MGV8 price guides|
are signs the effects of the "alternative investment" activity in the
classic car market have worked down to mainstream classics like MGBs and derivatives
like the MGBGTV8 over the last nine months. The Hagerty
Index indicates that trend has continued with affordable classic cars showing
modest activity. Hagerty mention that in recent months there have been price rises
with hatchbacks from the 80s and 90s.
For mainstream classic cars like
MGBs and the V8 powered variants, including the RV8, a key feature is a relatively
small supply of cars on offer in the market, particularly good quality examples.
So buyers have to work hard to keep up with the adverts and auctions and also
the various online websites where MGV8s are advertised, not least on the V8 website,
and then visit cars promptly to view them before they are sold. We have some evidence
that typically MGV8s are selling at around 7% to 8% off the asking price but of
course for individual cars that depends on the negotiation between buyer and seller.
"Alternative investment" buyers may not always be well informed over
the original features of the MGV8 models and the details that affect their condition
rating. Many MGBGTV8s appearing on the market as Condition 1 cars in recent
months have modifications like replacement leather seats and trim. The price differential
between Condition 1 and Condition 2 MGBGTV8s continues to be substantial reflecting
the major refurbishment cost involved in bringing a Condition 2 car up to a Condition
Another feature has been the number of "Exceptional
or Concours" cars appearing for sale, some at eye watering prices. Inevitably
the pull factor on the pricing of good Condition 1 cars can be seen.
the next 9 months there are signs the classic car market covering MGV8s might
be levelling off for a while although exceptional cars will inevitably continue
to generate a great deal of interest for both existing and prospective MGV8 owners.
our detailed market review and price update report. More
the updated price tables as charts - simply click on the table to see the
our PriceWatch webpage with links to the regular reports of MGV8s seen advertised
for sale or at auctions by our PriceWatch team - Andy Goves and Keith Belcher.
chrome bumper 1972/74|
rubber bumper 1974/76
As the rolling 40 year road tax exemption benefit has seen
all the chrome bumper cars eligible for the relief and increasingly most of the
rubber bumper cars as well, the present value of the VED exemption (worth around
£1,950) has continued to lift chrome bumper prices and particularly rubber
bumper cars over the 9 months to May 2016. As a proportion of the value of a Condition
2 and 3 rubber bumper car the VED relief has been substantial so we have seen
rises there. As a percentage rise, the uplift on a Condition 1 car from the VED
exemption benefit has been less. As very nearly all MGBGTV8s are now covered
by the VED exemption we expect the rise in prices driven by that factor will
Prices of "Exceptional" chrome bumper MGBGTV8s have
continued to rise and a steady flow of cars offered as "Exceptional"
has been seen over the last 6 to 9 months. There are signs of investment demand
for exceptional rubber bumper cars is beginning to lift prices. An increasing
number of chrome bumper conversions of cars originally produced as rubber bumper
cars have appeared in adverts and potential buyers attracted by chrome bumpers
will need to inspect those cars very carefully as the quality of those conversions
can range from good "professional" to average or poor workmanship.
many knowledgeable buyers consider MGV8 pricing should reflect originality
but there are signs that, for example, the luxury of leather upholstery modifications
promoted in adverts is increasing the attraction of an MGBGTV8. The extent to
which the attraction of those modifications, or alternatively that of the originality,
influence a buyer's choice will inevitably be a personal matter.
updated MGBGTV8 price guide shows prices for a chrome bumper model have doubled
since our first guide in 2010 and rubber bumper models are now rising in value
An example of a high priced "Exceptional"
MGV8 was this RV8 advertised in February 2016.
February 2016 an early production RV8 in Le Mans Green with only 14,500 miles
appeared at "offers over £35,000".
RV8 Woodcote Green|
RV8 Other Colours
RV8 market review
A key feature of the RV8 market over the last nine months
has been the number of high priced "Exceptional" cars on offer - five
since February 2016 when an early production RV8 in Le Mans Green with only
14,500 miles appeared at "offers over £35,000" barely 12 months
after it had been sold at an H&H auction at Buxton in February 2015 for £21,736
(hammer price and buyer's premium), an astonishing uplift of 61%! See the
photo below. There are signs that price expectations of sellers, and particularly
"high end" traders with impressive showrooms, have risen as a consequence
of the pricing of those exceptional cars and we have seen some good Condition
1 cars priced as though they are nearly "Exceptional" grade examples.
Low and moderate mileage Condition 1 Woodcote Green reimports have attracted
considerable interest and our analysis suggests prices have risen by around 7%
over the last 9 months. At around £16,650 a Condition 1 RV8 in Woodcote
Green is remarkable value and it seems investors have seen that and it has
contributed to the demand in the market.
price differential between Japan spec RV8s (mainly reimported RV8s in Woodcote
Green) and RV8s in "Other Colours" (typically Nightfire Red and Oxford
Blue, but also the rarer colours) continues but there are signs that factor is
lessening as a slightly stronger growth in Woodcote Green demand and price
growth has been seen. The price differential was always odd as reimported
Japan spec cars had a higher specification with aircon as standard, but the popular
explanation was that as 64% of RV8 production was in Woodcote Green. The four
hundred or so cars in "Other Colours" were rarer, particularly a UK
spec example, and consequently more sought after. A factor with RV8s, particularly
reimports from Japan, is generally the mileage to date of many cars offered for
sale is low, often only 25,000 to 40,000 miles which for a car over 20 years
old is unusual. So the expectation of RV8 buyers is for a low mileage and although
pricing is driven by the condition of the car, it seems pricing also follows mileage
to some extent with low mileage examples attracting a premium.
combination of sales activity and the high pricing of "Exceptional"
RV8s has fired up interest in the model by classic car enthusiasts. Surely
the combination of the luxury of the trim, the vastly improved rust protection
of the bodyshell, the natural attraction of a soft top MG with a retro MGB appearance
and the smooth V8 power enhanced with modern fuel injection and engine management
systems makes the RV8 a very attractive classic sportscar. A surge in demand for
Condition 1 and 2 models seems likely over the next year. The RV8 was designed
and marketed by MG Rover as a luxury sportscar for the mature enthusiast who recalled
fondly the MGBs of their youth. It seems that profile of buyer is still likely
to be attracted to an RV8, particularly for someone with the idea of a classic
car as an "alternative investment". It would be an "investment"
that has a dividend as "fun" rather than a measly deposit interest rate
of 1 % or 1¼ % - on that basis you would be losing £208 a year in
interest for a great deal of fun plus the prospect of capital growth and no capital
gains tax on a vehicle either. Let's see how the next 12 months goes for the