With classic automobiles commanding high stature in the investment and insurance spheres, the Government feels it is high time that classic cars had stricter standards to adhere to, in order to attain optimum market bragging rights and lenient insurance premiums.
According to sources, simply the age of a classic car will not be the highlighting factor to acquire a commanding price for its sale. An investment expert has stated that such cars will be additionally gauged with respect to their beauty and rarity. Although the latter is understandable, the question of beauty appears to be subjective to say the least.
The director of HFM Columbus Wealth, Marcus Carlton, recently wrote an article in Investment Week, saying that collectibles and classic cars will always garner a massive market due to their age, which is healthily complemented by their beauty, power and uniqueness.
He also noted that while classic cars with the three aforementioned aspects do fit the bill as true vintage models, a documented history, such as racing lapels or old photographs of the car in action, would definitely bump up the desirability factor of the car in question. This would also help a standard classic car, which has a lot of the same models in the market, since it would give it an exotic USP.
Carlton also revealed that the earlier models from the 30’s and 40’s are drawing far less interest than the recent cars from the 1970s and 80’s.
“Cars seemed to be a generational aspiration, so perhaps now the values to watch will be for cars from the 1970s and 1980s, which were lusted over by boys and girls who are now coming into discretionary wealth,” Mr. Carlton explained.
In terms of classic car insurance, the same formula seems to apply. Those cars that are ‘hot’ at present, will seem to command privileged insurance premiums
Already, the classic cars are raking in handsome investment propositions owing to favourable tax breaks. However, the Telegraph reported that the Government was planning to tweak certain standing regulations by exempting the classic cars from taking the MoT Test. This would make classic cars an even more lucrative investment proposition, what with the convenience factor being heightened.
Mike Penning, UK’s Road Safety Minister was reported as saying that classic car owners are usually very careful about maintaining their vehicles in top shape. Therefore, certain standard guidelines were not required for them.
Moreover, taking into account the skyrocketing rates of land, property and fixtures, a classic car in the garage looks like a healthy investment since its prices are slated only to go up. This would also mean more preferable car insurance premiums and a minimal chance of rejection.