WHY YOU SHOULD MAJOR ON THE MINOR

The growth of the classic car market has seen more and more private buyers prowling the auctions, often driving prices beyond what dealers need to pay in order to leave some profit for resale. But even in this heated environment some cars, particularly lower value models, can be overlooked by the auction hunter.

In his Market Watch section of the latest issue of Classic Cars magazine Russ Smith tips the Morris Minor saloon as an opportunity for a canny buy. While pricier Convertibles and Travellers tend to go for strong money, the regular saloons are often overlooked, with 64 per cent of cars offered over the past year selling for an average of 12 per cent below estimate.

Buying advice and market analysis is part of 16 pages of buying information in every issue of Classic Cars magazine, including Quentin Willson’s Smart Buys, Russ Smith’s Market Watch, in-depth buying guides and Ads on Test.

SOME OF THE PITFALLS OF BECOMING A CLASSIC CAR DEALER.

< All Blogs

About 5 years ago at the humble age of 22 I had decided that the rat race had become too much for me. I had not only the pressure of working a full 8 hours each day, but the added pressure of having to head down to the pub every now and then combined with having to wash and iron my own clothes. Times were tough and I realised I needed to duck away from all this responsibility. I needed to get rich quickly to get out of this murky world of real work and my first plan, of buying lots of lottery tickets, had failed woefully. The next issue that came up was that I had no discernable talents. This meant that I couldn’t be a pop star or an actor. I suppose I could have applied for The Apprentice but Amstrads bore me at the best of times so that seemed a poor idea. Fortunately because I hadn’t had many girlfriends/friends growing up, I knew a surprising amount about classic cars, even if I had no idea how to repair them. Armed with £4000 to set myself up I decided to start a ‘classic car business’. I had quit work, was sleeping back at my parents and was living on a diet of Coco Pops and Pot Noodles. However none of this mattered as I was about to make millions in the classic car business. I had read an article about how this guy had bought something on E-bay for £5 and then by trading up ended up with a house. I had £4000 so I was pretty certain I was going to end up owning Bill Gates. I decided to start with something I knew very well which was obviously a Mini. For £3000 I bought a Mini Cooper Sportspack with only 12,000 miles on the clock which needed a ‘small’ amount of cosmetic work, which I reckoned would cost about £500. Then with the right marketing I’d sell it for £6k meaning I’d be able to buy a much better second car. Unfortunately I have a tendency of getting too excited and of using my rose tinted goggles a little too often. I had failed to notice the following: - Hole in the boot floor which had tape over it. - Service history virtually missing for 3 years and an MOT that said 48,000 miles. - Front sub-frame that had been put on at an angle. I had to visit the bank of Dad for the £2,000 it eventually cost to get the car properly sorted. I sold the car for £4,000 in the end after 3 months trying, losing £1000 and countless man hours trying to sell it. Shortly after this I re-entered the world of work and since then I have not even attempted to buy or sell a classic car with the intention of making a profit. There is a big difference between being able to geek out the stats on a series 1 E-type and knowing enough about that model to spot a dud when looking to buy one. In addition you also need to be able to appreciate the cars without getting too emotionally attached to them which I’ve never proven capable of doing. There are two reasons why I have decided to relay yet another dull anecdote from my rather tedious existence this week. Firstly I got an e-mail from someone wanting to know whether I thought he should set up on his own as a classic car dealer. In all honesty unless you have some mechanical skills, have a lot of knowledge about the cars you want to sell, can be pragmatic when required and have a good level of financial support don’t even think about it. I know the odd back-yard mechanics that supplement their income, by doing up a car then selling it on, but not very many who can do this full time and make money out of it. Operating profits are small and competition to buy good stock is vast. Without a reputation it is a very difficult market to break. My second reason for bringing this up this week was an e-mail I had from some chap moaning that all classic car dealers are pr*cks and they would sell their soul for a pack of peanut M&Ms (He didn’t actually say the peanut M&M thing but I thought it helped set the scene). I can say quite comfortably in the last 2 years I have spoken to at least 1,000 different classic car dealers from all over the world. Of those 1,000, I can remember only 7 that I really didn’t like. That is less than 1% of classic car dealers I don’t like. And let’s be honest, if you’ve read my weekly updates before, you’ll know there aren’t many people I do like. Compare this statistic with recruitment consultants where research* shows 98% contain no human soul and estate agents who don’t eat food because they can survive on pure ego. Classic car dealers do it because they are passionate about classic cars. They are usually highly intelligent people with many other interests who actually have opinions about things. Most take pride in what they do and the cars they sell and they love to chat about it. Honestly, if you want to get the price down on a classic car you want to buy from a dealer. Try to out-chat one, I don’t fancy your chances. This brings me to the moral of today’s story. Selling classic cars is actually quite hard and unless you’re doing so with very high end vehicles it is not vastly profitable. Classic car dealers get some flak and I’ve seen things in the press with court cases where classic car dealers have been involved and usually the plaintiff looks like the wronged party. For legal reasons I would never comment on an individual case but there have been times where you can see the dealer being sued didn’t realise the mistake himself or was just a passionate old chap putting his car in the best possible light. The loss of reputation to any car dealer after something like this is hugely damaging. So next time you think about pigeon holing classic dealers alongside normal car dealers, remember; these people keep the classic car sector ticking and usually do it because of passion rather than money. Phil Cooper philcooper@classiccarsforsale.co.uk * For legal reason I have to point out that I haven’t actually done any research into whether recruitment consultants actually have a soul. It does seem doubtful however

