Classic cars sales boosted by recession

[Nick Moss]

From the Telegraph today

Numbers of people interested in acquiring these old vehicles are increasing, according to insurance company Hagerty International.

It said there has been "robust trading" at classic car and collectors' auctions of late.

Hagerty's managing director Angus Forsyth said: "A well-sourced, classic and collector car can accrue in value rather than depreciate, as is profoundly the case with new cars.

"In the current climate, buying a classic car wisely can represent a good investment.

"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."

To those interested in exploring classic car ownership, Mr Hagerty said: "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."

[decapman]

If you have cash you are lucky to earn 1% on it now
If you have cash you worry whether to keep it in (weakening ) Sterling
Dodgy Euros or surprisingly robust Dollars.

I can see why buying a valuable asset like a LHD classic car gives you a variety of options, so you could hold it, enjoy it and eventually offload it at an auction in Europe or the US or the UK.

But cars should never be considered as an investment, buy them because you like them and enjoy them, capital appreciation is a welcome bonus.

Last time classic cars hit the stratosphere they crashed along with every other asset but about 18 months later.

A car costs money to keep and ultimately is an illiquid asset.
As ever though the very best hold their values longer and recover sooner.

I do see some parallels with the Art market here (not that I know anything about art) but it strikes me that impressionist paintings have held their values as have great examples of fine art. People want to own "old stuff". We all have too much new stuff, we dont need new TVs, or to replace our daily transport every three years, or another 10 polo shirts or whatever, but people seem to appreciate Old stuff that was made with care and precision and quality.

Modern art, (dare I mention Damian Hirst) made in a factory by minions without even the artists signature has bombed along with just about every other cheap mass produced item enjoying a puffed up market fuelled by easy credit and hype.

Peoples values are going to change with this recession, family and friendships are what count, not some silly scoring over who has the biggest house or the latest model Merc, but I fear for the transition from a
booming consumer driven society over supplied by estate agencies and shops dependant upon ever changing fashions to a slower pace.

Its a little like a seismic shock, those economic tectonic plates have been under strain for some time and now they have just lurched creating a massive disruption.The rapidity of the downchange is going to cause a lot of upset to peoples lives.

Oh dear, there I go, didnt mean to get that maudlin on a Monday morning......

[rafiki]

we dont need new TVs,

Oh dear, I'm just about to get rid of my 20 year old TV set. But I've still got my 32 year old Black and White one!

Still, the rest of your comments are extremely apposite.

[left4dead]

Mr Moss himself is looking for a new TV :

http://www.ddk-online.com/phpBB2/viewtopic.php?t=24017

And Red964 just bought THREE!!!

Maybe the recession means we're all staying in more and for that to happen maybe we all need to be watching our films, sport, etc. on a decent system

"I'll just buy this new 42" plasma and then I'll have no need to go out again - ever!"

[haasad]

Definetly a different outlook appearing. I sometimes restore the odd Boston Whaler boat ( something of a classic in its arena) usually just for my own pleasure. The latest, one an 89 Montauk with teak, is coming together in a shed on the South Coast , I am inundated with folk wanting something the same or their own boats similarily treated.

Previously they would have been replacing them with moderns...nearly everyone I have spoken to in that market is using words like classic, quality, soul, etc.

Nice to think that more classics of any nature may survive and the skills to allow them to do so may enjoy a higher appreciation in coming years for a wider audience.

Crikey ... bit deep for me

[butzsi]

I sometimes restore the odd Boston Whaler boat

I used to own a 1965 17' Boston Whaler (one of the earliest in the UK) and have many fond memories using it in and around Poole Harbour in 1994/5 , Quality !


Chris

[Nick Moss]

I used to own a 1965 17' Boston Whaler (one of the earliest in the UK) and have many fond memories using it in and around Poole Harbour in 1994/5 , Quality !

I used to own a 1947 Danish Trawler, converted for charter use, based in Poole from 1990 to 1992. I lived near Poole Quay at the time, lovely place!

[IanMcLeod]

Modern art, (dare I mention Damian Hirst) made in a factory by minions without even the artists signature has bombed

However a signed Hirst has been a very very good investment.

I think it's more about rarity and stuff you'll treasure than old vs modern. Which is good for classic 911 owners. Good cars will hold their value over time. At the end of the day they just don't make them anymore.

Ian.