The number of people asking about pawning their classic cars rose more than a third between October last year and March this year as their values soared almost 500 per cent.
HNW Lending, a high-end pawnbroking service, said the number of people enquiring about securing loans against their classic cars rose 35 per cent between October and March compared with the previous six months, and 27 per cent compared with the same period a year before.
Since its launch earlier this year, the company has lent £1m against classic cars, with one customer securing a £150,000 loan against a 1969 Lincoln Zephyr, a Porsche 911 and a 1957 VW Samba Bus, while another borrowed £120,000 against a 1962 Bentley S2 Convertible.
The company said the jump in enquiries was partly thanks to soaring values of classic cars, which rose by an average of 467 per cent in the decade to March last year, and 161 per cent over five years.
|Type of classic car||Value of vehicles||Value of loan provided against these vehicles|
|1966 VW Panel Bus||£50,000||30,000|
|1939 Lincoln Zephyr, Porsche 911 and a VW Samba Bus||£260,000||£150,000|
|Porsche 911 – 1980S Air aspirated turbo||£100,000||£50,000|
|Red and Black 1957 Volkswagen 23 Window Samba Bus||£90,000||£40,000|
|1962 Ford GT 40 Recreation||£115,000||£40,000|
|1962 Bentley S2 Convertible||£215,000||£120,000|
|1972 Jaguar XKE||£70,000||£35,000|
|Customised Mercedes Maybach||£100,000||£50,000|
|Bentley Continental Flying Spur Saloon||£35,000||£20,000|
|Porsche 911 3.2 Carrera Targa||£40,000||£30,000|
“There are three main factors driving a rise in the valuation of classic cars, and these are rarity, the story behind a particular make of car and its overall wow factor," said Ashley Maddox, co-founder of AG Classic Automobiles.
"Racing cars are particularly attractive and a 1967 Ferrari 275 Spider identical to one driven by Steve McQueen in the film ‘The Thomas Crown Affair’ recently sold for $27.5 million (£21.2m).
"Similarly, a 1962 Ferrari 250 GTO recently went for $38.1 million. Earlier this year, Bonhams the auctioneer sold an original 1963 Jaguar E-Type Lightweight Competition for $7.37 million, making it the most valuable E-type to sell at auction.”
If you're looking for an investment, though, it might be worth aiming for something more modern: a list published by Footman James last year showed the Peugeot 205, the Land Rover Defender and even the VW Golf were among the cars with the fastest-rising values.