Classic, rare and cult vehicles have always been a popular purchase for enthusiasts and in recent years there’s been an increase in their value.
Did you know?
• Classic cars are not subject to any capital gains taxation
• Classic cars have become the number one investment in the world
• Values have increased nearly 400% in the last 10 years
Vehicle prices are increasing
• In late 2015, a 1973 Porsche Carrera RS 2.7 Touring sold in New York for just under $1 million (£678,500) – up until that point the most this particular model had sold for was £200,000.
• Last month at Bonham’s Auction in Monterey there were two record sales:
A McLaren F1 with 9600 miles sold for £15.62 million (which was a record for this vehicle).
An Aston Martin DBR1 became the most expensive British car in history, selling for £17.5million.
It’s not just classic cars cars that are great investments – 1980s and early 1990s cars are now also becoming popular. A great example is a Vauxhall Nova Sport which sold last month for £66,000. In the 1990s you couldn’t turn a corner without seeing a Vauxhall Nova, but with dwindling numbers left on our roads the values have increased dramatically.
With manufacturers now battling for economy, automation and a move away from conventional petrol engines, it’s no surprise that the classic car market has rocketed.
MOT and Road Tax
The Department for Transport has also recently announced that classic cars more than 40 years old will be exempt from MOT testing, with owners voluntarily electing for an MOT if they feel their car needs one.
Currently, only cars from before 1960 are exempt, which represents 197,000 cars on UK roads. The new rules will exempt a further 293,000 cars from MOTs.
The thinking behind the decision, according to the DfT, is that classic cars are “usually maintained in good condition and used on few occasions”. The decision eases concerns that garages may not be adequately testing cars over this age, as the modern MOT applies less to cars of this age. The new date also brings the age of cars exempt from MOTs in line with the exemption of road tax.
If you are thinking of investing in a classic or vintage car, or you already own one, you need insurance that is aimed at specialist vehicles. To find the right policy for you and to save you money, we take your exact needs and driving experience into consideration, tailoring an insurance policy to your precise requirements. Speak to one of our specialist teams today.
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Sources: Aviva Broker; Autocar