Fed Rate Cut: Will Classic and Exotic Car Prices Explode on Bring a Trailer? Bid Nerds Predict!

In this episode of Bid Nerds, hosts JP and Michael Deeb dive into a hot topic: the potential ripple effects of the Federal Reserve's decision to cut interest rates by half a percent on the classic, collectible, and exotic car market, particularly on Bring a Trailer auctions.
JP kicks off the discussion by explaining how lowering interest rates often spurs borrowing and investments, leading to speculation that prices for coveted collector cars could rise sharply. He adds that cheaper financing may encourage more people to get involved in the auction scene, increasing demand for high-value cars.
Michael Deeb counters with a more cautious perspective, highlighting how the macroeconomic climate might still temper this potential boom. While lower rates could stimulate the market, he argues that buyers may remain hesitant due to broader financial concerns.
Predictions on Specific Cars:
2004 BMW M3 (E46)
JP predicts that this iconic M3 could see a modest bump in value due to renewed interest from enthusiasts. It’s already a beloved modern classic, and he believes easier financing could push the car's price into the $60K range on Bring a Trailer. Michael Deeb, however, thinks it’ll stay closer to the $50K mark, especially for examples that aren’t low-mileage or highly specced.
2022 Lamborghini Countach LPI 800-4
The hosts agree this rare hybrid hypercar has a built-in buyer base that’s less impacted by interest rates, given its elite status. JP thinks the cut could attract speculative buyers, pushing its already sky-high auction prices well over the $3 million mark. Michael Deeb is slightly more reserved but still sees it landing comfortably around $2.7-$3 million.
1974 Porsche 911 Carrera ROW (Rest of World)
A favorite of purists, the Porsche Carrera ROW already commands attention, but Michael Deeb predicts that if rates stay low, it could ignite serious competition, with values approaching $200K for well-preserved examples. JP echoes this sentiment, emphasizing that the ROW variants tend to bring a premium over U.S. models due to their rarity and driving dynamics.
1960 Daimler Ferret Mark 2/3 (Armored Scout Car)
On the quirkier end, this armored scout car stands out as a niche collector’s item. JP believes that while lower rates won’t have a huge effect on the price of military vehicles, the growing interest in unique, oddball collectibles could push it into the $40K range. Michael Deeb is more conservative, suggesting it might land closer to $30K, given its niche appeal.
The episode ends with both hosts agreeing that while the Fed’s rate cut is likely to encourage more action on Bring a Trailer, the market may not explode as dramatically as some predict, but certain segments of the collector world-like modern classics and exotics-could certainly see an uptick in prices.
Timecodes
0:55 JP asks "Will the feds lowering rates cause a price explosion in the classic collector car market on BaT"
2:10 2023 Porsche 911 GT3 Touring BaT auction results
9:07 2017 Mazda MX-5 Miata RF Grand Touring Cars & Bids auction results
14:11 2009 Porsche Cayenne GTS Cars & Bids auction results
18:40 JP explains why we have to run negative thumbnails
19:47 1988 Saab 900 Turbo BaT auction prediction
25:08 2022 Lamborghini Countach LPI 800-4 BaT Auction prediction
38:50 2004 BMW M3 PCAR Market auction prediction
49:24 1974 Porsche 911 Carrera ROW BaT auction prediction
Sponsors:
Gaudin Classic
www.gaudinclas...
Hour Smiths
www.hoursmiths...
GYX Customs
www.gyxcustoms...

[@kevinbodman1011]

Best automotive show on U-Tube.

[@AdamElDiablo]

Aventador platform and Sian

[@kevinbodman1011]

Anthony, I am interested in the watch that you built.

[@CJinSD1]

No.