OK – so the latter is a bit of a generalisation. As a whole, the classic car market has remained pretty steady over the last 20 months – just take a look at the any of the classic car indices and you’ll see that in many sectors of the collector car market price growth has plateaued and in some cases “corrected”. Does that mean that those prices were once incorrect? So it seems, but not by much.
“An economy based on endless growth is unsustainable”
According to Muse’s 2nd Law (Google it, and begging the pardon of physicists everywhere), if nothing enters or leaves an isolated system, entropy increases. Now, I don’t really know what that means but it does sound a lot like the classic car market over the last few years. The mooted argument for sustained increases in the value of classic cars has always been that there are only a limited number of them.
So, in theory, the number isn’t going to increase (no more being built) and realistically the number isn’t going to decrease significantly (giving us the isolated system), so according to Muse what we end up with is increased entropy (in thermodynamics, a quantity representing the unavailability of a system's thermal energy for conversion into mechanical work, elsewhere a lack of order or predictability; gradual decline into disorder). Translated into classic car speak, there is still plenty of energy in the market, but some segments, taken in isolation, are failing to turn that energy into additional heat and a lack of predictability reigns. Fortunately, the system as a whole isn’t isolated at all...