TRADERS FEAR CLASSIC SALES ARE COOLING
Auctioneers and dealers report a reduced appetite for older cars – and they’re blaming it on Britain’s uncertain economy
Classic car market experts are reporting more hesitant trading conditions due to uncertain prospects for the economy. Auction analyst, Richard Hudson-Evans, says: ‘Nearly everything is down at the moment. Retail is down, shares, savings, and new car sales. Bad news and political instability leads to people wanting to spend less money.’
Classic auctioneer Charterhouse says that while the continental market remains strong, buyers in the UK are pausing due to market uncertainty. Matthew Whitney, associate director, says: ‘ We reckon the market has cooled 15 per cent year on year at the moment. But it’s certainly not fallen off the edge of a cliff.’
‘ We could well see a spike in people defaulting on their car loans’
Auction houses, dealers, and even private sellers are reporting that buyers are less willing to part with their cash – and they’re putting it all down to political instability.
Elections, bad news, and the Bank of England ordering banks to set aside £11.4bn over fears of rising consumer credit are all major factors in the classic market’s current instability
Auction analyst, Richard Hudson-Evans, says: ‘Nearly everything is down at the moment – retail, shares, savings and even new car sales. Bad news and political instability lead to people wanting to spend less money.’
Classic auctioneer Charterhouse says that while the continental market remains strong, buyers in the UK are pausing due to market uncertainty.
Associate director, Matthew Whitney, says: ‘ We reckon the market has cooled 15 per cent year on year at the moment. But it’s certainly not fallen off the edge of a cliff.’
Richard Hickinbotham recently struggled to sell his Triumph Roadster. He says: ‘I believe the market is already on the slide. I think consumers are worried and more careful with their money as we are in uncertain times. Due to health issues, I advertised my very nicely restored Triumph Roadster for some time, at a price around £5000 lower than comparable examples. Not one person came to view the car. ‘I can only think this is happening due to rising prices elsewhere. In desperation, I advertised my car on a well-known auction site, but still had no viewers. In the end, I had to sell it at a big loss.’ As reported in CCW on 17 May, a growing number of enthusiasts are looking to loans in order to buy classics. Since then, the Bank of England has ordered banks to set aside £11.4bn over fears of rising consumer credit. This includes finance used for classic purchases.
Alex Buttle, director of car buying website motorway.co.uk, says: ‘The growth of car finance over the past few years has been astronomical, and the level of consumer debt this is causing is getting out of hand.
‘Despite the many hidden costs, it’s hard to resist the temptation of owning a car without having to find tens of thousands of pounds upfront to pay for it.
‘If people really do start to struggle financially, then the priority will be keeping a roof over their heads, and they are far more likely to default on a car loan than a mortgage.
‘ We could well see a spike in people defaulting on their car loans in favour of losing their home if the economic climate takes a turn for the worst.’
But Yorkshire dealer Classic and Sportscar Centre says that while it experienced a brief downturn in trade during the election, trade is now particularly buoyant.
Manager James Szkiler says:‘In June we sold 32 classics, whereas normally we’d be selling between 15 and 20 at this time of year. For us it’s been particularly busy.’