House prices may be about to drop, inflation is rising and the government is struggling in the opinion polls, but still the classic car auction market grows and achieves ever higher prices. Competition seems to have strengthened the market, with market leaders Bonhams responding robustly to the ever-growing H&H and the sudden arrival on the UK market of north American auctioneers RM Auctions.

Christies have withdrawn, but their motoring efforts were always rather half-hearted - they had some great sales, but not the continuity needed to justify the effort involved.

Bonhams helped themselves to the slot relinquished by Christies at Retromobile, France's premier and oh-so-stylish classic car show in February - and now we hear they've secured a very special Mercedes to headline the sale. This 1936 Mercedes-Benz 500K Cabriolet A was, incredibly bought more than 50 years ago and used frequently ever since by abstract impressionist artist Georges Matthieu.

The supercharged eight-cylinder Mercedes has recently been completely restored by André Lecoq and is estimated to sell for 900,000-1.3million euros at the Paris sale on Saturday, February 9. Bonhams has also agreed to host a special Jaguar sale at Goodwood on August 9, in conjunction with the major XK60 celebrations there www.xk60.com  More info on these sales on www.bonhams.com

Meanwhile H&H is gearing up for its first sale at Cheltenham on February 26-27, buoyed by the arrival of Marcus Ross from Bonhams. Former ad sales exec on Classic & Sports Car, Marcus ran the Classic & Historic car division at BCA (a fairly thankless task!) before joining Bonhams in 2000.

Marcus commented: "Clearly I am party to the company's exciting plans and I believe it is a perfect time to come aboard." Sounds intriguing! Certainly H&H has found a car to headline its Cheltenham Racecourse sale that more than matches the Bonhams Merc - an Alfa Romeo 6C 2300 Pescara Spider  that competed in the Mille Miglia in 1936 and was built to the special commission of Benito Mussolini! It was driven in the Mille Miglia by his chauffeur, finishing third in class and 13^th overall. The car has had just three owners since Mussolini parted with it in 1939 and has been restored to top concours standard: it's estimated at £600-800,000.

Also for sale at Cheltenham will be Colin McRae's British Championship-winning 1992 Subaru Legacy (£70-100,000) and no less than two ex-works Paddy Hopkirk-campaigned Mini-Coopers - 1964 Cooper S CRX 90B in which he drove the 1964 RAC (£40-50,000) and 1967 Cooper S OBL 45F in which he won his class on the 1969 Tour de France (£30-40,000). More info on www.handh.co.uk 

Malcolm McKay, Motorbase News Editor