Rich car enthusiasts who shell out millions for collectible models could be creating a market bubble, CNBC reported.
"The market is out of control," said Winston Goodfellow, who is an expert on collectible vehicles as well as author of The Goodfellow Perspective blog, as quoted by CNBC.
Car fans with money to spare spent more than $400 million over the weekend at the Pebble Beach auctions that are part of the annual Concours d'Elegance event in California. The new figure far surpasses the record, which was $312 million in 2013, according to collectible car insurance firm Hagerty.
Perhaps true car enthusiasts will simply shrug off a drop in value if the collectible car market collapses.
"You buy what you like and if it goes down in value, at least you like it," said comedian Jay Leno, who was at the Pebble Beach auctions, as quoted by CNBC.
Cars that sell for millions of dollars in the Monterey Car Week auctions fit into a certain "pecking order" that ranges from the 1962 Ferrari 250 GTO that went for $38.1 million last Thursday to the classic 1951 Studebaker that sold for a mere $4,000, according to a Reuters report.
The highest end of the pricing spectrum is seen at the Bonhams auction at Quail Lodge in Carmel Valley and the Gooding auction at Pebble Beach. One example was a 1959 Ferrari 250 GT Series 1 that had a bidding range between $4.5 million and $6 million.
On the other hand, Mecum, a Wisconsin-based auction house, conducts auctions with relatively inexpensive offerings such as a 1963 Ford Falcon that sold for $9,500 and a 1960 Porsche that went for just $14,000.
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