The downside - not all classic cars increase in value
04/03/2015
Currently, people like to talk about the impressive increases in value that make classic cars look like a better investment than most shares or alternative investments. When looking at the increase in value of an Aston Martin DB4, a Lamborghini Miura or a BMW 507, it is often forgotten that there are many old cars that either stagnate in value or even lose value from year to year.
The special edition of "Oldtimer Markt Preise", which is currently available at newsstands, allows anyone interested to investigate this phenomenon, as the current prices for each of the cars documented on over 300 pages for condition grades 1 to 5 as well as the value gains or losses in the period from 2009 to 2014 are listed.
When reading the booklet, one quickly realizes that the value development of pre-war vehicles in particular is often only slightly in favor of the owner. Vehicles that have neither sporty performance nor a particularly attractive appearance are the most affected. The poor performance of the Auburn, Cord and Rolls-Royce brands is also particularly striking, with a particularly large number of models in their ranks showing a significant loss in value.
But the phenomenon is not specific to the pre-war period. Youngtimer vehicles in particular, for which the great demand has not yet set in, are also falling in value in some cases. For example, most Alfa Romeo 164 variants have lost between 5% and 43% of their value over five years. But popular German vehicles such as the first-generation Audi convertibles, which all saw double-digit losses between 2009 and 2014, have also been hit. In the BMW camp, some models from the E34 series have been hit with red percentage figures. Even the supposedly stable cars with the little horse on the hood are not immune to falling market prices. The Ferrari 348 and Mondial did not ensure rising asset values. The Mercedes W124 series and the Silver Shadow and Silver Spur variants from Rolls-Royce have also seen prices fall almost across the board.
But even supposedly established classics are subject to price corrections.
For example, the Austin Healey 3000 and the Sprite (with the exception of the Frogeye) have suffered significant falls in value in some cases. The Borgward Isabella also seems to have lost favor with buyers in all models. And even the rear fin in the form of the Mercedes 220 b, 220 Sb or 220 SEb fell in value. The cars from the British company MG, which are actually very popular, were badly hit, with models from the T-series, A-series, Midget series and B-series achieving lower prices in 2014 than in 2009.
The list could go on and on, and of course every single value can be discussed. The work of Classic Data's market appraisers is extremely difficult, especially when only a few examples of a type are traded each year.
Every car has its own history, conditions cannot always be traced perfectly, and vehicles traded at auction are subject to their own dynamics. So among the many thousands of listings, there are bound to be some that do not quite correspond to the actual market level. If, for example, someone wanted to offer me a Lotus Esprit S2 2.2 with left-hand drive and in honest condition 2 for 23,500 euros, I would immediately go for it.
It should also be clear to the reader that the price development of the last five years is hardly indicative of future value development; it is more useful for considering what one should have bought than for thinking about what one should buy today.
And anyway, we classic car enthusiasts don't buy our cars with a view to future gains in value, but for the joy of it.
But because analyzing price trends has its appeal, we at Zwischengas have also expanded our " vehicle valuation " a little. From now on, we will also show the average annual value development over the last four years for each price situation for a vehicle.
Unlike Oldtimer Markt, we do not compare condition 3, but a weighted average of all saved conditions with an emphasis on the values for condition 2 and 3. Premium readers can even see the value development as a curve.
So it's worth taking a look at our vehicle valuations ( in the menu under "Market")!
