Since the start 2017 Bilweb Auctions have sold approximately 3000 classic cars and motorcycles on their online auctions. The interest is growing, both from buyers and sellers. 400 000 enthusiasts visited Bilweb Aucions during September and October.
But is a classic car an investment, and what should you think about when buying one? We asked Michael Luft, a true car enthusiast, and one of the founders of the auction company Bilweb Auctions.
Is it a good investment buying a classic car?
- With the hobby perspective in mind, you can get your money back and more, says Michael Luft
The interest in classics is big in Sweden. The Motorhistoriska Riksförbundet has approximately 100 000 members in 200 clubs. The American Car Club in Sweden has 15 000 members and the Facebook group “We that loves veteran cars” has 70 000 members. Great communities.
- More and more people discover the charm owning an older car or motorcycle, and the work around it. It’s the journey that become the goal. Also, all the positive attentions you get driving around in a classic, says Michael
What should you think about when buying a classic?
- Go for a car that works well technically. If you must fix the engine or the transmission, without the skills yourself, it can be expensive. But if you buy a Volvo PV544 Sport from the 1960s for 50-100 000 kronor, and invest in new interior and new painting, you can sell it for 200-300 000 kronor. You can also hire someone to do the work, and still get the money back, says Michael
Another example: Buy a Volkswagen Type 1 for 30-50 000 kronor and fix the brakes, interior, and painting and you can sell it for 100 000 kronor.
- But the most important is the investment in all the joy and happiness you get owning a classic, says Michael Luft. The social part, he says, mentioning the development in Germany were traveling agencies are targeting car owners with trips including nice driving experiences, great hotels, and good food. A phenomenon that will grow.
Today, there is high demand for fine cars from usual car brands as Volvo, Saab, Volkswagen, Mercedes, and American brands. The access to spare parts is good and much still produced. If you join a club, you also get a low cost for the insurance.
Michael Luft´s classic car categories
1. ” Grandpa cars” from the 1920s to the 1940s
2. Veteran cars from the 1950s to the 1970s
3. Modern classics from the 1980s to the 1990s
4. 2000s and younger
- Cars from 2000s and forward are to technically advanced and computers takes over. More than 80 percent of the cars from the 1990s is already gone and they are scrapped in high rate. If you buy a car from the 1990s with less than 200 000 km on the clock, you have bought yourself a very useful classic, says Michael
Why are online auctions the right channel for buying and selling classics?
- The auctions concept is fair. You always get a market price, both sellers and buyers. Online auctions are especially effective when it comes to classics. Fewer cars available on the market, often unique cars, and many buyers. As a buyer you decide what you want to pay and as a seller you can have a reserve price, says Michael.
Bilweb Auctions has two auctions every month with 40 - 50 classics each. Within 12 month there will be 70 - 100 objects per auction. The website bilwebauctions.se has 200 000 visitors every month and 15 000 registered buyers, both locally in Sweden, and all around in Europe. And with 20 000 followers in social media the reach is great.
- There is a high demand selling classics in Sweden, and there are a lot of older cars here. More and more sellers want auction companies to handle the whole sales process, avoiding problems. Also, to secure international marketing of their cars. The prices are 20 percent higher in for example Germany. That is, however, expected by the buyers if they should find it worthwhile travelling to Sweden, says Michael.
If you only can choose one classic car to drive around next spring, which one is it?
- A Volkswagen Type 1 from the 1960s. Preferable a convertible. Nice and reliable, and cheap to own, says Michael.
Bilweb Auctions´s November Auktion 2021
Fiat Dino Spider – 1968
Mercedes-Benz 300 CE – 1990
Volkswagen Type 1 – 1965
4 NOV 10:39 MATHIAS BJÖRKMAN
Both joy and an investment owning a classic
Is a classic car an investment, and what should you think about when buying one? We asked Michael Luft, a true car enthusiast, and one of the founders of the auction company Bilweb Auctions.
