For all the car owners out there, maintaining or raising your car’s value is a dream come true for most. But what if we told you that you can double your car’s value in just under 12 months? In recent years, a surprisingly huge group of investors are raising their stakes in the classic car industry. The unprecedented 467% increase in the value of classic cars within the past decade is characterized by record-breaking sale numbers together with key dealership acquisitions in the market. One key trendsetter in this phenomenon is Champ Private Equity. They’ve recently bought Dutton Garage in Melbourne and are currently intending to buy the Classic Throttle Shop in North Sydney — both being highly reputable classic car retailers in the game.
With this newfound momentum within the market, new records have been broken with a 1967 Ford Falcon (GT-HO Phase III) recently being valued at more than $1 million. This is a stark increase from its original retail price of $300,000 just two years prior. Funny enough, the price of many other muscle cars such as the Holden Torana A9Xs is now seated comfortably over $300,000 too. Nonetheless, it’s important to note that the Australian muscle car industry isn’t as robust as the European classics. Australia’s 25 million consumer market is measly when compared to Europe’s consumer market worldwide with consistent yearly value increases. An example of this difference is evident in how the Ford Falcon GT-HO Phase III has exceptional control and functionality in design despite only a few knowing of its reputation beyond Australia. Conversely, it’s common knowledge in the US and Europe that in early 2019, the Ferrari 250 GTO was sold for $70 million while the Aston Martin DB4 GT Zagato (2 VEV) easily hit $18.8 million.
While impressive, these numbers teach us that the key to good value predictions is to observe past trends from as far back as one year ago. For instance, Japanese classic and modern classic cars have been dominating the market trends unimpeded for the past year and this will carry on for future worthy competitors. Take the Nissan Skyline GT-R R34 V-Spec II for instance — in 2018, it retailed for an average of $200,000 with current sales fluctuating between $230,000 and $250,000.
Despite its low mileage, the Toyota Supra twin turbos (JZA80) have been managing greatly with two being sold for $150,000. In 2016 and 2017, they only retailed between $28,000 and $34,000.
Meanwhile, the Porsche 930 Turbos have been steadily increasing their ranks in the market as manifested by a red Cabriolet RUF-bodied reeling in $695,000. Previously, its price was only $340,700. Simultaneously, the Porsche 911 SCs have plateaued in cost as anticipated.
Similarly, the Ferrari 308 GTBs have stagnated after an intense tripling of value previously. This can be accrued to its weaker operational function in contrast to its fellow competitors like the Lotus Esprit. This model is far superior because of its amazing functionality like steering, braking, horsepower, and overall cohesive driving experience. Demographic factors (like age groups) of market consumers also have impacts on the success of car sales.
With that being said, even though the growing classic car market is commendable, the Japanese modern classics should not be underestimated despite not being the conventional crowd favorite with Westerners. Models like the Datsun 240Z and Nissan GT-R have recently been garnering substantial interest.
Evidently in the world of car dealerships, field expertise is a necessity. Only those who have dealt with them in terms of engineering, trading and driving them are worthy of being called car experts. As prices of such cars continue to increase exponentially, meticulousness is a prized and valuable quality to possess. The beauty of car dealerships that other kinds of property markets lack is the moment a car jumps in price in a particular market, the next course of action would be to simply shift the car model over there and capitalize on the market rates.
Currently, in the UK, the car dealership climate is flourishing; from major newsprints and monthly magazines to television broadcasts and websites like carandclassic.co.uk, you can’t deny that this market enjoys decent media coverage. Additionally, UK hosts as many as 47 classic car shows with an average of 1,600 cars in each exhibition yearly. Australia will follow suit with all these things shortly. Lloyds, a newly-emergent auction house, is paving the way for this.
The next generation
So what’s next, you might ask. There are many new car models that are making waves through the market right now; for example, the Mitsubishi 3000GT is a great contestant to keep a lookout for. In early 2017, 17 of them averaged out at $8,298. However today, they average out at $17,382 instead which is more than a twofold increase. As a consequence of being a limited edition and possessing excellent specifications, these cars are projected to rise astronomically to $40,000. They will go on to be Japan’s pride and joy.
Another classic model on the market is the 1970-75 Range Rover Classic two-door. Its growth in numbers is astounding but this also suggests that good quality ones are hard to come by. Originally in early 2017, there were nine for sale but currently, there are only four left on the market. Furthermore, before 2017, it retailed for less than $5,000 and now, it can easily cost up to $100,000 in Australia and $300,000 in Europe if we’re looking at a Jaguar Land Rover (JLR) fully restored Suffix A (1970-71) 355 chassis number vehicle.
When pertaining to the technicalities of car dealerships, there are so many areas to consider to determine the composition of a good classic car. From its country of origin to its internal components, a lot goes into designing a respectable vehicle. The Australian-imported 356 chassis number Range Rover Classic two-door alone is worth 60% of its UK-imported 355 chassis number counterpart.
As with all cars, regardless of whether they are a classic or not, they cost a bomb when it comes to purchasing and servicing them. Thus, car owners should never underestimate the importance of good car insurance in protecting their car and themselves from harm. It's important to protect your car from unfortunate events that might occur. Check out Youi car insurance who is known for providing coverage that matters.