GET YOUR CLASSIC CAR READY FOR SPRING

< All Blogs

Get your car ready for the Spring season with our simple, 12-step guide...

So you’re a diligent classic owner. You cherish your car, which is why you don’t drive it through the filth of winter. But when it comes to getting it out and ready for a reliable show season, is your inspection regime all it could be?

To help you get your car back on the road and running smoothly, we’ve put together this checklist of items, so you can ensure your classic will be reliable, safe and on the button for the perfect start to the classic season. There’s no time like the present to make your preparations to enjoy the summer.

TYRES

Examine your tyres minutely by removing each wheel from the car and inspecting for tread depth and minute cracks in the sidewall and tread areas. Ensure you examine the bead seat on the inner and outer faces too for deterioration. Remove the valve caps and set the pressures exactly.

BRAKES

HYDRAULICS

Brake fluid should be checked with a hygroscopicity meter, or, if the fluid is black, or hasn’t been changed in the past two years, replace it.

FRICTION

Remove wheels and look for deterioration in flexis and corrosion in metal pipes. Examine friction on pads and shoes. 1.5mm is legal minimum.

COOLING SYSTEM

Check coolant level in expansion bottles and radiator header tank. Antifreeze should be to strength — you can buy a tester for this — then adjust to suit. Examine all hoses for cracks and then check the expansion hole under the water pump. It should have no trace of residue or leakage.

OIL AND FILTER

Check engine oil level using the dipstick and adjust as necessary. Then remove the spark plugs to spin the engine on the starter without any load to get the oil pressure up quickly before you attempt to start the engine. Change the oil and filter for the new season after running the engine to temperature.

FUEL

If you’ve left the tank empty then replenish the fuel with fresh and add your favoured lead replacement additive if your car isn’t converted to run on unleaded. Leaving fuel in the car over the winter can result in a thickening, while ethanol-based fuels can result in corrosion.

WIPERS

With wiper arms removed, drip some oil onto pivot points where they protrude through the body then operate the wipers on fast to work the lubricant in. Oil the links on wiper gearboxes too, then replace the blades as a matter of course. If you’ve used a plastic wrap under the wiper in storage, remove it.

LIGHTS

With an assistant, check all the lights work in accordance with the car’s design. If lamps are dirty inside then remove them and wash/polish lenses. Replace any bulbs that have gone black inside, and also clean the inside of headlamp fairings on cars such as E-types to maximise light output.

