What is happening to the Classic Car Market?
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Dear Classic Car Enthusiasts, Collectors and Followers
The classic car market is currently experiencing a mix of trends across all sections, from high-end and modern classics, to independent dealers and auctions.
Globally, the classic car market is expected to grow at a rate of 8.7%* in the coming years. In the UK, the classic car market (dealers, not including auctions) is expected to be worth £2 billion according to market research in 2024.
The obvious question to ask is, therefore, is there a downturn in the market or is it all speculation?
We still hear the market is down after COVID but are also occasionally told that it has picked up during COVID. What has really happened?
We have noticed that some high-value cars are selling below the recognised market value, while others are setting record sales. The common denominator for the latter, as always, is unique history, documented provenance, or limited production: these cars are selling for top dollar.
Modern classics are becoming more popular and accessible, though it’s hard to say whether that is attracting new generations of car enthusiasts, or perhaps it’s the other way around, with the interest feeding demand. At the other end of the spectrum, pre-war and historic cars are suffering.
Stimulating questions are:
Do social media have an influence on trends in the classic car market, with consumers adopting similar preferences?
Is nostalgia playing a part in the driving force behind the resurgence of interest in classic cars? We still think the investment opportunity is much to blame, at least in the early days, for the tendency to deal with classic cars for a quick buck.
Are classic cars seen as culturally significant?
As demand went up, some people paid over the odds to get the car they wanted, and sellers responded by hiking their prices; this meant that, for a time, buyers played the game. Then, real life (and the cost-of-living crisis) hit home. Bills rose, mortgage rates
went up and fuel prices soared. Buyers started to be much more careful with their purchases.
Auctions jumped on the bandwagon and priced cars to sell, which affected the whole market, as a result prices started to fall, a direction fuelled by perception as the press reported extensively on the downturn of the classic car market.
The auction world is looking quite suspect, and the coming months will shed significant light: let's just hope the classic car market will not be affected by the number of cars NOT selling through its channels.
If you are considering buying or selling a classic car and want some sound advice, or if you are thinking of restoring a classic and are having second thoughts, we can help, as we have been there and experienced the lows and highs.
Classicmobilia will be at the Classic Car Show at the NEC Birmingham, 8/10 November 2024, so come along and see us.
Happy motoring
Keith
keith@classicmobilia.com
+44(0)7889 805432
+44(0)1908 270672
www.classicmobilia.com
About Keith:
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