More
signs MGV8 prices are moving ahead
A
number of signs seen over the last few months suggest a further upward price movement
in classic cars is likely over the next 12 months and in some other areas too.
Some of the funds
that will be released under the new pension access rules are likely to go into
classic cars and lift demand and prices.
Contributors: Keith Belcher, David Heaton & Victor
Smith
Posted: 150220
|  | A
number of signs seen over the last few months suggest an upward price movement
in classic cars is likely over the next 12 months and in other areas too. We have
seen prices of good quality MGBGTV8s edging up over the last 12 months as typically
enthusiasts nearing retirement with funds available have felt the wafer thin interest
rates are derisory so forgoing meagre interest on a part of their funds to invest
in the enjoyment of owning and driving a classic car like an MGB or V8 is a relatively
painless decision! Well now there a more signs that this move from deposited funds
to fun assets could continue to drive prices ahead in the classic car market.
Here we highlight just a few of the signs: the likelihood of a
large release of funds from pension pots from April 2015 under the Government's
new pension access rules, Sotheby's re-entering the collector car market, the
frenzied activity at Anglia Car Auctions in January and the current 13 part classic
car series on Channel 5 which features classic cars at affordable prices with
predictions their prices are poised to rise. | New
pension access rules could see withdraws up to £6billion more than usual
from retirement pots
Keith Belcher has spotted the financial website, This
is Money.co.uk , is running an article on what they see will be a "massive
rush for cash in the first four months after new access rules that begin in April
2015". Meanwhile, a separate estimate from retirement specialist Saga suggests
an extra £1.5billion will be released in the first year for people to invest,
spend or give away as they see fit. The Channel 4 Dispatches programme presented
by Michael Buerk will look at the fallout from the pending pension reforms as
their research suggests that "almost almost half of over-55s said they intend
to take some or all of their money out of their pension - equivalent to 2 million
people taking advantage of the new pension reforms nationwide". Clearly some
of the funds "released" could be used to buy classic cars and with relatively
few good cars available on offer in the market the supply/demand balance could
be tight in the short term leading to price rises. thisismoney.co.uk
Sotheby’s
has re-entered the collector car market by acquiring a 25 per cent stake in RM
Auctions
Classic Cars for Sale auction analyst Richard Hudson-Evans reports
Sotheby’s has re-entered the collector car market by acquiring a 25 per cent
stake in RM Auctions, whose future sales will be re-branded RM Sotheby’s
with immediate effect. Sotheby's used to run car sales of their own, but closed
their Motor Cars Department in London’s West End some years ago as, indeed,
did rival fine art auctioneers Christie’s. Keith Belcher says "does
this indicate Sotheby's see a boom in the offing?" More
Anglia
Car Auctions very well attended sale in January saw MGBGTV8 prices move ahead
Our
report at the end of January 2015 focused
on the three V8s which had sold very well. Since then we see that the Tundra coloured
MGBGTV8 that sold for £17,010 has reappeared
for sale with a trader
in barely two weeks at an astonishing £22,500! Whether that optimistic
offer will find buyers anywhere near that price remains to be seen, but as prices
rise it seems quite possible a different group of buyers may begin appearing in
the marketplace who are not necessarily so worried about originality of MGBGTV8s
as a key part of price but are instead simply interested in an attractive and
comfortable classic car in good condition - in effect a less critical buyer in
terms of originality but nonetheless a buyer with financial means and an eye for
capital growth. So sadly we may see the passing of the years when the MGBGTV8
was an affordable classic with undiscovered qualities and appeal which real enthusiasts
enjoyed as a wave of new buyers arrives. Auction
report
Classic
car series on Channel 5
The initial signs are this programme has been well
received and is attracting good viewing figures as it is a well prepared and presented
programme by focusing on mouthwatering classics, barn finds, undiscovered good
value classics to buy now and other attractive items presented in an intelligent
and well informed manner by Quentin Willson and Jodie Kidd. Yesterday Episode
3 of 13 went out at 7pm and we hear that Episode 5 due to go out on Thursday 5th
March 2015 at 7pm will feature the MGBGTV8 along with the MGB and MGC as good
value classics. That exposure will inevitably highlight the V8 as an exceptional
car and very good value too. Channel 5
"Enjoy
a golden age of motoring" is the headline in a Daily Telegraph feature supplement
today on new pension rules
An extract from the piece written by Tim Gibson
will give you a flavour - "you can wait a long time to own your dream car.
For some people, the day never comes when they achieve motoring nirvana: a rare
state involving ownership of a vehicle of which you're proud rather than one that
is boringly fit for purpose". The article ends breezily "whatever car
you choose, now is the time to buy with your heart rather than your head. After
all, you've spent a lifetime earning your windfall, so the least you can do is
enjoy it in style".
Our advice to enthusiasts thinking of getting
a classic MG like a V8 is yes let your "heart" lead you to the idea
of getting the classic car you always wanted but then park your "heart"
and let your "head" do the research, initial telephone enquiries when
calling advertisers, making an inspection of a car and test driving it - and if
necessary get specialist help to inspect a car because you want to avoid buying
a Condition 2 car in need of hidden repair if you are paying a top Condition 1
price!
See our guide
to buying an MGV8 for information and support |
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