was almost in ‘showroom’ condition and commanded a premium

A case in point was the disparity exhibited during Shannons’ November timed online auction by two examples of the desirable HSV Group A SS.

One car was in unremarkable condition, but intact and by no means a wreck. It made a disappointing but probably realistic $126,000. The other was an exceptional car, with a comprehensive history and just needed some detailing to reach ‘showroom’ condition. It made a near-record $266,000.

According to Christophe Boribon, Auctions & External Relations Manager at Shannons, that auction and those cars reflect a market where strong demand for quality stock is being sustained and no untoward trends have been seen as yet.

"That sale achieved an 89 percent clearance and that was a very pleasing result," Boribon commented. "Quality lots still bring out the buyers and people are prepared to spend significant money to buy a particularly good vehicle."

Build #166 had some signs of use but still attracted a strong $126k

Boom and bust in the Australian collector vehicle market does tend to follow the fortunes of the property market. Analysts are closely watching for any influence manifesting during 2023 as more home buyers feel the effects of increased interest rates.

However, today’s market for recreational motor vehicles has changed significantly since the last (2006-08) downturn in demand for specialist vehicles.

Back then, more of the market’s potential buyers were accessing home equity to fund a hobby car. When values shuddered to a halt, some owners cut their losses and sold.

Today, the buyers remaining in the market seem generally older and the temptation to ‘put it on the house’ is less apparent. Vendors report vehicles being bought, even in multiples by the same buyer, for enjoyment rather than the possibility of profit.

Some of the wonders from the Burns & Co "Merv’s Shed" auction

Ashley Burns from Melbourne-based auction house Burns & Co says that the desire to own a special vehicle is unchanged but the urgency is no longer there.

"People are being more careful than maybe they were during the Covid era, but if a car looks right and comes with a good story it will sell for good money," Burns said.

He was particularly impressed by the results of a 2022 clearing sale he calls where a major collection of cars, trucks and automotive items was sold on behalf of a single vendor.

"There were vehicles there that, if they had been sold in Melbourne, would be guilty until proven innocent," he confided. "Where it just rolls off a truck with no heritage, everyone is suspicious, but out in the bush with the confidence people get from that type of sale and where everything has been there for years, those cars made well above estimate."

Cliff Chambers
January 2023

From Unique Cars #475, February 2023

Unique Cars magazine Value Guides

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