Classic market ‘cautiously optimistic’
Funder of classic and collectable cars, Classic & Sports Finance, predicts that the outlook for the classic car market remains cautiously optimistic.
The business has engaged with a number of customers, dealers and suppliers to better understand how interest rates, exchange rates and free movement will affect the classic car market. The moves come in the wake of the UK’s decision leave the EU.
While economic uncertainty can limit demand for high value luxury items, some investors will see classic cars as a hedge against economic uncertainty. If interest rates are pushed lower, the classic car market could flourish as investors look for security in tangible assets. Economists expect any increase in interest rates to be negligible, ensuring that classic cars remain a worthwhile investment.
Despite an immediate negative reaction to the referendum result in the financial markets, the classic car market has remained steady. Dealers and auction houses have reported no knee-jerk reaction in sales, values or customer enquiry levels.
Robert Johnson, managing director at Classic & Sports Finance, said, ‘While there is still plenty of uncertainty about the future of the wider UK economy following the referendum result, the outlook for the classic car market is largely positive. Lower interest rates will drive investment in classic cars, while exchange rates will not affect the majority of UK buyers, and credit remains readily available. While there are concerns about the free movement of cars and people, it is too early to say whether restrictions will come into effect.’