Classic cars sales boosted by recession
Mar 2nd, 2009 by Steve Simmons
In an article by Telegraph in the UK it is reported that people are looking toward classic cars as investments during the current economic recession. This is an interesting turn of events, as historically we have seen prices drop during times of economic hardship. In the past, collector cars have typically been viewed as luxury items by most. It is possible that modern media outlets such as internet forums, televised car auctions and others have broadened the appeal of classic cars and shown how stable their values remain compared to traditional investment schemes. The following is a reprint of the Telegraph article, as found on this page.
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.”
To comment on this issue, visit the discussion thread in the forums.
The organizers of Cars & Coffee in Irvine have issued a statement addressing the problem of modern car groups hoarding the limited amount of display area in the PAG lot. Apparently this has been an issue for a while, but the final blow was when “NSX day” showed 100 cars, and then 75 Honda S2000′s crashed the gate, taking up most of what was left of the parking lot. They were asked to park elsewhere but reportedly ignored the gate workers, yelled insults and drove in anyway. After the show, the organizers sent out the following message:
Washington lawmakers are drafting a large economic stimulus package to help create jobs and rebuild infrastructure. They want to include a nationwide scrappage program which would give U.S. tax dollars to consumers who turn-in older cars to have them crushed, as a misguided attempt to spur new car sales. The lawmakers need to scrap this idea.
As is tradition with the Department of Motor Vehicles, each year we are presented with an assortment of new laws designed to simultaneously help and hinder our hobby. This year we are presented with more changes to the world-famous smog bill, which fortunately is still surviving in a way which leaves pre-1975 vehicles exempt. There will also be added restrictions on the use of cell phones while driving, namely text messaging.
