Simon Hill, managing director of Total Motion, gives his thoughts about the future ban on the sale of new conventional petrol and diesel cars and how it could mean that older ones could provide a valuable nest egg.
As we know, plans to stop the sale of new diesel and petrol vehicles in 2040 have been introduced, but this isn’t all bad as many current diesel and petrol cars will start to appreciate in value come 2040.
Families can begin to look at the positives; today’s future classic cars could be used as valuable nest eggs or pension pots for the future, industry experts predict.
Car owners who invest wisely and look after their vehicles could well benefit financially.
As a result of the ban, petrol and diesel cars will appreciate rather than depreciate in value in the future, providing their owners with money which perhaps can be passed on to children as a legacy or put into a pension pot.
Luxury cars such as a 1960s Ferrari or an Aston Martin Vantage from 1970s will command a higher price in 2040, but cars such as the 1989 Peugeot 205 GTI or a 1989 Mercedes SL Class are also appreciating in value significantly.
Among the other makes which experts forecast will appreciate in the next 23 years are the Austin Mini Cooper, VW Golf GTI MK1, Ford Capri, BMW M3 E30, Jaguar E-Type SIII, and the original Audi TT.
It will not be until 2060 that diesel and petrol cars will stop being used as everyday cars. This means that many of the cars people are driving around in today will become collectible. Rather than worry about vehicle values falling when the ban comes in to force, drivers need to ask themselves what their car might be worth in 2060.
And people shouldn’t be worrying about switching to an electric vehicle just yet. Although infrastructure for EVs will be in cities by 2040, the rural economy will still rely on diesel and petrol for travel.
Around 30% of households will struggle to run an EV due to electricity supply – many houses will need rewiring because existing circuit boards will not be able to hold the sufficient ampage for a charging point at their house.