Classic cars market feeling the pinch

Classic car values are feeling the pinch today, just as many other markets which have fallen. Think of brown furniture and paintings, along with grandfather clocks and memorabilia.
Not all sectors of the classic car market have dropped, however, and some have actually risen with several remarkable examples, as I will point out. But first, the reasons for the fall are actually a re-alignment with pre-Covid prices.
Many commodities, notably caravans, mobile homes, large country houses and even pedigree dogs boomed during lockdown. Worryingly, I heard that many so-called classic car investors used Covid grants or borrowed on the back of cheap finance rates to fund purchases.
Where there is a good supply of vehicles, such as MG and Triumph sportscars, or the Land Rover Defender and Jaguar XJS, drops of around 15-20% are prevalent. However other examples, notably Mercedes SL’s from the 1960’s through to the 1980’s and any air cooled Porsche 911 have held firm or even risen in value.
The utilitarian Mercedes G Wagon, a good rival to any Land Rover, has global appeal with strong values, if accompanied with good history, originality and a decent specification. I brought one such model to a recent Historics auction with a guide price of £13-16,000, only to find it was bid to £27,000 plus fees. What was fascinating about this sale was that all four G Wagons on offer that day were snapped up by the same buyer.
Other emerging favourites bucking the trend are fast Ford’s from the 1980’s and 1990’s where today’s buyers can afford what they dreamt about when they were teenagers. RS500 Cosworths can reach £90,000 but be careful where you park it. They are just as appealing to thieves now as they always were.
Regular classics, such as open topped sport cars will seasonally quieten down now until next Spring and we will all be watching the Cost of Living crisis and interest rates. since these factors affect our market just as much as any other commodity.
However, enjoyment and use of your classic is always more important than actual values.