If there is a market that seems to be unaffected by the COVID-19 pandemic, it is in the UK classic car market as revealed by the latest UK Hagerty Price Guide. The guide which has tracked more than 40,000 classic car values showed a total worth of £570m.
Much like in any industry, the classic car market had to quickly move into the digital world. Companies who have already migrated online and have invested in high-quality online selling platforms and those that were able to quickly adapt to the changes have performed well. Those who chose to play the waiting game ended up slowly realizing that the world has a new normal and it will not be the same again.
Unlike other industries, data has shown that there is actually a noteworthy increase of market activity especially when compared to 2019. Since classic cars are predominantly an emotional purchase, and given that COVID-19 is an emotional time, it is not surprising that, according to data from auction results, statements from dealers, and anecdotal evidence from enthusiasts; the market for sub-£100,000 classic car is active.
After monitoring the top 50 cars that are most indicative of the UK market, the Hagerty UK Classic Index has revealed that despite a time of unprecedented uncertainty, the classic car market has proved remarkably resilient. Since their report last May 2020, an overall rise of 0.85% on the average (mean) values was shown. Six cars raised in value, nine cars fell, while 35 remained static.
Except for one, all the cars that rose in value are all ‘modern classics.’ Modern classes are those considered to be aspirational performance cars that is reminiscent of the 1980s era that buyers in their 40s want to own. Only the Morgan 4/4 which reported a modest increase in value is the exception.
The classic cars that dropped in value are actually the cars that already save a rapid price acceleration in the last decade. An example of this is the dwindling popularity of the Land Rovers and Range Rovers, as their prices seem to have flattened.
Most of the cars that are within the Classic Index have not changed, though it should be noted that some of those are at the end of a period of consistent value movement. The value of the Ferrari 308GTB which has seen a downward trend has finally flattened, similar to the Willys MB Jeep. The BMW2002tii which has previously shown a steady rise, and the dramatic gains of the Ford Sierra RS Cosworth have also seemed to abate.
Accounting for inflation, the static price of the Ford Escort Mexico showed a small drop in real value.
According to the UK Hagerty Price Guided (issue 21), there is a minor downwards shift of 0.47% as the mean value recorded dropped from £239,798 to £238,683. There were a total of 40,332 classic car values that were registered between 1923 to 2005.
Since the last HPG update that was released in May, the values of MGAs have improved, with many recent auctions performing well. From the 13 that were offered since May, it has been reported that there were only 4 no-sales.
The result of this is the rise in the HPG average of £27,125 from £25,125 of the standard 1500 roadster, while Twin-cam values rose to £60,00 from £54,700.
The variants of the Front-engine Porsche (924, 944, and 928) have seen an increase across the board. An increase from £8,100 to £8,550 was seen on the Porsche 924 Lux.
Unfortunately, almost every variant of the Aston Martin DB6 fell in value, except rarest models include Short Chassis Volante and the Vantage Volantes. The most affected is the M k I standard saloons as their price range dropped to £142,00-£335,00 from £175,000-£400,000.
Since the lockdown, it looks as if the top of the European classic car market is very much afloat. There was only one failed car the failed to sell amongst the four classic (pre-1990) cars that were offered at the European public auctions. The highlight was on the right-hand drive 1972 Lamborghini Miura SV which was sold for £1.91m at the Silverstone Auctions, a whopping £200,000 above the HPG top value for the model.
Hagerty UK Classic Index Report Highlights
|VW Golf GTi Mk 1 1.6||Rise of 13.82% in quarter (avg value up from £15,200 to £17,300)|
|Audi Quattro||Rise 3.84% (£46,225 to £48,000)|
|Morgan 4/4 Series V||Rise 2.13% (£28,225 to £28,825)|
|Porsche 944 Turbo||Rise 1.45% (£20,625 to £20,925)|
|Peugeot 205 GTI 1.6||Rise 2.13% (£28,225 to £28,825)|
|DeLorean DMC 12||Down 6.82% in quarter (avg value down from £30,262 to £28,200)|
|Daimler SP250 Dart||Down 5.26% (£41,337 to £39,162)|
|Range Rover Classic 2 door||Down 4.97% (£38,750 to £36,825)|
|Aston Martin Lagonda S2||Down 2.37% (£53,798 to £52,525)|
|Land Rover Series 1||Down 1.35% (£29,700 to £29,300)|
|BMW 2002 tii||Previously up 4.26% and 0.68% in last two updates (avg £29,575)|
|Ford Sierra RS Cosworth||Previously up 13.74% and 3.64% (avg £48,550)|
|Willys MB Jeep||Previously down -8.61% and -4.31% (avg £21,075)|
|Ferrari 308 GTB standard||Previously down -2.62% and -2.97% (avg £52,250)|
|Ford Escort Mexico||Now unchanged since Feb 2018 (avg £29,800)|