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The pastime of collecting classic cars shows no signs of disappearing – however, the market is undergoing a seismic shift, with baby boomers making way for the new generation.

The Federation of British Historic Vehicle Clubs’ (FBHVC) 2020 National Historic Vehicle Survey revealed that the number of historic vehicles on UK roads has grown to more than 1.5 million, up from one million in 2016. There are now nearly 700,000 classic car owners in the UK, a rise of 200,000 in just four years. That means around 1% of the UK population now owns at least one historic vehicle, which is great news. Here at Lancaster, we help over 96,000 of them find classic car insurance!

The survey also revealed that each vehicle is used 16 times a year on average, and covers around 1,200 miles per year. Low annual mileage is one of the reasons that classic car insurance is often cheaper than that of a standard vehicle. Protecting your classic from risks like fire, theft and accident is more affordable than you think.

This might also play a part in why the younger generations are becoming classic car enthusiasts. However, there’s more to it than the prospect of cheaper car insurance, of course.

Why do people collect classic cars?

If you’re a seasoned collector of classic cars, you’ll need no explanation as to the appeal of doing so. But if you’re new to the market, having had your interest piqued, you might want to find out a bit more about the benefits of owning a classic car. So, let’s take a look at what is turning people on to the prospect of becoming a classic car owner for the first time.

• Classics can appreciate in value

Everybody knows that as soon as you drive a new car off the forecourt, its value immediately depreciates and you’re effectively losing money. That can be a tough pill to swallow. When you buy a classic, however, its value can actually increase over time – especially if you have spent a bit of time and money repairing and restoring it. In fact, there’s some good money to be made from buying and selling classic cars, if you pick the right make and model.

• You won’t have to take out credit to buy a classic

There’s a growing trend, especially among the younger generations, to finance the purchase of a new car by taking out credit. While a personal contract purchase (PCP), as they are known, can seem an appealing way to own a new car, it’s an expensive way to go about it. A classic car, on the other hand, can be picked up cheaply, meaning you don’t have to find big sums of cash or take out credit in order to get a set of wheels on the road.

• Classic cars provide a better driving experience

Modern cars are designed to be safe and reliable – but that often comes at the expense of the driving experience. It can be a little run of the mill driving a new car – they are largely one of the same. Classic cars might not have the DAB radios and air con built in, but they’re much more enjoyable and exciting to drive. Having a classic as your first car will also teach you about stopping distances and anticipating the road ahead, too!

• You learn a lot about car mechanics

By their own admission, millennials are notoriously clueless when it comes to the mechanics of how a car works. In a recent survey, almost three-quarters of millennials admitted they don’t even know how to change a tyre. As a classic car owner, you’re forced to learn about car mechanics, be it to get it on the road or restore it to its former glory. Anybody can now become an expert, with a YouTube tutorial for just about every aspect of car mechanics. If you need further help, classic car club members are only too happy to lend their expertise.

• A classic car can reflect your personality

We might be biased here, but when we look at most modern cars, we see a distinct lack of character. In contrast, classic cars are so much more distinctive – you can find one that really resonates with you and your personality.

• You’ll meet new people

We’ve already touched on the classic car community, but we can’t overstate how rewarding being a member of a club can be. It’s a fantastic opportunity to meet new people and share tips to bring your project to life. The digital age has only served to make it easier to make connections and share that passion for collectible classics.

What cars will become future classics?

It’s not hard to see why the next generation has taken a keen interest in classic cars. With so many young people taking a digital detox, owning a classic car is an opportunity to connect with the real world. However, that’s not to say that the next generation are going to collect the same cars as the generations that have gone before them.

Modern enthusiasts are focusing their attention on cars from the late 1980s and early 90s, in the hope that they go on to become future classics. Here are some of the cars that have been gaining some traction recently:

 Peugeot 306 GTI-6 (1996-2001)

The Peugeot 205 GTI is the hot hatch everybody wants right now, with prices for the lowest mileage cars exceeding £25,000. But many now believe the 306 GTI-6 could follow suit.

Audi A2 (1999-2005)

The compact Audi A2 wasn’t a sales hit when it was new – but that has only served to push the price up for owners who were won over by its clever engineering.

MG F (1995-2002)

British drop-top sports cars are highly sought after. The MG F was a bit marmite on release, but if you find a good one, it’s a real driver’s car.  

What are your tips for future classics? Remember, we can quote for any type of classic car here at Lancaster – old or new.

Helping the next generation of classic owners

The team at Lancaster is passionate about classic cars. We want to help the next generation of owners get on the road and experience the joy of driving a vintage vehicle.

No matter what type of classic you fall in love with, we can find you the classic car insurance to match.

With discounts for club members and limited mileage, owning a classic car has never been more affordable. So why not stand out from the crowd?

Get a quote for classic car insurance today.