Classic Car Values Show Investment Still Proves Worthwhile

Classic Car Prices Are Rising

While the modern motoring industry faces extremely tough times, the classic car market remains buoyant as classic marques continue to rise in value. Whilst some vehicles are purchased as an investment, others are brought for the practicality of maintaining them at home and the exemption from road tax.

Owners from all over the UK, and in some cases Europe, will bring over 1,000 classic cars to Birmingham’s NEC between 14th and 16th November 2008, for the Classic Motor Show, a showcase if ever there was one for the current state of the market.

 “Modern cars can be viewed as boring and people like the fact that classics are different,” says James Szkiller from the Classic & Sports Car Centre, an exhibitor at the show. “Although some classics are not for everyday use, we are selling a lot of cars to people as investments; they are looking at the banking crisis and they want to put their money into something safe, which they can enjoy.”

Classic cars values are soaring with the cream of the crop – such as Aston Martins and Ferraris – setting records for their price tags and they’re taking the rest of the classic car market with them.

“People who would have bought a £100k Aston DB5 eight years ago, can no longer afford today’s £250k price-tag, so they’re having to look elsewhere – and it’s this demand which is dragging everything up,” says Simon Charlesworth, editor of a classic car website.

“At the top of the market you have people buying classics as an investment and at the entry level, you have people turning to classics because they are more affordable to run and maintain – and we’re not just talking about pre 1973 cars which are exempt from road tax...

“More and more people are turning to classics because of the recession. They are far simpler and owners can maintain and repair them themselves; saving money on expensive main-dealer labour rates and buying parts which are far more affordable. Even a specialist classic agreed value insurance policy will cost you a lot less than a policy for a modern car!

“Add in heightened nostalgia from TV shows like Life On Mars and cars which haven’t traditionally been labelled ‘classics’ are also on the up. You used to be able to pick up something unloved like an Austin Allegro – as featured in BBC3’s Massive – or Maxi for under a hundred quid, but these cars are going for £7-800 and we know of a mint Maxi which is being advertised for £8495.

“It’s incredible, but then it’s always been the case that if you look after a classic then it will appreciate in value – unlike a new car. Drive a modern out of the showroom and onto the street, and you stand to lose 40 per cent of its value instantly,” says Charlesworth.

The UK’s biggest and best classic motoring extravaganza, the Classic Motor Show has over 1,000 rare and amazing cars on display from over 180 classic motoring clubs across the UK. It also hosts over 300 trade stands, a Live Stage, a Restoration Theatre and offers ‘Dream Rides’, a ten-mile ride as a passenger in a classic car in exchange for a donation for children’s charities. New for 2008 is Classic Bikes at the Classic Motor Show, a dedicated hall featuring over 200 classic bikes and scooters.

The Classic Motor Show is open from 10am until 6.30pm on Friday, 9.30am until 6.30pm on Saturday, and 9.30am until 5.30pm on Sunday. Ticket prices range from £15 when purchased in advance.