Globally, the market for classic cars has once again entered a boom period. At home, it has been a record-breaking year for South Africa’s classic car market too.

South Africa’s biggest ever auction of classic cars

The September 2023 Creative Rides classic cars auction is an indication of the sector’s rampant appeal. The Joburg event, attended by thousands of bidders and live streamed worldwide, generated more than R100 million in sales.

Around 200 vehicles exchanged hands over two days in what is, to date, the country’s largest-ever auction of collectible classic cars. Lots went under the hammer for record prices, shattering the ceiling for the total number of sales in the R2 million-plus bracket.

Record prices at Montecasino include:

• R2,375 million – 1964 Jaguar E-Type 3.8 series
• R2,35 million – 2005 BMW M3 CSL
• R2,3 million – Corvette C2 Split Window Coupe
• R2 million – Porsche CT3 RS
• R1,4 million – 1965 Ford Mustang GT350
• R950,000 – 1991 BMW 325iS Evo2
• R830,000 – 2012 BMW 1M
• R830,000 – 2013 BMW M3 Frozen E92
• R555,000 – 1991 Opel Kadett Superboss.

What’s contributing to growth in the classic car market?

Despite adverse economic conditions and rising geopolitical tensions, the classic car market is in overdrive.

These are some of the key growth factors.

Growing recognition of classic cars as financial assets

Over the past few years, classic cars have become a desirable financial asset class. Savvy investors, increasingly drawn by the prospect of high returns, are including vintage vehicles in their portfolios.

The market is no longer exclusively “passion driven”. Classic cars are considered an exciting counterweight to mainstream investment assets. Asset managers are launching funds to invest in authentic, mint-condition automobiles.

Forecasting SA’s record classic car sales at the start of the year, Kevin Derrick, CEO of Creative Rides Auctions, noted that, “Car enthusiasts across the economic spectrum should be looking to classic and collectible cars as a wealth-creation mechanism; something that’s especially important in South Africa.”

Moving online: classic car auctions via the internet

The move by auction houses into the digital space has made events more accessible. Young people, in particular, want to browse auction lots online, bid remotely and conclude transactions through banking apps.

The ease and convenience of digital events and live streaming platforms, coupled with on-site bidders, massively increases the reach of auctions.

At SA’s 2023 Montecasino auction, 2,500 on-site bidders were complemented by a live-stream audience of more than 10 times that.

Increasing value of modern and future classic cars

In addition to the emergence of a growing number of buyers from Asia, the Middle East and Africa, younger buyers are entering the market.

Demand for so-called “modern exotics” and newer classic cars – or cars predicted to become classics – is growing fast in South Africa’s classic car market.

According to Joff van Reenen, director of Creative Rides Auctions, “Millennial and Gen Z buyers’ appetites for modern exotics are also shifting market values, with higher demand pushing up prices of newer collectibles.”

Loans against classic cars: an alternative way to unlock value

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