FINANCE ENQUIRY

The classic car market – October 2015

By CSF Team | Classic car Market and Values | 0 Comments

Hagerty’s US market rating declined this month for the reasons they give below:


Although it still shows that the market is expanding, the Hagerty Market Rating experienced its biggest month-to-month drop since July 2013, and its fifth consecutive monthly decline.

Expert Sentiment slipped 3 points from last month, as market observers continued to describe price changes that were smaller than the ones witnessed earlier this year.

Thanks to a rebounding stock market, Correlated Instruments jumped by 2.66 points to become the most optimistic input for the Hagerty Market Rating.

A strong volume of cars offered and sold at auction resulted in a modest increase in Auction Activity.
On the other hand, transactions among private parties—including average sale prices achieved—had its biggest fall in more than two years.

After 17 consecutive monthly increases, activity among Broad Market Insured Values declined slightly. The ratio of high-end cars increasing versus decreasing their insured values dropped as well.

September’s reported rating was revised to 71.21 from 71.20 due to newly released inflation numbers.


 

Market-Rating-Graph-October 2015

The HAGI Index reported increases in their TOP 50 Index of around 5.6% in September to reach an all-time high. Year on year growth is 17.8% . Their Ferrari (HAGI F) index increased by 5.3% due to the influence of sales of RHD models (YOY + 21%) and the Porsche (HAGI P) index saw a correction of 6.61% with year on year growth of 8.49%. The HAGI MBCI (Mercedes-Benz) index went up by 6.1% following weak August sales and 12 month growth of 13.49% – which represents a very steady growth curve.

The K500 market average index stands at 475.2 from an opening position on 1 December 2014 of 449.9 – a slight rise from last month  but a static market overall.

 

The Classic & Sports Index 

Our index is based on invoice prices, enquiries and customer sentiment.

Speculator activity in the market is reducing while experienced buyers are coming back into the market looking for “bargains”. Enquiry levels for finance have seen an increase over the last 8 weeks and represent good opportunities to do business. Dealers are reporting increased enquiry levels and buyers expect to be able to negotiate. The best cars are still selling for good prices – LHD cars and those with less than great provenance will languish in showrooms unless prices are reduced from the current high levels being asked by many vendors. Correctly priced cars from marque specialists remain sought after.

 

Outlook – changeable. Sellers market turning to a buyers market.

Many thanks are due to Hagerty UK for their support and cooperation in allowing us to share their data. We hope to extend this direct sharing of information to the other indices in the very near future.

 

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