Value appreciation for classic cars
The German Classic Car Index “DOX” (Deutscher Oldtimer Index) records a value appreciation for classic cars of 4.8% compared to the previous year – the increase in value in Germany since 1999 thus amounts to 190% according to the DOX.
WHAT IS THE GERMAN CLASSIC CAR INDEX (DOX)?
The entire classic car market is monitored on behalf of the German Association of the Automotive Industry (VDA): auction results, as well as private advertisements in portals and magazines. This is used to calculate the classic car index, which is intended to show price fluctuations and trends.
88 market-representative motor vehicles are selected annually for the index and weighted according to their registration numbers. Classic cars that are particularly expensive due to their rarity or history are not included.
HOW DOES THE DOX DEVELOP?
Since the calculation of the DOX began in 1999, the value of the classic cars in Germany selected for the study has moved upwards by 1902 points – i.e. almost 15% per year. This makes the performance of the classic cars considered comparable to the German Share Index (DAX): in the same period, the DAX rose by 231%, which corresponds to an annual return of 18%. However, the DOX indicator as a whole has not experienced fluctuations and price drops like the stock market. Only individual models are subject to changing popularity and demand.
CLASSIC CARS AS AN INVESTMENT?
Nevertheless, one should always be careful and do thorough research when investing in classic cars. Unlike the DAX, there are many factors such as condition or originality that can influence the price of a classic car. A differentiated view and evaluation of the vehicle’s condition by an expert are decisive.
Overall, however, it can be said that the German classic car market is booming: The German classic car market will continue to grow in 2023 and offers both enthusiasts and investors attractive opportunities. The approximately 1 million classic cars in Germany have a total value of 31 billion euros. But for 40% of the vehicles, the market value is less than 10,000 euros.
THE 5 CLASSIC CARS WITH THE GREATEST INCREASE IN VALUE
(2018 TO 2022)
1. Ford Capri (+100%)
2. Volkswagen K 70 (+93%)
3. Volkswagen Passat (+93%)
4. AWZ Trabant (+81%)
5. Pontiac Firebird (+64%)
THE 5 CLASSIC CARS WITH THE HIGHEST DEPRECIATION
(2022 COMPARED TO 2018)
1. BMW CS (-14%)
2. Mercedes-Benz 190 SL (-13%)
3. Jaguar E-Type (-7%)
4. Mercedes-Benz W 108 series (-1%)
5. Mercedes-Benz W 109 series (-1%)
CLASSIC TRADER MARKET OBSERVATION
Especially younger vehicles and French makes benefited from higher sales prices. While the price development for classic cars over 70 years old only increased by up to 2.6%, vehicles from the 80s increased by 6.8% according to the current BBE Classic Study.
Classic Trader also noted a 3% increase in the search volume for youngtimers from the 90s in 2022. The R 107 series accounted for a third of all searches for Mercedes-Benz vehicles last year, up 4% on 2020. Overall, interest in Mercedes-Benz-branded vehicles grew by 13% to account for 30% of global searches on Classic Trader; Porsche increased from 11% to 16% of market search volume over the same period.
CONCLUSION
The current market situation is stable and has grown again in 2022. Individual exceptional classic cars (such as the 300 SLR Uhlenhaut Coupe) and vehicles with special rarity value are being traded at extremely high prices. The fact that classic cars such as Trabant, 2CV or VW Passat are increasing strongly in percentage terms is often due to the low base value. The history and condition of the vehicle are also decisive. The condition of the vehicle can be determined with a pre-purchase appraisal, but an independent appraiser must be consulted for a value appraisal.
Sources: Classic Trader, BBE Classic Studie 2023, OCC, VDA
Photos: Ford, KGF Classic Cars
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