Interest in classic and collector car ownership is fizzing

In contrast to the downturn in the mainstream motoring market, and a predicted 20% annual drop in new car sales, trading in the classic and collector car ‘hobbyist’ sector remains vibrant, with increasing numbers of motorists considering first-time ownership of an older, classic car, comments insurance specialist, Hagerty International Ltd.

“A well-sourced classic and collector car can accrue in value rather than depreciate, as is profoundly the case with new cars,” says Angus Forsyth, MD of the Silverstone-based firm.

“In the current climate, buying a classic car wisely can represent a good investment,” he continues. “As a consequence, we are seeing increasing interest in ownership amongst private motorists looking to join the ‘hobbyist’ movement, which currently constitutes some two million owners in the UK.”

Hagerty’s buoyant mood is also reflected by robust trading at the world’s major classic and collector car auction houses, who serve as a good barometer of the market.

Fears of a cave-in of values in the present economic doldrums has not come about, judging by sales results from the recent Barrett-Jackson auction at Scottsdale, Arizona, sponsored by Hagerty Insurance, the parent company, based in Michigan, USA, and the largest broker of classic and collector cars worldwide.

According to McKeel Hagerty, CEO: "The whole collector-car world was watching, fearing the market would fall off a cliff," he said. "It didn't, so that's a good thing.

“The days of rampant speculation, easy profit-flipping cars, and an endless buyer appetite for everything, are clearly on hold but, all in all, most industry veterans breathed a sigh of relief.”

To those interested in exploring classic car ownership, Hagerty remarked; “There are both opportunities and heartaches, which is all the more reason to carefully research and verify the information on a car you have your eye on, and buy one that you love and would be happy to keep for a period of time.”

As an aid to prospective classic car owners, Hagerty has come up with the following tips, in conjunction with classic car commentator, Dave Kinney, and re-finishing specialist, Du Pont:

A) Study auctions. "The best way to find out about car auctions is to go to one, leave your cheque book at home and listen to what people have to say," says Kinney. “Most auction houses employ experts in particular types or eras of car, who tend to be surprisingly candid about what their own inspections showed about a car.”

B) Go to events. General and marque-specific classic car shows are prevalent and the best way to eye-up a possible purchase, check prices and talk to existing owners.

C) Do your homework. Even if you manage to buy what you love, you need to know exactly what it is you're buying. “Use the internet – it's easy to conduct research on cars that was impossible 10 or 15 years ago," says Kinney.

D) Inspect carefully. Inspect the car thoroughly. Look for any anomalies or parts that aren't authentic for the year and model of the car. Anything that doesn't match your research should take the price down, says Du Pont.

E) Buy what you love. Collectors who acquire cars that have special or emotional value to them aren't going to worry as much about price fluctuations. The pleasure of owning the car will mean more than price.

F) Avoid jalopies. Trying to restore a complete wreck to showroom condition could be a major money-losing proposition. New collectors often underestimate how much it will cost to turn an ugly duckling into a swan. A restoration costs serious money, especially for tasks such as re-chroming bumpers or having parts remade from scratch, according to Du Pont.

For further information on Hagerty and its range of classic and collector car policies, and to arrange a free quotation, visit hagertyinsurance.co.uk