Classic Car investment at Bonhams Auctions
If you are looking for a good investment this year then why not try investing in a classic car. Now you may think a car an investment how can that be? Your experience may be that you are used to buying a new car and see it depreciate in value from the minute you drive it out of the car showroom. But I’m talking about Classic cars here.
Indeed Classic cars have seen soaring sales and have quickly become an asset over the last few years with investors turning from buying property due to a decline in property prices. Those who have made investments on classic cars such as Ferraris and Mercedes have see an almost 500% return in 10 years. Due to this the big car auctions such as Bonhams Auctions have seen an increase in sales with far busy auctions. This is very healthy for the industry because as any avid auction going will tell you the more interest you have in a particular car then the more is goes for.
A classic car at Bonhams Auctions
When we think about a classic car then it isn’t always easy to get a clear definition of what make a car a classic car. Although the definition varies globally, if your go to Bonhams Auctions you will find that it is generally a vehicle which has a wealth of history enough to make it collectable and worth keeping. In many circles it is a definition which is kept for vehicles which were made before 1973.
When it comes to the top money makers a good investment is a 1950s to 1960s Ferrari or Jaguar are always wanted and in demand so resale profit is almost guaranteed. However don’t think the car has to be that old either as 1980s vehicles have recently seen a rise in the market place with a BMW M3 recently being sold for £30,000 and ten years ago that could be purchased for just £10,000. This is not an isolated sale either as Bonhams Auctions report that they have seen Ford Sierra Cosworth sold for just under £100,000.
The increase in these newer more modern cars holding their price and even becoming an asset had brought in a new market place. Namely, the modern classic car market. This as been great for the industry as it has opened the door and made it easier to get into the hobby of classic motor cars.
Top Tips for buying at Coys Auctions
Buying a car at auction has become very popular over the last few years. Researchers are saying that over 50,000 vehicles are sold every month through a car auction like Coys Auctions. Ten per cent of these sales are from private buyers not sales garages. So I thought an article relating to some top tips for buying at auction may be a well welcomed topic. if you are thinking of buying at auction then you need to read this and find out the pros and cons and what to do and not to do.
There are lots of different types of auctions from the classic car auctions to ex-fleet car auctions, mobility auctions and even ex-services auctions and if you do your research well then there are definitely some bargains to pick up. Beware though it is not for the faint hearted as the speed of sale in a car auction is unbelievable and if you turn your head you will miss the sale it is that quick. So you need to make sure you are totally up on the vehicle you are considering and have a set budget.
How to buy at Coys Auctions
First big tip is to check out the catalogues which are distributed at the auction as there will always be a true description of the car with all the history outlined. This will help you get a feel for the prices vehicles are being sold for. It may be a good idea to look online to compare prices from other sources like garages. This will help you to settle on a figure that you are willing to give for the vehicle.
Always check out the vehicle on the day there is usually a slot before the auction which allows you to do this. Do some simple checks of bodywork, trims, upholstery, then check out the ending and all the electrics. If it has electric windows check they work and any central locking systems.
It is very important to listen to what the auctioneer is saying about the vehicle you are bidding on as this is legally binding and it will ensure that you don’t have any unexpected problems later. That’s it really it is so straight forward but one thing I would definitely recommend is go to a few Coys Auctions before making any purchases so that you can get the run of it.
Specialist Car Finance for restoration jobs
I recently bought an vintage Humber 12/25 all weather tourer which was a bargain but obvious needed a bit of TLC and restoration work done on it. So have paid out a sizeable amount on the car I was then looking into getting a loan to help me do the restorations and I was really surprised that there were not many companies out there that offered a deal for specialist car finance just for restoration. I could have easily got a loan for the purchase of the car but not for the restoration. Now I’m thinking that is really bad as there must be other out there who have an old classic and want to do it up. Hence I’m writing the article to show you what I’ve found out.
If you look carefully there are just a few companies out there who understand the enthusiasts dilemma and provide just the right deal depending on the type of car you are restoring.
Restorative deals with Specialist Car Finance
The best deal I found for Specialist Car Finance was called a Restoration Equity Loan which was great because it provided money for any restoration or customisation work required but also allowed me to keep possession of the vehicle. The amount I could borrow was set to the vehicle and considered the current market value of the car in the current condition and then the project market of the vehicle after the work was completed. However the loans were quite generous and ranged from £10,000 to £50,000.
All payments had to be monthly payments and the time length was up to 36 months. They even offered to transfer the money directly to my restorer so that work could begin immediately and this could be done in either one payment or a series of partial payments.
The flexibility was even great as I have the opportunity to pay the loan off sooner and even make a lump sump payment. However there was a small prepayment penalty if I paid the entire loan off too early. Interest rates did vary with the type of vehicle however they were generally very competitive.