Internal combustion engines and the strong growth of classic cars post 2030
Director Classic, Vintage, & Sports Car Finance
Despite significant economic and political headwinds in 2022, the market for specialist, high-value cars remained very strong last year – part of a longer-term trend seen prior to Covid-19 and in 2020 and 2021.
There will be some allowances, such as around hybrids. In addition, the European Union recently created a carve out, following sustained pressure from German and Italian car industries, to allow the production of cars that will run on so called E Fuels - which could be great news for all petrol heads out there.
E Fuel, short for Electro Fuel, is a new industry development currently being spearheaded by a handful of firms, including Porsche. The process, which involves using captured carbon dioxide or monoxide mixed with hydrogen, aims to remove more carbon in the production process than is released in the burning.
While it is very early days, there is a high degree of excitement around E Fuel, which is seen by many as a possible replacement for petrol but with potentially little adaptation needed in many engines and marques, including classic and sports cars.
Indeed, we have seen some record sales over the past 12 months and expect the market to maintain its strength in 2023, particularly the top half of the market, which should remain robust, with prices either stable or appreciating.
Looking farther ahead, a potential threat to market growth and buyer demand could be the ban on the sales of cars with internal combustion engines (ICEs) on 1st January 2030. This is, in some ways, a momentous historical moment given the profound role that ICEs have played over the past century. Nonetheless, post-2030 only new vehicles that are ‘fully zero emission at the tailpipe’ will be on sale.
Notwithstanding industry developments and the move to electric vehicles post-2030, it is very important to remember that the ban on ICEs is on the sale of new cars only. Vehicles made the year before and for decades prior will still be entirely legal. As such, we are very likely to hear the sounds of not just of ‘standard’ ICE vehicles but also classics such as Aston Martin DB6s and Jaguar E-Types for decades to come.
The huge fan base and highly desirable nature of vintage, classic and sports cars, which has been growing not shrinking for many years now, underscores the strong, long-term demand for these assets, many of which are seen as works of art and manufacturing showpieces more than vehicles per se.
In sharp contrast to the doomsayers, I believe values will continue to rise – having an ICE, indeed, could even add further value and cachet over time. Even if the price of carbon-based fuels increases, classic car owners tend to be, by definition, slightly wealthier and/or don’t drive as many miles as normal car owners, so most will be happy to absorb higher costs.
I would expect that driving a petrol car will be legal until at least 2050, though likely to get increasingly expensive. One key question is how long petrol will remain on sale at local petrol stations following the ban. At the moment, this is hard to gauge but given the significant volume of vehicles which will remain in use, then a high degree of accessibility is fully expected.
It is also worth stating that the market for electric vehicles, which remain far more expensive than ICE alternatives, continues to face challenges, most notably around battery efficiencies, the need for rare (and expensive) metals, charging systems, and engine life expectancies.
Hydrogen-powered engines, being developed by many stakeholders who see it as a far greener alternative to electric, could also become a far more competitive consideration before 2030.
For the time being, recent activity at auction houses and showrooms indicates that demand for classics and sports cars remains high. Modern classics such as the Ferrari 458 and F40 are reaching record highs.
Cambridge & Counties Bank itself had a record year in 2022 in terms of our classic, vintage and sports car financing business. Dedicated finance for the purchase of classic cars and sports vehicles through hire purchase and finance lease products increased 17% to £42 million.
The global car industry will in all probability remain very dynamic as we look ahead, with many moving parts and considerations, particularly in terms of new manufacturing developments, the formation of new fuels and fuel alternatives, and geopolitical stresses.
But we firmly expect Ferraris, Rolls Royce’s, Porsches, Jaguars, Lamborghinis – even marques such as Ford Capris, which are enjoying a strong renaissance - will remain iconic, much loved and highly valuable for many years.
Car dreams we've made a reality
2022 Bentley Continental GTCLoan of £178,000 over 5 years This is one of the most elegant luxury convertibles on the current market, and with all the presence of a Bentley, and an aggressive repayment profile, meant we were able to offer a competitive interest rate, reducing the customer’s interest bill substantially. Close Next Item
1966 Porsche 911 SWB Race Car
Loan of £156,000 over 47 months Classic cars will always hold a special place in our heart as they are our passion. We enjoyed funding this special 911 for a customer that purchased it recently from a well-known individual.Close Next Item
2021 Porsche 992 GT3 Carrera Cup Car
Loan of £166,800 over 12 months
One of a number of the Porsche Carrera Cup cars we have funded this year, and we are extremely proud to be involved in the close racing this year. We have been fortunate enough to have seen them live in action on more than one occasion. These particular cars are so desirable and hold their value well, allowing us to structure a wide variety of options for our customers.
