Health check: Why the classic car market is booming

“The Sierra points to an increasing demand for homologation cars that people remember from their youth.”

Another area of the market getting increased activity is desirable cars from the 1980s and 1990s. Hagerty’s classic car insurance business arm reports that nearly a third of the quotes it issued in April were for vehicles from that period.

“The difference between this boom and past ones is that enthusiasts, rather than speculators, are the power in the market,” said Mayhead. “They’re buying the cars that they love and remember from growing up, rather than buying them as commodities. For this reason, we don’t believe the market will get overheated.”

A feature of the past 12 months has been the popularity of car auction websites. Such is their appeal that Bonhams recently purchased online auction house The Market. Launched in 2017, it sold vehicles worth £13m last year and turnover soared by 300%.

Online auction rival Car and Classic has sold £7.5m worth of vehicles across 750 auctions since it was launched last July.

CEO Tom Wood said the firm had a record April, with more than 100 auctions, and looked on target for a record May.

He added: “Searches are up 39% across our top 200 cars. People with pent-up savings is a key driver, but also the growing interest in modern classics from people comfortable with buying online.

“Older people are getting up to speed with online too, and buying this way is arguably safer for them than buying at a physical auction [due to Covid].”

Car and Classic reports that the pandemic has changed the classic cars people are buying, with staples such as the MGB and Volkswagen Beetle giving way to what it calls ‘dream classics’ like the Porsche 911 – now its most searched-for car.

At the same time, ‘youngtimers’, or modern classics, have risen in popularity; the 1980s E30-generation BMW 3 Series is now the third-most-searched-for car on the site.

Japanese exotica including the Toyota Supra, Toyota MR2, Mazda RX-7 and Nissan Skyline have also experienced a surge in interest, as have 1980s hot hatches such as the Ford Fiesta XR2 and Ford Escort XR3i.

However, Wood sounds a warning regarding the reserves sellers set, citing the Jaguar E-Type as an example: “Sellers who are realistic will get good results, but speculators may be disappointed. The market is moving from speculators to enthusiasts who are cannier with their money.”

Traditional classic dealers are also feeling the warmth of a post-lockdown boom.

Mario Fionda, boss of Chelsea Cars in London, says his customers now have more disposable income to spend on the cars of their dreams and that prices for the most in-demand models have risen.

“Prices for good 944s have risen markedly,” he said. “The problem now is finding good stock both of these and all other in-demand cars.”

Matt Smith launched Smith Classic and Performance Cars in Margate two years ago. His original business plan predicted a sale per month, but he’s currently averaging four.

He said: “I’ve experienced an influx of people wanting to buy 1980s and 1990s cars. My most recent customer bought a Peugeot 205 GTi for his 50th birthday, while a couple who want to tour car shows this summer bought a Ford Escort Popular from me for £6000.”