MIKE BREWER: BREXIT WILL BOOST PRICES
Britain’s best known classic dealer tips EU exit uncertainty to prompt more car purchases – here’s how it’ll affect your car
Economic uncertainty when the UK leaves the European Union next year will prompt more people to invest their money in classic cars, Mike Brewer has told CCW. The Wheeler Dealers presenter and car dealer has said that the consistently strong performance of the classic car market, particularly in the UK, is likely to be seen as a stable investment if other parts of the nation’s economy falter post-Brexit. It comes after the Governor of the Bank of England, Mark Carney, said the chances of the UK leaving the bloc without a trade deal in place is ‘uncomfortably high’. Mike said: ‘Return investment on cars, particularly in the middle sector of the market, is better than it would be with property.’
‘Return investment on cars is better than it would be for property’
Britain’s best-known car dealer believes Brexit will strengthen the UK’s classic car market. Wheeler Dealers star Mike Brewer said that he believes that uncertainties over the UK economy when the country leaves the EU next year will encourage more people to invest in classics, which will likely lead to an increase in prices similar to the one seen following the financial crisis in 2008-10.
In an exclusive interview with CCW, he said: ‘I think Brexit is going to improve the classic market for a number of reasons. People are fearful of what the Government is going to do, and what to do with their money, and we’ve seen that banks can go to the wall and that people lose money.
‘If I tell you that you can put your money in a bank and maybe get a one per cent return, or put it into a classic car and get more like ten or 15 per cent, where are you going to put your money? Return investment on cars, particularly in that middle sector of the market, is better than it is with property.’ Keith Murray, auction manager of Perth-based classic auctioneer Morris Leslie said: ‘I don’t agree with Mike Brewer on everything, but he’s absolutely right here.
‘I can remember what happened in the 1970s when we were going into Europe and there being all the uncertainty then – the classic car market wasn’t as big as it is now, but there were a lot of people who didn’t know what was going to happen, and were looking for the safest place to put their money.
‘ What’s happening with Brexit is exactly the same situation in reverse, and we’re seeing exactly the same thing happening with investors. These people are definitely going to look at classics, and see them as a safe investment.’
But CCW auction expert Richard Hudson-Evans believes that it’s unlikely there’ll be a move in investments into classics, and cautioned that the market’s uncertainty over Brexit means that other scenarios are also plausible.
‘The simple answer with Brexit is that nobody knows what’s going to happen – we could end up leaving with a deal that’s positive for the market, or not leaving at all. I’d also challenge the idea that banks can go to the wall and that it’s unlikely we’ll see what happened with Northern Rock. Most peoples’ money is protected up to a certain amount, and that will cover most people who are buying classics.
‘It’s also true to say that most people who buy and run classics don’t actually make that ugly word – profit – because the reality is that the costs involved, even on something as humble as an Austin A35, outweigh any on-paper profit. What may happen is that the continental voices I hear at classic auctions right now start to fade away because buying here becomes less attractive – but the emphasis is on “may”.’