SEAT BELTS

Check anchorages by giving a real good pull on belts at floor and B-pillar mounts, then check centre mount the same before plugging in and making sure the seat belt catches are working adequately and not releasing prematurely. If you have inertias, check for the mechanism locking too.

BATTERY

Remove the battery and give it a slow trickle charge to top it right up. Put it on a bench and remove the electrolyte covers and top up with distilled water if necessary. Connect both leads and only then switch the charger on. Don’t place the battery on a concrete floor, as this can damage the plates.

EXHAUST SYSTEM

From underneath the car, examine the exhaust pipes and silencer boxes for corrosion and deterioration, then check each of the rubber hangers (mounts) for cracks and splits — a broken mount can finish off a good exhaust system in short time. Replace any poor components.

PAPERWORK

Ensure you have your up-to-date paperwork in order. Remember, if you need to take your car to an MoT station it must be insured, and the MoT garage must have a record of its appointment for you to drive it legally to the MoT garage, and you mustn’t ‘pop in’ anywhere else on the way.

CLEANING

A real good spring clean is now in order. Wash with shampoo and leather off. Vacuum and clean the interior. Then use a gentle clay bar on the paintwork, wax polish, buff off, chrome polish and/or trim gel, to achieve your personal level of appropriate cleanliness for your cherished car.

CLASSIC CAR PRICES TO FALL

< All Blogs

Classic experts are predicting a 'slow puncture' for the classic car market as years of rising prices come to an end - but they don't expect a repeat of the late 1980s crash.

Justin Banks, who runs the eponymous classis dealership in Kent, does not believe the market is heading for a crash but he does see price growth coming to an end.

'For the next few months I expect prices to remain exactly where they were last month - we cannot push the market. I think the market will be stable but will not grow at the rate we have experienced over the next year.

'The people declaring an imminent bust are usually those who want to buy a Dino but missed the boat a couple of years ago! The underlying market forces bear no resemblance at all to the crash of the late 1980s.'

Mark Wilkinson, managing partner of Heritage Classic Car Insurance, said that while he could see certain upwards trends continuing - particularly the price rises for 1980s and 1990s models - he believes the overall market will suffer a 'slow puncture' rather than a price crash. He said: 'Coupled with relaxation of the pension regulations and a lack of capital gains tax on cars, it's tempting to think that current growth will continue. However, there are signs of an imminent downturn. Expected increases in interest rates will make non-yielding assets such as classic cars less attractive to investors.'

Wilkinson added that volatility in global markets, including the current situation in China, could lead to falling values. 'Closer to home, recent large-scale sales by high profile collectors could signal a likely downturn,' he said. 'Equally, a scandal involving a supposedly old vehicle sold as original, which turned out to be a high quality replica, could also see prices for certain vehicles plummet - rather like the current Volkswagen diesel situation.

'However, if the global recovery takes a hit, then all bets are off, and it's a case of battening down the hatches and hanging on tight for the long run!'

Keith Riddington, who runs Buckinghamshire-based specialist Classicmobilia, said the number of Ferraris struggling to sell at auction was a sign of a market that is levelling out. He told Classic Car Weekly: 'The state of the market has changed in the last two months. Buyers are taking a different view on acquisitions, and dealers are having to work a lot harder to compete against the many auction houses, then having to justify the car they are selling against the value of an auction car recently sold.'

Riddington's tip for growth is in modern classics. 'I see the 1980s, 1990s and 2000 cars moving so much in the last few months,' he said. 'There's new money on the horizon, and many younger cars are being bought and locked away. Pre-World War II cars are being left behind and the market that did well at the start of the year is stabilising I do not see so much of a downturn, so much as more sensible buying by people with a little bargaining power.'

PRICES ON THE UP – AND DOWN

< All Blogs

More than a quarter of classic cars have changed in value over the past three months, according to the prices update in the latest issue of Classic Cars magazine.

The Price Guide quarterly reveals 331 movers out of the 1200 models tracked, with 267 of them increasing since the last update. Growth is spread right across the market, from Austin 1100/1300 to Ferrari 250 GT Short Wheelbase, but inevitably there’s a lot of action around Ferrari models – not all of it upwards. While many of the traditionally coveted Sixties models have increased again, some of the more recent growth models like the 330 GT, Dino and 308 have fallen back.

