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What’s happening with Vehicle Values at the moment?

I don’t know about you lot, but there isn’t much I like more that scouring the “classifieds”. I’m sure I’m not alone in affectionately remembering grabbing the Trading Post from the local newsagency to come …

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Club 4X4 Insurance
Dec 02 2020

Dec 02 2020

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I don’t know about you lot, but there isn’t much I like more that scouring the “classifieds”. I’m sure I’m not alone in affectionately remembering grabbing the Trading Post from the local newsagency to come back and browse through the automotive listings. Obviously the paper version is long gone; to be replaced with a website that is joined now by a myriad of different resources where you can squander your time dreaming, researching, sharing and just staying in touch with what’s on the market; no matter what your automotive passion may be.

One thing I’ve notice lately is a dramatic increase in valuations across anything automotive. I dread using the term, but a “COVID” tax seems to have been applied to everything from pets to caravans to Suzuki Sierra’s. The latter most relevant as I’ve always wanted to do a build on, so a favourite “search” criteria while sitting on the couch pretending to watch TV with the beloved…

I recently caught up with a mate who trades unique and collectable vehicles, he noted a significant reduction in supply over the last few months. A record number of people are renewing leases rather than re-starting with a new vehicle, and generally, people are hanging onto cars they’d otherwise move on; presumably out of financial uncertainty. He went on to note that the total number of listings on some of the largest car classified websites are down up to 50% – a massive number that justifies his statement around supply.

On the demand side, with the associated COVID-related-border-closure-madness, those who are lucky enough to have disposable income have significant sums of money to throw into new toys. This supply and demand cycle is also causing speculative trading, which has resulted in even more artificial inflation.

Aside from all this, I think we are in a really interesting space with 4X4’s. I’ve said it before, but we are seeing a range of vehicles bucking the traditional valuation trend. I will regularly get certain vehicle types come across my desk and I will conduct a bespoke valuation based on a showcase of the vehicle and some research online. Think all manner of Defenders, 1HDFTE Cruisers, TD42 Patrols along with older units like 60’s and the like that are now approaching historic status and becoming eligible for special registration schemes. I am seeing more and more people restore and preserve these old girls in the same way someone would do to an old Torana or MGB. The difference though is that many of these owners will still use these units off-road which is really nice to see.

It’s hard to tell when or if this bubble (yes, ill call it that!) will end. If you’re not like me and don’t get emotionally attached the vehicles, it may be a good time to sell-up and make a quid! At the very least, make sure you know what it’ll cost you to replace what you’re in now if the worst were to happen – you may be in for a surprise!

If you are not happy with the standard value on your vehicle, and you insure with Club 4X4, we are always happy to manually review it, whether it is your first time insuring with us, or feel that the depreciation applied with your renewal is too much!
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