The Classic Car market only sometimes follows expected trends.

19 January 2023

With inflation and expensive money, one would have thought the market was flat; in fact, it seems there are two divisions within the market; the cheaper (not the best word) classics which are affected by the economic and social environment and the very expensive classic cars.

The lower end of the market has been affected, understandably; however, with raging inflation and almost certain interest rate hike, there is an incentive for people with liquid assets and an ability to borrow money at a much more competitive rate of interest to buy assets.

Classic Motor Cars, especially with the correct provenance and beautifully and correctly restored, represent an excellent investment, as they are reasonably easy to sell, borrow against and attract no Capital Gains Tax.

Interestingly, the age group buying the ‘halo cars’ has lowered significantly. Recent data shows that the average age of a Ferrari F40 buyer is younger than the average age of the Ferrari LaFerrari buyer. Additionally, the average age for the owners of the Ferrari F50 and Lamborghini Countach has also fallen.

Interestingly a very similar trend was witnessed during the Covid-19-related global recession.