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