At the more affordable end of the market, MGBs are showing signs of awakening after being left behind by other, more rapidly growing classics.

It’s a complex picture, proving that just because a model is on the up, it won’t necessarily continue the climb; and that just because other models are languishing, that doesn’t mean that they will remain affordable for ever.

Buying advice and market analysis is part of 16 pages of buying information in every issue of Classic Cars magazine, including Quentin Willson’s Smart Buys, Russ Smith’s Market Watch, in-depth buying guides and Ads on Test.

For more details of the latest issue, visit www.classiccarsmagazine.co.uk

WHAT'S ON THE RISE AND WHAT'S ON THE SLIDE IN CLASSIC CARS' PRICE GUIDE

< All Blogs

It’s been a busy few months for price movement in the classic car world. The Price Guide Quarterly in the latest issue of Classic Cars magazine reveals 271 climbers and 25 fallers out of the 1200-plus models that we track.

What's on the rise and what's on the slide in Classic Cars' Price Guide

Most of the models on the up carry Aston Martin, Ferrari, Jaguar and Mercedes badges, as you might expect, but Fifties Ford Consuls, Zephyrs and Zodiacs have perked up this time and Mini Coopers have shown another surge.

That news will either have you rushing to buy in before those cars become even more expensive, or depressed that they’re already out of reach. In that case, the fallers represent an opportunity, with choices ranging from the Alvis Speed 25 Tourer to modern classics like the Porsche Boxster slipping back. A Speed 25 saloon will have to fall a lot further before it’s within my grasp, but I can be patient when I need to be.

Buying advice and market analysis is part of 16 pages of buying information in every issue of Classic Cars magazine, including Quentin Willson’s Smart Buys, Russ Smith’s Market Watch, in-depth buying guides and Ads on Test.

For more details of the latest issue, visit www.classiccarsmagazine.co.uk

PRICE RISES SPOILING INTEREST IN CLASSIC CARS

< All Blogs

FIVA boss warns more must be done to promote historic vehicles to entry level enthusiasts

The increased values of models like the Ford Capri MkIII is great news for classic car traders and specialists, but not everyone is convinced higher prices are a good thing.

The rising prices of classic cars is making it difficult to maintain the perception that enjoying them is a popular hobby, the head of global organisation representing the historic vehicle movement has said.

Patrick Rollet, president of the Féderation Internationale des Vehicules Anciens (FIVA) said that while he was pleased that the market for classic vehicles was performing strongly, the increased values was making it more difficult for some enthusiasts to get involved with the movement.

He said: ‘While it is good that the market is strong, the rising prices of some of the vehicles we cherish makes it increasingly difficult for us to say our hobby is a popular one.’

Among the models which have increased significantly in value over the past four years are the Triumph TR5, Sunbeam Tiger and the 3.0-litre versions of the Ford Capri, putting them out of reach of a portion of the classic movement who would have been able to afford them at the lower prices of five years ago.

The FBHVC said the price rise phenomenon affected the higher end of the classic car market more acutely, and that its member clubs hadn’t raised any concerns about value increases putting off new recruits to the classic car movement.

Geoff Lancaster, communications director, said: ‘Like any popular pastime, like football or golf, once a hobby gets more and more popular some of the prices associated with it will inevitably start to go up.

‘However, there is always a new influx of cars being recognised as classics which are at available at a much more affordable price point, and we completely support these cars being enjoyed as future classics.’

Lou Lusardi, press officer for the Sunbeam Tiger Owners Club, said: ‘I don’t think it’s a phenomenon that affects all classics, but it’s definitely been the case with the Tiger. Prices have risen to the point that you’ll struggle these days to get a good car for less than £30,000, which does affect the ability to buy the cars.

‘We have had an influx of younger members after the publicity the car’s 50th anniversary at the NEC show last November gave us, but even now we don’t have many owners under the age of 40.’