At the beginning of the lock-down, the outlook for the classic car market was very bleak. Events were being cancelled or postponed, test drives were banned, auctions, even online ones, were suffering from exceptionally low sell through rates. A few months later, things have changed somewhat for the better, a new generation is getting used to online auctions, events are coming back, there is some hope in the air.
Price:
If you happen to own a high-end classic car, chances are you are worried about the resale value. It’s a quirk of human nature that even if we intend to keep, use never sell a car, we still want it to increase in value. While everything dropped in the first few weeks of the crisis, prices soon bounced back, now your Aston Martin DB6 4.0 is still worth the same or more than it was pre-crisis.
Classic cars are unlike other investments. You buy one gain enjoyment from owning, driving, even repairing restoring it. Financial gain should be secondary. With the long view on value, whilst prices might be depressed right now. In 2022 they are likely to skyrocket as more and more global markets are being opened up. Asian countries are more and more likely to be buyers with many large auction houses now having Chinese branches.
Events:
While many of the large car shows, which in regular times would attract many thousands are being cancelled or postponed. A lot of smaller shows are still going ahead, while it pays to check with the organizers, many shows are still pulling in the crowds. Many, car shows happen outside are proving popular as people want to escape from their homes for a day out.
Owner’s clubs
Owners’ clubs are also seeing a substantial rise in membership
as people want to stay connected to their owner community but need to do so
online. If you own a classic car, here are three of the largest driver, owner
groups.
- MG owners: for everyone who owns an MG loves the brand. They also offer classes where you can learn how to restore your car, as well as a classified section if you want to buy or sell a car.
- Jag owners: If you own a new or classic Jag, this group may be for you. They still hold several smaller events, including Track days for the more adventurous. They also offer discounts on insurance to members.
- Aston Martin club: One of the largest most professional groups. The AMOC has it’s own racing events, so if you are brave keen to race, you can enter the competition. They hold classic events, as well as inter-marque, if you want to race your DB4 against a Porsche.
The future:
As you can see, the Corona-virus has affected sales of classic cars, it has made it harder for small shops, club’s dealers to survive, but for those that can survive, the future is bright. They are not making any more 1966 Aston Martin DB5s, they will only increase in value as they become rarer. If you need to get a loan against your classic car, get in touch.
