The classic car market is one which has undergone major changes over the years. Previously, the market was very popular as investing in future classics was a smart financial investment to make. Also, many people had a passion for these older automobiles and would see them as their prized possessions.
A few years ago, prices were rocketing for both classics and supercars once again, but this is now changing. The market has cooled off significantly, but experts are not anticipating a repeat of the famous market crash in the 80’s and 90’s. Those that look to classic cars as an investment are becoming deterred by the expected increase in interest rates, whilst the volatility in global markets is another deterrent for those looking to purchase a classic or supercar right now.
The other half of the classic car market is the collectors who simply want to own and look after a classic. Whilst there is still demand from this group, it seems that interest could be waning as, generally, the younger generation does not have the same interest in classics as the older generations.
Another reason for the recent dip in value is the fact that the Government have introduced plans to phase out all petrol and diesel automobiles by 2040. There has been a shift in attitude towards eco-friendly driving -this could have an impact on the classic car market as these automobiles are not as eco-friendly as modern vehicles.
Time to Buy?
With prices now dropping, however, it is a great time for those that have always dreamed of owning a classic to make the purchase. The cars are currently much more affordable than they have been in recent years, there are many for sale as owners look to sell and some are saying that the 2040 ban will never happen (it is also a long way off).
As more and more collectors look to part ways with their vehicles, it means that a collector could even look to a good commercial dealership like Motorpoint to find a classic. Commercial dealers like this do not typically compete with classic car auctions, but this could all be about to change. Popular classics like the MGB Roadster, the Mini and the Triumph Spitfire may well start to appear in dealerships like this and provide collectors with a quick and easy way to purchase.
Alternatively, these online car supermarkets are a great place to find cars that people think could rise in value and become classics in the near future. A few examples include the Mazda MX-5, the Alfa Romeo Spider and the Porsche 944. You do not have to spend a huge sum to turn a decent profit if you know which cars to invest in.
Although the classic car market is not in great health at the moment, that is not to say that things will not change again in the near future. It has been very turbulent over the last 40 years and this can be attributed to many factors. Despite this turbulence, there has been success in recent times and this goes to show that there is the potential for values to rise once again.
For those looking to buy a classic, now is a great time and especially if you are not purchasing one as an investment and instead as a collector’s item. Whilst some attitudes have changed, there will always be a lot of love and demand for classic cars.