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2022 Rolls Royce Cullinan
Loan of £200,000 over 2 years Our first Cullinan, an absolutely massive car, but still with all the renowned presence of a Rolls Royce. The customer sought an aggressive repayment profile, which allowed us to offer a more competitive interest rate. This also allowed them to swap the asset for another Cullinan at the most recent plate change without having to make any changes to the existing agreement when changing the asset over.Close Next Item
2011 Porsche 911 GT3RS 4.0L
Loan of £300,000 over 3 years The 997 GT3RS 4.0L is a rare and highly desirable 911, made in limited numbers with a worldwide demand. As such we were more than happy to release equity to this customer to use for other projects. Truly one of our favourite Porsches.Close Next Item
2019 Porsche GT3RS, 2018 Porsche GT3 and 2015 Porsche Turbo S
Loan of £367,119 over 7 years It was a delight to visit this customer’s small collection of Porches. Historically holding their value well, we were able to assist the customer in refinancing 3 existing agreements into one, helping them save a sizable amount on monthly payments and interest rate protection over a longer period of time.Close Next Item
2022 Aston Martin V12 Vantage
Loan of £274,000 over 48 months Possibly the last V12 to be made by Aston Martin, these are special cars that carry the price tag to match. Our competitive structuring allowed us to compete with dealership finance. It was a pleasure to visit this car personally before collection by the customer.Close Next Item
2018 McLaren Senna
Loan of £647,000 over 5 years This was a straightforward refinance of an existing agreement for an existing customer. Using our specialist asset knowledge, we were able to value the asset and structure a 5-year term at a highly competitive interest rate.Close Next Item
1958 Jaguar XK150, 2022 Porsche 911 GT3, and 2018 Porsche 911 GT3RS
Loan of £649,990 over 4 years The customer had recently purchased a 992 Gen GT3 for cash and was seeking funds back alongside finance to purchase a 991 GT3RS. Our proposed terms allowed them to use an existing unencumbered asset combined with the two purchases, resulting in the customer successfully purchasing the GT3RS without having to put down cash. An excellent example of how we can uniquely structure deals that work for our customers.Close Next Item
2017 Audi R8 V10
Loan of £85,000 over 5 years Presented with a short timescale, we pulled out all the stops for our customer to approve, document, asset inspect and draw within 5 working days. The customer was delighted with the results and our efficient turnaround.Close Next Item
A collection of rare modern Ferraris & Porsches
Equity release of £750,000 over 4 years A customer required funding to acquire a new race car and parts package, however the manufacturer wanted payment before the car was built and delivered. We arranged the equity release from some of his existing collection to facilitate the purchase, and structured the balloon to allow him to have a round monthly payment to assist him in his bank account management. A great example of our bespoke racing car finance solutions.Close Next Item
2020 McLaren 720s GT3
Loan of £350,000 over 5 years We are massive motorsports enthusiasts. With our own connection to the 720s, we understand the risk and value that comes with modern race cars, meaning that we were fully able to assist our customer with this purchase.Close Next Item
1966 Aston Martin DB6
6Loan of £350,000 over 5 years We were happy to help a customer purchase their first classic car, and what better one to start with than a stunning concours standard DB6. From the initial contact, the loan was drawn down within 9 working days thanks to the close co-operation with the dealer, allowing the customer to use the car at a special occasion.Close Next Item
1993 Porsche 959
Loan of £667,000 over 4 years An extremely valued and existing customer as well as Porsche aficionado, approached us after securing the opportunity to purchase this magnificent Porsche. We were more than happy to help!Close Next Item
A collection of fine Porsches and other Classic Cars
Loan of £1,215,000 over 5 years A customer approached us directly as he sought to fund the purchase of a rare classic Porsche, refinance another, and release some equity to allow him to take advantage of buying opportunities in the current market. With our knowledge and understanding of the industry, together with a full suite of information, we were able to turn around his application and draw down funds in 7 working days. This included the asset inspection of cars in multiple locations and dealing directly with the dealers. The customer was delighted with his new purchase.Close Next Item
2020 Brabham BT62
Loan of £675,000 over 5 years We were beyond excited to help a customer with their purchase of this new supercar that bears the legendary Brabham name. This is an outstanding car, that we hope to be able to have a ride in someday.Close Next Item
2019 Aston Martin Vantage GT3 Race Car
Equity release of £410,000 over 4 years We were given the opportunity to refinance a rare and popular race car. Due to the simplicity of the customers situation we were able to structure the loan appropriately and release some cash from their asset.Close Next Item
1960’s Shelby Mustang GT500
Loan of £100,000 over 5 years A customer wanted to treat themselves on a landmark birthday. We were happy to approve his loan quickly allowing them to buy in confidence from mainland Europe. Once the car was imported from the specialist, we arranged an asset inspection at a convenient place for the customer and were happy to release funds shortly afterwards.Close Next Item
1960’s Ford Falcon Sprint
Loan of £57,500 over 5 years
An existing customer approached us, via his trusted Broker proposing to buy the stunning Falcon Sprint. We were more than happy to help. The customer was planning to race the car at classic events and given his experience, together with insurance arrangements, we were comfortable with this and look forward to seeing the car in action.Close Next Item
1950’s Cooper Climax Formula 1
Loan of £75,000 over 5 years
We were delighted to fund a rare and prestigious car for a very experienced collector. With relatively simple financials, the funds were arranged and drawn down in less than a week allowing the happy new owner to enjoy the car in its full glory.Close Next Item
1933 Alfa 8c Touring
Loan of £750,000 over 4 years Customers often approach us to release funds from the cars in their collection for various purposes. An existing customer reached out to us as they required funds to purchase shares giving them the controlling stake in a company. Given the variety of income sources and overall LTV, we were happy to structure a transaction that allowed the customer to minimise his payments and where he had multiple options to fund the payment at the end of the agreement.Close Next Item
1910 Rolls Royce Silver Ghost
Loan of £275,000 over 3 years
A customer reached out to release funds from one of their cars. We were delighted to lend against this iconic Rolls Royce, which allowed our customer to free up cash and add to their collection.
