Surviving A Classic Car Slump

Recent auctions have shown a softening in the market for blue chip vintage autos. It’s time to bargain hunt

BERNIE ECCLESTONE, THE FLAMBOYANT former owner of the Formula One racing franchise, has simple advice for those who want to make money in classic cars: “Buy cheap.”

Historically, that hasn’t been easy; big-ticket vintage cars such as Ferraris and Bentleys have surged in value over the past five years, in part because of an ultra loose monetary policy that’s encouraged speculators to look into niche asset classes. But this year the market shows signs of slipping. Lackluster demand was evident in June at an auction held at the Good wood Festival of Speed, the annual celebration of chrome and Castrol held at a sprawling British estate.

A highlight of the weekend—which features races, gourmet food stands, and presentations by brands such as Aston Martin and Lamborghini—is a classic-car auction by Bonhams. This year the house faced a tough audience. Even the day’s top sale didn’t crack a million pounds, a barrier Bonhams used to cross easily. The crowd favourite was a 1962 Mercedes-Benz 300 SL Roadster, which went for £897,500 ($1.2 million). Bonhams sold another of the same model year in January 2016 for $1.5 million.