End-of-Year Report – December 2017
Despite strong growth in some pockets of the collector car market, there was a slight contraction towards the latter part of 2017 before a return to their previous levels, giving us an overall picture of stagnation. However, the collector car market seems to have a spring in its step in the new year and is following the positive trends seen in the wider financial markets at the time of writing.
Affordable classics continue to outperform other segments, improving average market data on the whole. Dips across the more traditional classic car indices floated back to their previous highs at the end of the fourth quarter, providing confidence that had been lacking in auction house clearance rates.
The widely publicised yellow McLaren F1 with delivery mileage sold after only a week on the market, with reports that the car may have found its US$27m asking price.
Jaguars and Aston Martins are beginning to emerge for their time in the sun. Strong auction results have meant the market is seeing plenty of activity in this space, and rightfully so. For far too long these British marques have underperformed their Italian counterparts. Not such a problem for the McLaren F1 however, with a record price breaking through the US$15m mark. The widely publicised yellow McLaren F1 with delivery mileage sold after only a week on the market, with reports that the car may have found its US$27m asking price.
Locally, values for Australian collector cars continue to perform erratically on the whole. XY and XW Falcon GTs have seen hammer prices well above AUD$200,000 at Shannons, while other GT Falcons of the same era are selling for $100,000 less. Mid-way through 2017 we reported on an HSV VS GTS-R that broke records at $127,000 with Lloyds. Unfortunately for the owner, build no. 73 saw a result of only $85,000 at Shannons in late November, failing to reach estimates. Whereas only a couple of weeks earlier, Shannons had found a result of $52,500 for an HSV VN SV5000.
More desirable BMW and Mercedes-Benz models look to be less volatile at Australian auctions, with investors bringing stronger support to this area of the market than previously seen. European vehicles on the whole though are not yet being led by auction results, as is sometimes the case.
Privately, sales appear to be building solid foundations across all areas. Speculators are still asking absurd prices for mediocre vehicles, but overall we’re seeing less resistance to prices that mirror those found overseas.
For our analysis on these market trends and what they mean for you, be sure to join as a member of Harris & Silverman, where we’ll explore which models to buy, sell, and hold.
