As we were bidding 2016 farewell, the figures from the UK Hagerty Price Guide revealed a classic car market in rude shape. Values of 1970s and 1980s cars strengthened in the last quarter of the year; having seen prices of many cars chill and business in auction rooms tail off, buyers have now regained confidence.
Managing director of Hagerty, Marcus Forsyth, said: “We’ve seen confidence return to the classic car market in the last few months of 2016 after a summer of uncertainty we believe the third quarter results were a reflection on people holding back following the initial uncertainty of the Brexit vote in June.”
Angus continued: “However, now the financial markets have settled, people have bought into the car market, albeit a few months later than they might have planned. Whether people still feel classics make good investments, or they just want to put their money into something fun, they are still definitely buying, and the values of the best classics are still on the rise.”
“The trend for later classics – from the ’80s and ’90s – is also still continuing strongly. These cars are becoming the mainstays of the classic car market, and are attracting new owners. We are changing our policies to suit these cars and to make sure our policies suit the clients’ requirements.”
Hagerty values classics according to condition – graded from 1 (concours) to 4 (fair). It’s the former which have seen the strongest increase in value from the 1785 cars currently on its database.
Across its full price guide, Condition 1 cars achieved an average price increase of 1.8 per cent in the last quarter of 2016. Condition 4 cars managed an average increase of only 0.7 per cent in the same period of time
Out of these cars, 50 have been compiled into the Hagerty Classic Index. Launched this time last year, Hagerty bills the Classic Index as ‘representative of the enthusiasts’ market in the UK’, according to its online content editor John Mayhead. He added that ‘only one model has an average value of over £100,000 and the vast majority are under £25,000′.
Hagerty’s figures tally with the findings of the National Historic Vehicle Survey (NHVS) 2016 commissioned by the Federation of Historic Vehicle Clubs (FBHVC); of 30 years old or later historic vehicles it covered, the average value of classics surveyed was £17,000, with 53 per cent worth £10,000 or less.