CLASSIC CAR VALUES by Andrew Roberts

A few weeks ago, we reported on how two Ford Capri 3.0S Mk. IIIs from The Professionals are expected to fetch £200,000 - £230,000 at the Silverstone Auction next month. Such figures would have probably been unthinkable ten years ago, and in a recent global report The Classic Valuer states:

The median price for a classic car rose 22.5% in the first half of 2023 vs the same period in 2023, according to The Classic Valuer. Despite significant headwinds of high inflation, interest rate rises, and a cost-of-living crisis, prices for classic cars have remained strong, seeing their strongest performance in years. The median price of classic cars sold in the first half of 2023 was £27,270, up from £22,256 in the first half of 2022. Prices in the market have “been driven partly by a tightening in supply, with 29% fewer vehicles coming to the market than the year before” leading to higher prices for a limited stock, said Giles Gunning, CEO of The Classic Valuer.

Any reader who follows reports of classic car auctions in the press will have noted these trends. James Walshe, the Deputy Editor of Practical Classics and the Head of Bauer Media’s Classic Car Hub, reflects:

I write our monthly buying guides and we are seeing particular growth areas in everyday classics: cars such as the Morris Minor, the Ford Fiesta and the Escort etc.. Of course, nostalgia is a major factor, but some have begun to consider them as investments. There is, for instance, evidence to suggest that a collector is sniffing around for classics such as an early Austin Allegro. Its unique place in British culture makes it every bit as beguiling to some as a Raleigh Chopper or a Vivienne Westwood dress. However, it’s worth remembering that just because one wealthy, over-excited collector pays big bucks for a car, as in the case of those Capris, it doesn’t suddenly mean all examples are worth a fortune.

A further element affecting car values is the market’s changing demographic, and James has noted a considerable interest in models from the 1990s and early 2000s over the past few years:

We have just featured a group of cars launched 25 years ago in Practical Classics. One example of a 1998 car increasing in value is the Rover 75, which – being the last great Rover - is now highly prized. While not silly money, the days of finding a tidy 75 in Autotrader for £1000 are over; you would need nearer £3,500-£5,000 for a cherished example. Fords are another interesting case in point, and we often find the ‘hot’ models inflate the price of the cheaper versions. I acquired my standard Ford Puma 1.7 for £500 in 2019, which would no longer be the case today, while the hot ‘Racing Puma’ fetches up to £30,000 now. The same happens with every generation of Ford. The RS2000, XR2, XR3i, Focus RS and Sierra Cosworth all rocketed first, followed by a value rise among the more mundane models.

This new wave of classic enthusiasts is also greatly interested in German cars of a certain age. James describes them as “kids who grew up travelling in the back of the family A4 or 5-Series”. Standard BMW saloons, especially those from the 1990s, are ‘on the up’, while the original Audi TT is now becoming collectable. As for older generations of classic cars:

We are noting changes there, too, a case being the Citroën Traction Avant, which seems to sell for much less than the DS, despite it being equally iconic. What appears to be happening as those older motorists who recall certain types of car sadly pass on, the focus changes – in time, we will probably see this happen with vehicles of the 1960s and 1970s.

Further factors impacting classic car values are the scrappage schemes that resulted in the demise of thousands of 1980s and 1990s cars and the state of the very healthy used vehicle market post-Pandemic. James points out, “It is now virtually impossible to find a good used car with an MOT for £500, and even a base sum of £1,500 could mean a fairly rough vehicle”.

So, if you have an BMW 3-series, early Ford Mondeo, Rover Streetwise or Vauxhall Nova in your garage; it might be as well to keep it for the next few years…

With Thanks To: James Walshe