2018 started very strong for auctions houses. In the second week of January, British Car Auctions (BCA) reported a new record as 25,500 vehicles went under the hammer across their network in a single week.
Supercars and vintage racers have been performing well. What’s more, they appear to be a sound investment, even in today’s fluctuating market. Could one be the right choice for you?
High-value vehicles have performed particularly well at auction houses throughout the country in 2017. Demand seems particularly strong for luxury vehicles and supercars. The most prestigious brands are well represented – Aston Martin, Bentley, Rolls-Royce, Porsche to name a few. According to BCA, 65% of the high-value cars were bought by live online bidders, and the sold price outperformed the guidelines by up to 18%.
Classic Cars are increasingly popular – and can be a bit on the pricey side
A study by Carbuyer reveals that the Jaguar E type is an absolute favourite, by far: nearly a third of the respondents who took the survey voted for it as the greatest ever classic car. The Aston Martin DB5 came second, followed by the Porsche 911, the original MINI and the Ford Escort Mexico.
Classic cars are as popular as ever and deliver very well at auctions. Regularly, nowadays, we see cars fetching in excess of £1,000,000. Maybe unsurprisingly, half of these highest value vehicles are Ferraris. On the 9th February in Paris, a rare 1958 Ferrari 250 GT Cabriolet Series 1 by Pinin Farina was offered at auction for a 7-9M€ guide price! The good news is, it didn’t sell, so it could still become yours… This is an extremely rare convertible, only 40 of these were ever built, and just 11 still remain today as “matching numbers” (i.e. with their original engine, gearbox and axle).
If this is a little out of your price range, worry not, there are plenty of other options and great “bargains” out there: you could bag a Gordini (Renault 5 Alpine Turbo) for less than £15,000, or an iconic Porsche 944 for less than £5,000.
Vintage motors: a sound investment
As you no doubt know classic cars are an investment, as they tend to sustain – or even increase – their value very well. This asset class is a steady and strong performer, outranking other types of alternative investments (such as wine and fine art). Acquiring such vehicles for yourself or the forecourt could prove very lucrative and profitable in the long run.
Before you go to the auction, make sure you do your research though, as you don’t want to overspend, acquire a model that will prove particularly difficult to sell due to lack of provenance (verification of a genuine history), or that will prove impossible to maintain or restore.