HOT HATCHES SET TO SOAR IN VALUE IN '15

Hot hatches set to soar in value in '15

Hot hatches set to soar in value in '15

Sister title Classic Car Weekly’s annual round of market predictions has highlighted some very interesting investment possibilities during 2015. The headline news is values of ‘80s cars – and hot hatchbacks in particular – will surge, according to classic dealers and auctioneers.
Karl Fasulo of Peterborough, Cambs-based KGF Classic Cars believes interest in this era – especially hot hatches – is rising. ‘Good, unmolested low-mileage cars will always be desirable, and those of the 1980s and ‘90s show a lot of promise. So we’re looking at the Ford Escort RS Turbo MkIV, the Renault 5GT Turbo, the Peugeot 205GTI – Volkswagen Golf GTIs are already up there,’ he says.
Sam Fretwell of Classicwise Associates, Nottingham, agrees with Karl. ‘Fiesta RS Turbos are seeing ever stronger prices, as are Golf GTI MkIIs and Peugeot 205GTis. But some older cars are due to rise, too. Lotus Europas will rise, now Elans are out of the reach of most people, demand for Europas will increase and the prices go up accordingly.’
James Dennison of Brightwells auction house says Japanese cars are increasing in popularity, and good examples of the BMW 6-series and Porsche 944 are sharply increasing in value. ‘Interest in pre-war cars is waning, though,’ he said.’They have a core of fans but there’s little new blood coming through.’
Why all the 1980s interest? Steve Hanks at Blue Dragon Classic Cars, of Witham, Essex, has the answer. ‘We’ve a lot of younger customers with plenty of disposable income now, and they’re buying the cars they remember from when they were children. We buy classic cars for nostalgic reasons and this is where the new nostalgia lies.’
Roger Chinery of Affordable Classics in Halstead, Essex, reckons lower-specification cars will be worth watching. This is regardless of their era, as the established performance models have risen beyond the reach of many.
He said: ‘I think entry-level classics such as Sierra GLs and Cortina Supers are taking the place of the halo cars among enthusiasts with less cash to spend.’ This faith in the well-established classic choices is shared by Mal Bishop of Sheffield’s Spurr Classic Cars, who sees the Ford Consul, Zephyr, and Zodiac as cars to watch as well as the P5. 
He said: ‘They’re all undervalued. More modern cars like the Rover SD1 are overdue a rise too, but I think there’s certainly room in the market for prices of 1950s and ‘60s saloons to go up a little more.’
None of our experts believes the market will crash in the near future. Karl Fasulo said that some more highly desirable models are likely to level out, but that the market is not at risk of a 1990s-style bubble-burst. 
He said: ‘There are areas of the market which will either stabilise or show negative growth, too. For example, it’s unlikely air-cooled Porsches can sustain the sort of level of growth we’ve seen recently. The market won’t collapse though – it’ll stabilise and level off, because growth has been steady and prolonged.’ Sam Skelton