Liquidity Services- August 13, 2015
The market for classic cars is growing, and the current environment is rife with profitable opportunities for sellers. Built between the years 1925 to 19481, classic cars are notable for their unique designs and high engineering standards, and are considered valuable due to their low production volumes.
According to a report from Hagerty, an insurance company that serves owners of classic cars, the demand for the vehicles has grown by about 2 percent in the last four months, which is the greatest increase in any four-month span over the last two years2.
As for what's driving this growth, Fox Business explained that as of late last year, there were more buyers than sellers in this market, which appears to be the primary reason that classic cars are rising in value3. This post will look at how classic car sellers can reap the benefits of the reverse supply chain through online marketplaces in the growing market for these unique automobiles.
The Reverse Supply Chain for Classic Cars and Spare Parts
Very often, classic cars are resold for their original purpose – the purchaser wants to make an investment. As Hagerty demonstrated, the value of classic cars is increasing, making them a lucrative investment opportunity right now. But not all buyers in this market are looking to buy a whole new vehicle. They may just be interested in picking up spare parts, such as engines, gearboxes, and wiring harnesses.
Classic cars can lose value if they lack a portion of their original parts, which is why collectors will often seek these parts for their own vehicles. A seller who possesses original classic car parts can sell them to other collectors who may be willing to pay a premium for the rare parts. This makes it possible for buyers to find the components and subassemblies they need to preserve the value of their own cars while acting as another possible capital stream for classic car sellers.
Classic cars like this Elfin T5 listed on Liquidity Services' GoIndustry DoveBid marketplace are quickly rising in value.
How Liquidity Services Maximizes Recovery on Classic Car Sales
In the past, classic car sellers were limited to selling through local channels, but it's not always easy to find a nearby buyer for your specific car. If you do find one, you may not get the recovery you want. You can maximize your chances of finding bidders and ensure optimum recovery by using an online marketplace that specializes in sales of capital assets like classic vehicles.
Liquidity Services helps you sell your classic cars for maximum recovery. With nearly 3 million buyers in almost 200 countries and territories as well as 23 million unique visitors and 800 million page views for our online marketplaces for surplus assets every year, Liquidity Services helps collectors all over the world sell their classic cars and car parts for maximum value.
Through Liquidity Services' online marketplaces, you can conduct auctions that reach the greatest amount of potential buyers and maximize recovery value, as many bidders compete and drive up prices. For example, one Liquidity Services client exceeded its expected recovery value by generating $200,000 in total sales for classic and military vehicles. Our multichannel marketing strategies generated 200,000 page views and 150 unique bidders for this auction.
An Australian seller is using Liquidity Services' GoIndustry DoveBid marketplace to facilitate a private treaty sale of class Elfin-branded assets.
Online Auction or Private Treaty?
Online auctions expose surplus assets to the most possible interested buyers, making them ideal for assets in high demand. With online auctions, sellers can include high-quality pictures, videos and complete descriptions to increase buyer comfort and make them more likely to place a bid.
Private treaty sales are in-person events that allow buyers to get an up close look at the assets before they make a purchase. Private treaty sales are often desirable when the assets are extremely rare and/or of high value. Listing assets online helps sellers of classic cars reach a highly targeted set of buyers throughout the world and attract them to an in-person viewing.
This current listing on Liquidity Services' GoIndustry DoveBid marketplace serves as a great example of what an online listing can do. The seller has listed a full range of assets from Elfin, a classic car maker, and includes everything from production equipment and intellectual property to five Elfin sports cars and a collection of spare parts. Using high-quality pictures and detailed listings, this Australian seller will be able to attract buyers from all over the world to its private treaty sale for these rare assets.
The classic car market is growing and sellers will be able to make the most of the opportunities available by taking advantage of Liquidity Services' wide reach and diverse sales channels.
1 From Classic Car Club of America, http://www.classiccarclub.org/grand_classics/what_is_classic_car.html
2 From Hagerty, Collector Car Indexes https://www.hagerty.com/valuationtools/market-trends
3 From Fox Business, "As Market Expands, Classic Car Values Rev Higher." http://www.foxbusiness.com/industries/2014/08/05/as-market-expands-classic-car-values-rev-higher/