Nat Barnes advises on what to bear in mind when buying a classic car.
“This motor’s got all the extras – there’s a bidet, plus skin and wind on the inside, and I know it looks like it’s had a Joseph, but I’ll knock a monkey off if you’re paying cash.”*
Don’t worry – you won’t need to learn how to speak like Arthur Daley to find a good deal when looking to invest in a classic car. While 2016 saw a slight slowdown for classic car prices, that was only compared with the recent boom years and still meant growth of 9 per cent. And that’s against the backdrop of a 151 per cent growth rate in the past five years, according to the 2017 Knight Frank Wealth Report.
What’s more, most experts agree the slowdown has meant a “weeding out” of those buying classic cars just for their investment potential and a return of genuine enthusiasts and collectors. The result is a more stable and predictable market, and a perfect time to invest in a classic set of wheels for the longer term.
Useable investment
Unlike wine, coins or art, a classic car is one of the few investments you can use on a regular basis. With some models, mileage is a factor, but as long you’re not using it for your daily 100-mile commute on the M25, then taking it out on high days and holidays is no bad thing. In fact, regular use can help to keep a car in good health.
What to choose
Ask ten classic experts which cars are best to invest in and you’ll get ten different answers – still, most agree that the £20,000-£50,000 sector is particularly buoyant at present. There are plenty of classics available for less than that, too. Demand for some models such as air-cooled Porsche 911s continues to grow unabated, but don’t think you need to go for something with an exotic badge – 1980s hot hatches are in high demand, with Peugeot 205 GTIs, Lancia Integrales and Ford Escort RS Turbos all enjoying strong – and growing – prices.
Buy to sell
Classic cars are no different to any other major investment – you need to buy with a view to selling, even if you’re not planning on turning it around quickly. It’s important to buy something you like but if that means a bright pink Morris Marina for £10,000 then perhaps it’s best to keep your emotions in check and your wallet in your pocket. You will broaden your resale chances by not buying an unusual car, odd colour or strange specification.
At the same time, if you’ve always dreamt of owning an original Mini Cooper, Fiat 500 or MGB Roadster, then do so and enjoy it, but don’t expect to be shopping for a Caribbean island on any future profits soon. Some more popular classics won’t enjoy the same levels of growth simply because of the large numbers available.
Caveat emptor
The old adage of second-hand car-buying – “buyer beware” – still applies. Do your homework, check every car thoroughly or get an expert to look at it. Buying a modern car that’s a lemon can be expensive, but buying a bad classic car can be ruinous. If it doesn’t feel right, then don’t be afraid to walk away. n
*Translation: bidet = rear wash wiper, skin = leather seats, wind = air conditioning, Joseph [coat of many colours] = suspected respray, monkey = £500
