According to new data revealed by Coutts Bank, it’s been reported the value of classic cars has dropped by 10.4% in the past year. Since 2005, classic cars have steadily risen in value, only for the drop to occur recently.
Co-founder of the Car and Classics website, Phil Warner has said this was because of a skills shortage. “Prices have tumbled and that is in part due to the dire shortage of skilled mechanics. The value of classic cars is dropping for the first time in more than a decade, because there aren’t enough old-fashioned mechanics to fix them.”
Warner went on to highlight the generation gap, feeling that modern mechanics are taught to rely on computer diagnostics. “The old grease-monkey is a dying breed of mechanic. My generation was able to use a manual to strip down a car and put it back together again. I seriously doubt the future of classic cars as we know them. At best we might see a more reliable modern engine powering a classic chassis.”
The models that have been most affected include Aston Martin, Jaguar, Ferrari and Porsche. Prices had risen more than 332% in the last ten years, only for the value to drop. David Mutch, owner of Clydesdale Classic Car Restorations pointed out that it was hard to find mechanics that could keep up with the demand of owners wanting their cars fixed.
“Today’s mechanics are trained to work on cars as fast as possible. We work at a more meticulous pace. My own 1971 MGB Roadster is lying in a corner waiting to be fixed and I don’t know when we will get round to it.”
As the value of classic cars have fallen, the value of rare musical instruments and photography has soared. Brandi Estes, head of photography auctions at Sotheby’s said “it’s the nature of the work; it is the most democratic of art forms and because of the relatively accessible price points; it’s an attractive category for the growing middle market.”
With classic car values dropping, it brings up an interesting conversation on the future of classic vehicles. What do you think will happen?