The market is still very active and customers are still investing in big numbers in restoration of their classic cars so see no reason for change here in 2018. Whether it’s a humble British sports car or an exotic Ferrari from the 60s, things look good for the sector which is now worth about £5.5bn to the British economy.
We are seeing investment at the top of the classic car market from clients very much viewing exotic cars along similar lines to famous artwork. Although I think it will be a while before we see market reaching the exulted heights of the top end of the artwork and painting world. 2017 saw $460m paid for a Leonardo Da Vinci and at the top of the classic car market, a Ferrari GTO sold for $38m so not even 10% of the top price paid in the art world. We have a long way to go but I think classic exotic cars are every bit as important and represent a great investment opportunity for those lucky (and wealthy) enough to indulge their passion in the classic car market. Lets see what happens over the next few years but I can see the most exotic Ferrari’s, Maserati’s and Jaguar’s reaching £40m in the next 10 years. If you are lucky enough to own one, hang on to it!
The market has changed towards seeing cars as works of art now and therefore at the values of £38m for a GTO, the risks associated with racing these wonderful cars, apart from a few dedicated folk, is too high. What this is doing is creating a potentially very lucrative market in recreations and resurrection which personally I’m all for. If done by top restorers, and result in looking absolutely indistinguishable from the original car, then what’s the problem in terms of racing these cars? Otherwise in the future we will not see GTOs, lightweight E-Types or Cobras all racing together as they currently do in many FIA races across the globe. You can’t blame the owners of the absolute original cars for not racing them as they were intended to be with values continuing to rise to the levels they are now and beyond. What this does create is an undercurrent of fantastic resurrected cars that look exactly like the originals which paying customers at meetings like Goodwood Revival will continue to be able to enjoy for years to come as they produce a spectacle of door-to-door racing in epic cars from the 50s, 60s and 70s.
A Jaguar lightweight sold last year for nearly $8m. Jaguar recreated 6 extra E-type lightweights and they all sold for close to £1.5m a couple of years ago. So major manufacturers are seeing the value in their heritage and in many cases turning to great classic car specialist restorers to assist with various elements of construction, again keeping the industry thriving. Watch this space but I think great recreations and resurrection cars are only going to continue to rise in value and in a way, they are creating a new market in the classic car sector. Long may it continue!
Regarding investment in other areas of the classic car sector, I’m often asked what will do well and where people with a passion for cars would invest. I think there are still opportunities at all levels of the market. I can’t cover all the values but here are a few examples of where there may be opportunities:
Interestingly, values of the Jaguar Series 1 2+2 have also been rising considerably this year. The reason I’m told is the door aperture is much larger, allowing buyers of a larger build, and pushing on in years, to get into the cars more easily to enjoy the Jaguar experience! The cars were also very undervalued until recently against standard roadsters and coupes.
Anyway I hope a little insight to the market is helpful for those of you who follow the sector. No doubt many will be dusting down and repairing classic cars and keeping the restoration companies busy over the winter and early spring. So it’s time to get out there and enjoy your car throughout 2018. A regularly driven car is a much nicer driving experience than a garage queen left languishing under covers or in a Carcoon in a dark garage or barn somewhere out of mind.
Have a great 2018.