Loan of £527,000 over 5 years
We worked with a customer to acquire a rare and beautiful vintage Bentley, the customer was in the process of buying a few classic & vintage cars so we had a required monthly budget to work to. We were able to structure the vintage car finance to meet this requirement allowing the customer to acquire this valuable car, via private treaty and ensuring it remained in the hands of a true custodian and enthusiast.Close Next Item
1990’s Group C Race Car
Equity release of £250,000 over 5 years
The customer owned a number of race cars and required to release some equity from one of his collection to assist in the restoration of another of his cars. We could appreciate the value of the asset and as such could deliver an equity finance structure that allowed the customer to release equity at an affordable monthly payment.Close Next Item
Loan of £85,000 over 4 years
Like we all do, the customer had fallen in love with a beautiful red Ferrari, in conjunction with his broker, from application to draw down, we made the funds available within a week. The classic car finance balloon was deliberately structured to ensure that the customer had adequate protection in the event of a reduction in prices allowing to have equity in the car or be able to refinance.Close Next Item
Ferrari 275 GTB
Loan of £1,600,000 over 7 years
We worked with a customer to release equity on their existing car to raise a cash deposit for a new purchase. Their existing car from which we released equity was a Ferrari 275 GTB, a truly exceptional car to come across!Close Next Item
2020 Aston Martin DBS Superleggera OHMSS
Loan of £158,000 over 5 years
As fellow Bond fans, this was a joy. The limited-edition Bond themed car was a birthday treat for our customer. With our involvement within the community, we were not only able to finance this car, but we were also able to connect the customer with someone we knew that was selling the car for a lower price.Close Next Item
2018 McLaren 570S GT4
Loan of £116,462 over 3 years
We have funded many of these fabulous GT4 race cars and this one was no exception. This is a car that is ready to race. We understand how they are going to be used and know many of the race teams that run them for our clients.Close Next Item
1965 Aston Martin DB5 Convertible
Loan of £700k over 3 years
This is an extremely rare car, yet still the second one we have financed in the last 3 years. It is a beautiful and truly exceptional asset. The customer required a very short timescale from approval through to receiving the funds due to a vendor deadline. The team went above and beyond to ensure we delivered ahead of schedule, much to the delight of all parties concerned.Close Next Item
2013 Ferrari 458 Spider
Loan of £148,000 over 7 years
We were delighted to fund an existing customer’s very first Ferrari. This is a great car, that remains highly desirable. Not only does it look sensational, but it sounds it too. We had one extremely happy customer.Close Next Item
1965 Aston Martin DB5
Equity release of £300,000 over 5 years
A UK customer who was about to become an expat abroad, needed to release equity from his car to invest in a business venture. We came up with a flexible solution that allows repayment early with a fair charge that makes allowance for the fact the customer had high bonus potential. The deal completed within the timescales required.Close Next Item
Rare 1983 Aston Martin V8 Vantage
Equity release of £350,000 over 5 years
A customer required equity release from one of the cars in his collection to assist with the development of his property, despite having recently financed the vehicle our expert knowledge allowed us to fully appreciate the value of this rare and exceptional car, allowing the customer to release some additional funding.Close
Types of finance we offer
Finance designed to purchase your car.
Releasing the equity tied up in your classic, vintage, sports or supercar.
Up front approved funding to allow you to bid at an auction with confidence.
Finance to either restructure your existing funding mid term or to replace an existing loan at the end of the term.
Take a look at our other blogs
Cambridge & Counties Bank to hit £100m in Classic & Sports Car finance as demand revs up
Cambridge & Counties Bank expects to break the £100 million mark in financing for Classic, Vintage and Sports (CVS) cars in 2023 as demand for specialist car lending continues to increase in the UK.
Internal combustion engines and the strong growth of classic cars post 2030
Director Classic, Vintage, & Sports Car Finance Despite significant economic and political headwinds in 2022, the market for specialist, high-value cars remained very strong last year – part of a longer-term trend seen prior to Covid-19 and in 2020 and 2021.