Skip to content

Why Classic Cars are More Valuable than Ever

The value of classic cars has been increasing significantly in recent years – owners could be sitting on a nice little nest egg for the future.

While many motorists have always been interested in classic cars, the number of people who actually own one is declining. According to the DVLA, around 340,000 cars aged 40 years or older are still registered on its database, although only 88% are driven regularly, with the others being listed as SORN. This compares with 479,975 registered in 2020, when cars made in 1980 first joined the classic car category.

© Valley Journal / Shutterstock.com

While the definition of what constitutes an old classic car varies, any motor vehicle over 20 years old is considered collectible by some enthusiasts.

The majority of UK insurers require a vehicle to be 20 to 30 years old before being considered for classic car insurance, which can be cheaper than regular premiums. Only cars aged 40 years or older are exempt from road tax.

Why has classic car ownership declined?

Classic car ownership peaked in 2020 and continued to rocket in 2021, when there were 496,477 registered owners in the UK. However, the number has dropped steadily since. Market analysts suggest this was due to the Covid-19 pandemic, as more motorists were hanging onto their car when they might have otherwise sold or scrapped it for a newer second hand model under normal circumstances.

In addition, people stuck at home with more time on their hands during the lockdowns may have started working on an old car as a project to while away the hours, but once they returned to work, scrapping or breaking it for parts became the most cost-effective option.

Despite the number of owners declining, the value of the classic car market is increasing steadily, with the UK’s dealer sector expected to grow by 1.7% to almost £2 billion in 2025, according to data from the Market Research Report 2014-2029.

The surge in values has led motor enthusiasts to question why this is the case, as it has definitely become a sellers’ market over the past couple of years. We’re taking a look at why second hand car values have increased, with British classic cars helping the economy to recover from its recent slump. Just why are vintage cars becoming prized assets for enthusiasts?

Supply and demand

One of the key reasons that vintage car values are increasing is their rarity, as many are no longer produced. Consequently, the number of models decreases over the years and they become harder to find and therefore more valuable. The laws of supply and demand kick in and the rarer the model, the more valuable the car will be.

Nostalgia

The iconic status of classic cars due to an association with a specific era makes them highly prized by enthusiasts. Their nostalgia value reminds people of their youth, a happy time in the past, or a lifestyle they enjoyed. When a potential buyer sees a vintage car that evokes a feeling of nostalgia, they’re more likely to buy it.

Investment potential

Classic and vintage cars are viewed as good investments, as they hold or increase their value, unlike modern cars, which tend to depreciate rapidly. Petrol heads are willing to invest in a classic car as an asset, with many buyers spending a lot of money on their chosen vehicle, safe in the knowledge it’s likely to increase in value.

Cultural influence

Classic cars are cultural icons that have a long-lasting impact on popular culture. Frequently featured in films, literature and music, where they often have their own character; they can represent freedom, luxury, rebellion and a whole range of other emotions. An example of this is the vintage Volkswagen Beetle, which is one of the best value second hand cars,  forever known as a “Herbie” thanks to its starring role in the franchise of films about the little racing car, which began in 1969 with The Love Bug.

Other cars that represent an era include the Ford Mustang, which represented the American dream in the 1960s; the Chevrolet Chevelle SS 454, an iconic high-performance car from the 1970s; and European classics like Porsche and Ferrari, all of which are enjoying an increase in value.

Cars that are popular as collectors’ items in the UK include the sporty MGB, as there are around 28,300 still on the road, according to DVLA data; Morris Minors, the vintage car chosen by 10,390 motorists; classic Rolls Royce, with 5,575 still on the road; and Triumph Stags, with 4,500 still motoring today.

Maybe you are wondering, what is the value of my car?

If you own a vintage car, it’s possible to get a broad idea of its worth with a simple Google search for “value my car”, as many second-hand car sellers provide an online tool where you can input the vehicle’s details and receive a figure via email. However, most dealers are looking to pay the lower end of the price range in order to make money when they sell a car on, so you may be better off joining an enthusiasts’ group, or visiting a specialist dealer, to get a more accurate idea of its value.

The estimated value of car marques can vary greatly due to the afore-mentioned supply and demand, as if your model becomes rarer, which invariably all cars do over time, its value will increase as more people seek a decreasing number of models still on the roads.

Other factors that influence value include the condition, as cars that have been looked after properly will obviously be worth more. Also take into account its originality, ensuring any restorations are as authentic as possible; rarity; and ownership history, as the more documentation your car has, the better.

Some vintage cars have sold for way above their original list price, such as a 1997 white Ford Escort that sold for a record £200,000 at auction in November 2024 at Birmingham NEC’s Classic Motor Show. With only 2,000 miles on the clock, the rare RS Cosworth Lux model had hardly been driven for 27 years and was in mint condition.

In April 2024, an iconic D-Type Jaguar sports car valued at £1.7 million was named as one of Britain’s most wanted classic cars by specialist insurance company, Insure My, based on a poll of 2,000 vintage car enthusiasts. It was manufactured between 1954 and 1957 for the Le Mans 24-Hour Race and very few survive.

The Aston Martin DB4GT Zagato, one of only three ever  built in collaboration with the Italian marque, sold for £10  million in 2018, topping the list of UK collectors’ most desirable classic cars.

Vintage cars look set to continue to increase in value as truly iconic models from the 1960s to 1980s become scarcer and interest peaks.

Facebook
Twitter
LinkedIn