South Africa’s classic car scene is experiencing enormous growth, in line with global trends that have seen the price of certain models skyrocketing by as much as 40% since late 2021.
This growth is driven primarily being driven by investment buyers in search of moveable assets since the beginning of the 2020 economic downturn, according to Creative Rides CEO Kevin Derrick.
The country’s next big auction will be hosted by Creative Rides Classic and Collectables Auctions on the 2nd of July, which prospective buyers can register for by visiting its website.
A growing industry
Globally, the classic car industry is expected to grow by R200 billion between 2020 and 2024.
However, the value of several models has ballooned up to 40% within the first half of 2022 compared to the top sale prices achieved in 2021, leading analysts to suggest that the four-year trend prediction needs to be revised upwards.
A key part of the success of these rare car sales is attributed to their value as moveable assets and investments.
A recent trend has been the high appreciation rate of newer Ferrari models, starting with the 1987 F40, leading all the way to the 2006 Maranello – one of which will be put to auction next month.
Ferrari has been a leading collector and investment brand for over 40 years, with the first wave of collector purchases taking place in the 1980s.
“There are collector cars, and then there are Ferraris… The cars that Enzo (Ferrari) built are in many respects a market unto themselves,” said Derrick.
In contrast, the muscle car market has been fairly static, which Derrick attributes to the majority of enthusiasts buying these vehicles out of passion rather than profit.
However, South Africa’s enthusiasm for American muscle continues to grow and the market is rebounding to levels not seen since the 2008 financial crash.
“Passion will always factor into classic car ownership, but investment-buying has escalated sharply in the economic uncertainty of the past two years,” said Derrick.
“Classic cars slot into the niche investment category of appreciating moveable assets.”
Derrick likens classic vehicles to fine art and quality gemstones as “you can keep them close and move them at a moment’s notice, but unlike cash under the mattress, their rising values grow your wealth.”
Baby boomers currently account for the majority of supercar purchases, but a growing number of classic car clients are much younger, including Gen-Xers, Millennials, and even Gen-Zers.
The influx of new buyers means a widening subset of cars that will be considered collectables, especially models from Asian markets, said Derrick.
Creative Rides advises buyers to be aware of the wide-ranging definitions of classic and collectable cars when approaching auctions.
“Classic cars are broadly defined as those that are 30 years or older, which means that every year thousands of cars join the pool of stock available in the classic category,” it said.
“Collectables can be classics, but they don’t necessarily have to be as old as the strict classic definition. The biggest factor in defining a newer collectable is scarcity.”
South Africa will be seeing its next major auction on the 2nd of July at Montecasino in Johannesburg, where over 115 exclusive models are expected to sell at multi-million-rand price points.
A few of the cars set to go under the hammer include more than 30 Italian automobiles like a 1984 Alfa GTV 6 3l and a 1968 Ferrari 365 GT 2+2.
American muscle cars are also up for grabs, such as a 1973 Charger and a first-generation Camaro SS dating back to 1968, which have seen sale prices increase as much as 35-40% since late 2021.
The auction will begin at 11am and will be held live and online on Creative Rides’ website and social media platforms.