How The Aussie Used Market Went Nuclear

The million-dollar barrier has been busted for a used aussie car, but as people pay record amounts for collectibles and classics, is the market running on empty?

- Damion Smy & Byron Mathioudakis

IMAGINE PARENTS IN the 1970s, ’80s or ’90s saying to their kids, “Secure your future, children – get yourself a Falcon GT-HO!” Yet can something that posts a 14-second quarter-mile really post a financial return, too? A seemingly laughable proposition is now, decades later, a serious approach taken by investors looking to build their wealth as they diversify from more traditional investments including property, shares and even gold. Buying a piece of automotive history has delivered some owners serious profits, while there’s still a strong number of buyers willing to pay serious money as record auction results, clearance rates and prices continue to rise. How did we get to people paying more than a million dollars for Holdens and Fords, and when will it stop?

The rising economy of the last decade has seen classic and collectible cars increase in value, but there’s more elements that have created a ‘perfect storm’ of high values. Put simply, it’s as plain as supply and demand, and in Australia, that has been fuelled by nostalgia as local manufacturing ended for Holden, HSV and Ford.

“Investment grade cars are getting the record prices, so when you look at what people are buying and who’s buying the cars, they’re obviously high-wealth individuals, and they’re looking at these cars as another portfolio of investments for their super fund,” explains Steve Waterman from Slattery Auctions, where a record was set when a GT-HO Phase III was sold for a record $1.15 million only weeks after an HSV GTS-R W1 Maloo sold at Lloyd’s for $1.05 million. “What we did see out of this auction was the sheer volume of high wealth individuals that were chasing these cars. It was quite extraordinary; it was almost like price wasn’t an issue – I want that car.”