It’s been 10 months since we last put pen to paper to report on the current state of the classic Mercedes Market, although those short months have flown by! After a busy summer of car shows, car sales and conversations, it seems once again that the Autumn has snuck up on us out of nowhere.
Between the falling leaves and darkening skies, the Showroom continues to be a hive of activity and the perfect place to reflect on the year so far.
In our last market report we spoke of a ‘tough economic headwind’, and we’ve all certainly taken a buffeting. Changes in the economy, the wider motoring environment and government legislation have impacted the classic car market, but it’s far from the doom and gloom that some were predicting – and certainly not in the Mercedes-Benz corner of the automotive spectrum.
The most recent HAGI* report has the Mercedes-Benz index pinned at a healthy +1.32 whilst Porsche and Ferrari both show losses of -0.4 and -7.56 respectfully – what this means is the Mercedes-Benz brand remains stable and dependable when compared to the well established occupants of the top table of classic car investment.
Although million dollar metal and Italian investments might seem somewhat removed from our Stratford upon Avon headquarters, the performance of the blue chip classics filters down through the marketplace and impacts consumer confidence in the usable classic car market.
Although a 300SL Gullwing shares little with a 300SL from the 1990s, the interest in the one drives buyers to the other.
Despite tough conditions throughout the year, cars are changing hands at roughly the same rate they always did – Now eagle eyed and avid readers may spot familiar phrases or trends that appear in SLSHOP market reviews, and the repetition isn’t intentional – the truth is that from our corner of the classic car market, it has very much been business as usual.
While some transactions may be taking a little longer than usual to come to fruition, we are seeing a consistent level of interest in cars that are for sale. There has been an undeniable shift in the way that cars are financed, meaning the market is once again strongly enthusiast led.
Where the market had become accustomed to easy access to cheap finance, the fluctuations in interest rates have changed the nature of some sales. A classic Mercedes-Benz is still proving to be a great choice for those with money to invest, taking advantage of dividends, retirement funds or inheritances, and not much has changed in this side of car sales.
What we are seeing is a slow down in the availability of premium grade cars – and this is helping demand to stay strong. The conversation about the current national stock of low mileage SLs is perhaps one better tackled in a wider post in future, but we feel we are at the tail end of low mileage, high quality cars coming out of the woodwork and into the marketplace.
Cars that are already known to SLSHOP, or that are SLSHOP family cars having been sold by us two or three times are circulating within SLSHOP customers and commanding a premium for the very best cars. These can really be split into three categories, which are not necessarily divided by price or model.
Investors are still seeking out the very best examples from across the Mercedes-Benz back catalogue, with the matching number, right hand drive 280SL Pagoda still sitting at the top of the desirability tree. Very low mileage R107 SLs, superb R129s and perfect 190SLs follow suit, completing the picture of the blue chip cars.
The price of the highest grade Pagoda cars is dictated by the rules of supply and demand. There were never many right hand drive 280 examples, and even fewer that have survived intact. Similarly the supply of low mileage, high quality R107 SLs is dwindling while there are more buyers than ever, bolstering prices in these rare cars. Specification isn’t always everything, but as we have said before, desirable options and germanic colours will always help an R107 SL to find a new home.
The middle of the market is occupied by the biggest number of cars and buyers, and it is this area that has been most impacted by the retraction of cheap finance from the marketplace. Smart cars with good provenance, sensible mileage and attractive pricing will always be in demand by enthusiasts. Although we have seen a small downturn in the busy-ness of this aspect of the market, as we have said before, this is not a downturn in sales or transactions but a slowing of the process as buyers take more time with decisions.
Where we have seen changes is in the entry level of the classic Mercedes-Benz market, with a marked change from the post-covid auction frenzy boom. Prices have cooled at the entry level to classic Mercedes-Benz ownership, which unfortunately has populated our workshops with a number of cars that were bought at the peak of the covid price rises. Some customers are finding that the car they bought wasn’t quite the calibre they were hoping for, a symptom of the over inflated prices and panic in the marketplace at the height of the lockdown bull market.
Much has been written about how prices ballooned and then naturally slipped back to their place as the market corrected itself, but this demand has been pushed by something that we can always get behind – the desire to get out and DO things with classic cars.
This summer the show season has been busy, not just with the usual calendar of big events but with a raft of smaller, cars and coffee style pop ups appearing up and down the country. These well attended gatherings are blossoming, introducing a new sort of buyer to the classic Mercedes-Benz market and giving owners a string of new dates to indulge and enjoy their classics.
As we approach another winter we stand with confidence at the open doors of SLSHOP, proud of our offering, and of our customers, and of our place in the wider classic car marketplace. We know that many of our customers have enjoyed 2023 with their cars, and are very much looking forward to improving them through the winter ready for another year of classic adventures.
Part of what buoys our spirit at SLSHOP is the confidence in the cars and our customers. As we have said before, good cars will always find good people, and good people will alway buy good cars – as the days grow shorter we’ll continue to source the very best cars for our showroom, and help customers shop to find the most suitable cars for their needs.
The launch of Assured in the SLSHOP marketplace is another way for customers to buy good quality cars that gain the SLSHOP seal of approval.
No matter your budget or intentions, SLSHOP can help to get you behind the wheel of the right car at the right price for you. Something we’ve been doing for more than a decade, and that we intend to keep doing for another.
