FORD, PEU­GEOT PRICES RISE AS FER­RARIS FALL

Val­ues of hum­ble mar­ques on the up while high-end cars suf­fer, says lat­est re­search

Classic Car Weekly (UK) - - Front Page -

New mar­ket re­search shows a sharp fall in the prices of ex­clu­sive clas­sics but con­firms that many worka­day cars are soar­ing in value.

The lat­est price guide from Hagerty re­ports that ex­otics such as Fer­raris and top-end 911s have lost value for the first time in six years.

The big­gest win­ner is the Peu­geot 205GTI which reg­is­tered a 36.5% up­lift since De­cem­ber 15. The Porsche 944 Turbo is up by 26.5% – a trend that all front-en­gined Porsches are fol­low­ing.

One clas­sic seg­ment iden­ti­fied as un­der-val­ued is the Ital­ian nonFer­rari mar­ket. John May­head, head of Hagerty’s price guide ex­plains: ‘Lan­cias still seem very cheap – the Ful­via Sport Za­gato 1.6 rose all of 1.5% this quar­ter. There are some very pretty mod­els bod­ied by Pin­in­fa­rina, Za­gato and Vig­nale that seem to be good value.’

New re­search shows that prices of worka­day clas­sics are ris­ing while some high-end ex­otics are suf­fer­ing a sharp drop in value.

Price guide au­thor­ity Hagerty has re­ported in its lat­est price guide that Fer­raris, Mercedes-Benz and Porsches of­ten bought as in­vest­ments have all lost value for the first time in six years.

By con­trast, plenty of the more ac­ces­si­ble clas­sics are soar­ing. The big­gest win­ner is the Peu­geot 205GTI which reg­is­tered a 36.5% up­lift since De­cem­ber 15. The Porsche 944 Turbo is also up, by a whop­ping 26.5% – a trend that other front-en­gined Porsches are fol­low­ing. The rise of fast Fords has been well doc­u­mented in re­cent is­sues.

CCW’s auc­tion an­a­lyst Richard Hud­son-Evans agrees with the find­ings of Hagerty, but urges own­ers to think log­i­cally. He says: ‘Some lower-end cars are cer­tainly on the up – but con­di­tion is key. Ones sell­ing for big money are in spec­tac­u­lar con­di­tion. Lower end cars in av­er­age con­di­tion have de­creased sig­ni­cantly in the past nine months by about 20% ac­cord­ing to my own cal­cu­la­tions. The mar­ket is all about per­cep­tion of qual­ity, and his­tory.’ One seg­ment that seems like a wise in­vest­ment is the non-Fer­rari Ital­ian mar­ket. John May­head, head of Hagerty’s price guide, says: ‘Lan­cias still seem very cheap – the Ful­via Sport Za­gato 1.6 rose all of 1.5% this quar­ter. Maybe there is a prob­lem with the Lancia rep­u­ta­tion that goes all the way back to the Beta re­call - but there are some very pretty mod­els bod­ied by Pin­in­fa­rina, Za­gato and Vig­nale that seem to be good value.’

The fall of ex­otics such as Fer­rari – in con­trast to the past five to 10 years when they have been among the big­gest

ris­ers – could be due to a ‘bring out your dead’ phe­nom­e­non. Some cars that have risen in price dra­mat­i­cally, like Fer­rari Tes­tarossas and 1980s Porsche 911s, are now flood­ing the mar­ket and con­se­quently low­er­ing prices. For ex­am­ple, in Hagerty’s lat­est in­dex the Fer­rari Tes­tarossa has dropped 7.7% from De­cem­ber 2015 and the DeLorean DMC 12 dropped 1.3%.

One auc­tion in­sider crit­i­cised the anal­y­sis: ‘The prob­lem with th­ese eval­u­a­tions is that they can be skewed by auc­tions and truly high-end cars rarely find them­selves at auc­tion.’

Peu­geot 205GTI +36.5% Porsche 944 Turbo +26.5% Range Rover 2-door +13.7% Porsche 930 911 Turbo Targa -14% Fer­rari Tes­tarossa -7.7% DeLorean DMC 12 I -1.3%

Peu­geot 205GTI is the dar­ling of the auc­tion scene: prices are up by 36.5% from last year.

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