For our third instalment of this series, we take a break from our commissioned research to address some of the comments raised in previous posts – after all, these are the same sort of comments that raised the issues we are discussing in the first place.
From the feedback we’ve had about our blog series, we’ve taken three key areas to tackle and broken them down into three blog posts:
1. Why is no one in the industry talking about the potential cliff edge of future car ownership?
The Sub text – Out with the old, in with the new…?
As mentioned in a previous post, the average age range of a classic car owner is roughly 50 to 70 years old. Those in the market now have probably got enough time to enjoy their cars and sell before any of the longer looming issues of the industry arise, possibly turning a profit in the process.
Fig 1. Comment by user:
“I’ve been wondering what the future holds for Classic Cars… I do see problems in store for future business. Fortunately those issues will not maybe affect me as by that time I expect I’ll have my pipe and slippers!”
The same may be true for some dealers of a similar age – why be concerned with an issue when it won’t affect you? Make hay while the sun shines, make your profit and retire. They are aging, they’ve made their money, and they don’t care about the state of the industry 20 years’ time. Much better to instead get involved with the classic car price hysteria and keep pushing the hype, which often only truly relates to blue chip cars…
“We are proud to offer this 1950 Jaguar 3½ Litre Mark IV Drophead Coupe to the most astute collector, investor or enthusiast who appreciates the appeal of this iconic model. Ready to make an investment that you can actually enjoy? Classic cars have proven to be among the most resilient and rewarding investments in recent years with the Historic Automobile Group Index (HAGI) jumping 39% in 2013, 16% in 2014 and 17% in 2015 while posting gains of 467% over the last 10 years.”
However it is important not to forget the new breed of enthusiast, and the new breed of dealer. We must take a step back from the mainstream classic car ‘bubble’ and consider the younger generation who have never lusted after a Stag, never known anyone who drove a Big Healey, found E Types prohibitively old and expensive, never had to adjust the points and, if you can believe it, never had a Mini for a first car.
Buyers from this generation will start (and have started) to drive prices of so called ‘modern’ classics.
As the industry, the buyers and the dealers age, a new crop of younger owners reach financial maturity. Porsche 996 GT3 or Ford Cosworth, anyone? By all of the usual benchmarks, these cars are mere teenagers, yet in terms of collectability, investability and desirability, they’re snapping at the E Type’s heels whilst arguably offering a whole lot more in terms of real world drivability.
As ‘modern classics’ begin to lose the ‘modern’ and achieve full blown ‘classic’ status we can all say hello to the new dawn of the classic car world.
New, younger buyers enter the market and bring new, younger classics with them.
Not eroding the industry by any stretch, but bolstering it.
You see, we promised it wasn’t all doom and gloom.
Next Blog Post:
Written by Mark Tofts and Joe Briley