Collector Cars

The Financial Times has run another of their short "The Market" series, last week was on sporting guns, this week is on collecting vintage cars. Not all appraisers see collector cars, but it is always a plus to have a little knowledge of the subject and what experts believe will happen in the market. The FT market piece is short, but again, touches on the some or the important aspects of collecting cars with sections on what, need to know, top tips, pitfalls and forthcoming sales. As these market pieces are rather short, I have posted in its entirety.

What: Collector’s cars can be divided into several categories – veteran (built up to 1905); vintage (1905-30); post-vintage (1931-39); postwar (1945-59); and classic (post-1959). The last term is, however, often used to describe any older, collectable car. During the past decade, the collector’s car market has boomed as enthusiasts and investors have poured money into the category, with the result that the rarest and most sought-after models by marques, including Ferrari, Alfa Romeo and Mercedes-Benz, now regularly command seven-figure sums.

Need to know: Although the market has proved strong in recent years, experts do not believe it will suffer the “boom and bust” scenario of the late 1980s when speculators were paying unrealistically large sums for classic cars, often regardless of condition, originality or provenance. Buyers are now more discerning, and badly restored cars or those that have been rebuilt using incorrect parts and non-original components are unlikely to attract interest. In contrast, those that are in need of total restoration yet remain in complete, original condition can prove more valuable than fully operational examples of the same model because buyers are attracted by the fact that such cars have not been tampered with. In May, a 1964 Aston Martin DB5 that had been laid-up in a shed since 1976 fetched £282,000 against a pre-sale estimate of £50,000-£60,000 – despite the fact that a full restoration of the car to concours standard is likely to cost in excess of £250,000. 

Top tips: The leading classic car auction houses such as Bonhams, RM, H&H, Coys and Gooding & Co offer a convenient way of buying a classic car, although there are numerous vehicles available through specialist dealers and private sellers. Car brokers, who use their knowledge and contacts to find specific models on a client’s behalf, are also worth considering.

Pitfalls: Before buying, consider carefully how often you will use your classic. Old cars don’t take kindly to being left undriven for long periods of time and will deteriorate rapidly if not correctly stored. Cars that require extensive restoration will often end up costing more than they are worth, so try to buy an example that has been fully rebuilt to a high standard. Parts for especially rare models are usually difficult to obtain and often have to be made – invariably at considerable expense.

Forthcoming sales: This month’s Pebble Beach Concours in California will see a flurry of auction activity taking place on the Monterey peninsular. Houses staging sales include Bonhams (Quail Lodge, Carmel, August 18, www.bonhams.com); RM (Portola Hotel, Monterey, August 19-20, www.rmauctions.com) and Gooding & Co (official Pebble Beach auction, August 20-21, www.goodingco.com).

To visit the original financial Times article, click HERE.