EX­PERTS CALL TIME ON HIGH CLAS­SIC PRICES

Na­tion’s val­u­a­tion ex­perts re­port fall­ing val­ues for up­mar­ket clas­sics – but it’s good news for fans of cheaper Brit sports cars

Classic Car Weekly (UK) - - Front Page - Mur­ray Scul­lion

Val­ues of clas­sics, in­clud­ing the Austin-Healey 3000, Rolls-Royce Sil­ver Shadow and Jaguar E-type S3, are likely to soften over the next few months, some of Bri­tain’s top price ex­perts pre­dict.

Prices tracked by Hagerty In­ter­na­tional re­veal a re­duc­tion in de­mand for some mod­els that have en­joyed surges in value over the last three years – but the good news is that prices for cheaper clas­sics, such as the Tri­umph Stag, are sta­ble and still ris­ing.

Hagerty price guide ex­pert, John May­head, says: ‘Some of these £50k cars are likely to be be dropped. We’re sens­ing some con­sol­i­da­tion, pos­si­bly due to global un­cer­tainty – this could lead to a glut of mod­els be­ing placed onto the mar­ket.'

JOHN MAY­HEAD, HAGERTY ‘Some of these cars are likely to be dropped if they de­pre­ci­ate’

Peo­ple buy­ing circa £50,000 clas­sics as in­vest­ments are start­ing to look else­where as 2017’s fi­nan­cial in­sta­bil­i­ties are felt.

In­vestors who piled cash into the thriv­ing mar­ket in 2014-2016 are look­ing to drop those in­vest­ments as they start to de­pre­ci­ate, ac­cord­ing to the lat­est sta­tis­ti­cal anal­y­sis by clas­sic car in­surer and val­uer, Hagerty.

As noted in CCW (5 July), the clas­sic car com­mu­nity is re­port­ing that peo­ple are less will­ing to spend money on cars be­cause of elec­tions, bad news, and the Bank of Eng­land or­der­ing banks to set aside £11.4bn over fears of ris­ing con­sumer credit.

Hagerty price guide guru, John May­head, says: ‘Some of these £50k cars are likely to be bought as in­vest­ments, and will be dropped if those in­vest­ments start to de­pre­ci­ate. We’re sens­ing some con­sol­i­da­tion, pos­si­bly due to global un­cer­tainty. As a re­sult, the very best ex­am­ples of every­thing are sell­ing very well but less-than-per­fect cars are strug­gling. This could lead to a glut of mod­els be­ing placed back onto the mar­ket.

‘ We’ve seen a heck of a lot of Fer­raris sold in May and June – 348s, Tes­tarossas and Mon­di­als, mostly. A year ago, Tes­tarossas were eas­ily worth £175,000 – and now some are chang­ing hands for as low as £120,000.’

Mar­kets ed­i­tor, Richard Bar­nett, thinks that this could lead to some clas­sics be­com­ing cheaper in the fu­ture. He says: ‘I would think there will be more than a few com­ing on to the mar­ket, which is good for the en­thu­si­ast. There will hope­fully be a repa­tri­a­tion of clas­sics back to en­thu­si­asts and away from the red cor­duroy trouser-wear­ing lot.’

Clas­sic Car Auc­tions, spe­cialises in ‘ev­ery­man’ clas­sics priced at £50,000 and be­low, says it has also seen an in­crease in the num­ber of clas­sics com­ing onto the mar­ket. Sales rates have im­proved by five per cent from June 2016 to June 2017, some­thing it sees con­tin­u­ing in the fu­ture. Sales man­ager, Garry Dunne, says: ‘I do agree that right now this mar­ket is very buoy­ant. We are see­ing an up­turn in the vol­ume of cars con­signed and sold at our sales that fall into the higher reaches of our own field. The £50,000 level of the mar­ket seems health­ier than ever right now.’ Else­where in the mar­ket, sub £30,000 cars are con­tin­u­ing to sta­bilise, with some hav­ing size­able in­creases. One such ex­am­ple is the Tri­umph Stag. In late 2014, good ex­am­ples were worth around £10,250, whereas now they’re worth around £13,525. Hagerty sug­gests that these rises are sus­tain­able, but are un­likely to al­ter sig­nif­i­cantly in the short to medium term.

What Hagerty calls ‘un­ex­ep­tional’ cars – mass-mar­ket cars that are now sought af­ter due to their rar­ity – have also been tipped as a mar­ket growth area. An ex­am­ple of this is the Austin Al­le­gro, which has dou­bled in value from around £1000 to £2000 in less than two years. The hum­ble Ford Granada Ghia MkIII has also seen growth – ris­ing from an av­er­age value of £4525 in May 2015 to £5525 two years later.

Less-than-per­fect Austin-Healey 3000s could be sell­ing at auc­tion next year for less than £46,000.

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