Up to US$400 million (A$613.1 million) worth of cars will be sold as part of the auction block in Monterey and Pebble Beach this week, marking the greatest test for the collectible car market and wealthy owners.
“Pebble Beach is the annual health check on the market,” said Simon Kidston, a classic car advisor and dealer.
“Everybody waits to see what happens at Pebble Beach before committing to a major decision the rest of the year.”
An estimated 1,140 cars will be up for auction at Monterey Car Week, which is an annual gathering for car collectors from all around the world.
Sales are estimated to reach $367 million and $409 million, according to Hagerty.
The midpoint of that range of $388 million would mark the third year of decline in sales and a steep 18% drop from the recent peak of $471 in 2022.
The high-end market is also falling short, as the Monterey auctions normally feature at least a half-dozen cars priced at US$10 million or more. This year, there was only one.
The average sale price has also dropped from $477,000 last year to $473,000 this year.
The decline in prices follows a similar trend to other collectibles, like the art market.
Overall, collectible prices have fallen 2.7% over the last 12 months, according to the Knight Frank Luxury Index. Classic car prices are down 0.2% but are still travelling better than art prices, which dropped 20%, but falling behind jewellery and coins, which are up 2.5% and 13% respectively.
Car dealers and auctioneers have blamed global uncertainty, driven by wars in Ukraine and the Middle East, alongside weakness in China.