It’s been 10 months since we last put pen to paper to report on the current state of the classic Mercedes Market, although those short months have flown by! After a busy summer of car shows, car sales and conversations, it seems once again that the Autumn has snuck up on us out of nowhere.
Between the falling leaves and darkening skies, the Showroom continues to be a hive of activity and the perfect place to reflect on the year so far.
In our last market report we spoke of a ‘tough economic headwind’, and we’ve all certainly taken a buffeting. Changes in the economy, the wider motoring environment and government legislation have impacted the classic car market, but it’s far from the doom and gloom that some were predicting – and certainly not in the Mercedes-Benz corner of the automotive spectrum.
The most recent HAGI* report has the Mercedes-Benz index pinned at a healthy +1.32 whilst Porsche and Ferrari both show losses of -0.4 and -7.56 respectfully – what this means is the Mercedes-Benz brand remains stable and dependable when compared to the well established occupants of the top table of classic car investment.
Although million dollar metal and Italian investments might seem somewhat removed from our Stratford upon Avon headquarters, the performance of the blue chip classics filters down through the marketplace and impacts consumer confidence in the usable classic car market.
Although a 300SL Gullwing shares little with a 300SL from the 1990s, the interest in the one drives buyers to the other.
Despite tough conditions throughout the year, cars are changing hands at roughly the same rate they always did – Now eagle eyed and avid readers may spot familiar phrases or trends that appear in SLSHOP market reviews, and the repetition isn’t intentional – the truth is that from our corner of the classic car market, it has very much been business as usual.
While some transactions may be taking a little longer than usual to come to fruition, we are seeing a consistent level of interest in cars that are for sale. There has been an undeniable shift in the way that cars are financed, meaning the market is once again strongly enthusiast led.
Where the market had become accustomed to easy access to cheap finance, the fluctuations in interest rates have changed the nature of some sales. A classic Mercedes-Benz is still proving to be a great choice for those with money to invest, taking advantage of dividends, retirement funds or inheritances, and not much has changed in this side of car sales.
What we are seeing is a slow down in the availability of premium grade cars – and this is helping demand to stay strong. The conversation about the current national stock of low mileage SLs is perhaps one better tackled in a wider post in future, but we feel we are at the tail end of low mileage, high quality cars coming out of the woodwork and into the marketplace.
Cars that are already known to SLSHOP, or that are SLSHOP family cars having been sold by us two or three times are circulating within SLSHOP customers and commanding a premium for the very best cars. These can really be split into three categories, which are not necessarily divided by price or model.
Investors are still seeking out the very best examples from across the Mercedes-Benz back catalogue, with the matching number, right hand drive 280SL Pagoda still sitting at the top of the desirability tree. Very low mileage R107 SLs, superb R129s and perfect 190SLs follow suit, completing the picture of the blue chip cars.
The price of the highest grade Pagoda cars is dictated by the rules of supply and demand. There were never many right hand drive 280 examples, and even fewer that have survived intact. Similarly the supply of low mileage, high quality R107 SLs is dwindling while there are more buyers than ever, bolstering prices in these rare cars. Specification isn’t always everything, but as we have said before, desirable options and germanic colours will always help an R107 SL to find a new home.
The middle of the market is occupied by the biggest number of cars and buyers, and it is this area that has been most impacted by the retraction of cheap finance from the marketplace. Smart cars with good provenance, sensible mileage and attractive pricing will always be in demand by enthusiasts. Although we have seen a small downturn in the busy-ness of this aspect of the market, as we have said before, this is not a downturn in sales or transactions but a slowing of the process as buyers take more time with decisions.
Where we have seen changes is in the entry level of the classic Mercedes-Benz market, with a marked change from the post-covid auction frenzy boom. Prices have cooled at the entry level to classic Mercedes-Benz ownership, which unfortunately has populated our workshops with a number of cars that were bought at the peak of the covid price rises. Some customers are finding that the car they bought wasn’t quite the calibre they were hoping for, a symptom of the over inflated prices and panic in the marketplace at the height of the lockdown bull market.
Much has been written about how prices ballooned and then naturally slipped back to their place as the market corrected itself, but this demand has been pushed by something that we can always get behind – the desire to get out and DO things with classic cars.
This summer the show season has been busy, not just with the usual calendar of big events but with a raft of smaller, cars and coffee style pop ups appearing up and down the country. These well attended gatherings are blossoming, introducing a new sort of buyer to the classic Mercedes-Benz market and giving owners a string of new dates to indulge and enjoy their classics.
As we approach another winter we stand with confidence at the open doors of SLSHOP, proud of our offering, and of our customers, and of our place in the wider classic car marketplace. We know that many of our customers have enjoyed 2023 with their cars, and are very much looking forward to improving them through the winter ready for another year of classic adventures.
Part of what buoys our spirit at SLSHOP is the confidence in the cars and our customers. As we have said before, good cars will always find good people, and good people will alway buy good cars – as the days grow shorter we’ll continue to source the very best cars for our showroom, and help customers shop to find the most suitable cars for their needs.
The launch of Assured in the SLSHOP marketplace is another way for customers to buy good quality cars that gain the SLSHOP seal of approval.
No matter your budget or intentions, SLSHOP can help to get you behind the wheel of the right car at the right price for you. Something we’ve been doing for more than a decade, and that we intend to keep doing for another.
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