Hamburg - Rare classic cars are achieving record prices at auctions as investors moving their money into material assets during these uncertain economic times.

"People who have lost trust in the stock market are putting their money into things where they hope to maintain or increase the value of their money such as in old cars," says Dieter Ritter from the German automobile club (AvD).

But there are two categories on the market. One the one hand, a rare Bugatti 57 Atlante S, which its original owner bought in 1955 for 895 British pounds (1,300 dollars), was auctioned in Paris this February for 3.4 million euros (4.45 million dollars).

On the other hand, experts say the lower end of the market, which is dominated by cars in average condition, is stagnating.

"The really good cars are fetching high prices while sellers of average cars have to lower their price expectations," says Frank Wilke, a Classic Data market analyst.

For enthusiasts with an average budget, now is a good time to buy although it is difficult or even impossible to find a really rare car at classic car dealers which goes back earlier than World War II.

Only private owners, who are in need of cash, may have to sell their collection while everyone else would hang onto a rare car nowadays, according to experts.

At the recent Techno Classica, one of Europe's big classic car events, there was keen interest in high-class cars with buyers coming from afar as Australia, Japan and South America.

"It has again been confirmed that collector automobiles are a sound investment in these times," says one of the exhibition organisers Anton Leon Franssen.

"The buyers are well informed and critical but also willing to pay the price for good quality," Franssen said.

In Germany alone, the classic car market has a turnover of about 5 billion euros (6.5 billion dollars) annually with some 350,000 cars on the road or parked in the garage that are 30 years and older.