The South African classic car market is thriving, with a strong trend toward collecting rare and historically significant local models, largely led by an emerging group of enthusiasts aged 30-40, known as the “youngtimer” demographic.
“These are individuals drawn to cars from the 1980s, 1990s, and early 2000s; vehicles they grew up with or that their parents drove. The old box-shaped BMW 325is, for example, is one of the most iconic young timers in South Africa. It is not just about rarity; it is about memory,” says Sesh Govender, Underwriting Specialist for iTOO Classic Cars.
“This kind of idealism fuels the popularity of classic cars. Much like dreaming of a career, a luxury watch, or a rare collectable, owning a classic car taps into nostalgia and personal milestones. It is an investment, but one deeply rooted in emotional value.”
The box-shaped BMW, for example, has become iconic, not just for its historic value, but for the cultural energy it carries. In many South African townships, it is associated with drifting, spinning and street-side fun. It is a car that people grew up seeing, hearing and admiring. That emotional imprint has stuck. For many, it is not just a vehicle; it is a symbol of aspiration and identity.
Classic cars are typically defined as vehicles 20 years or older. That means even a 2005 model now qualifies. While it may feel strange to call a car made in 2005 a “classic”, the market is shifting, and so is the definition. Another way to define a classic is by value appreciation. If a car sold for R100 000 in 2005 and is now worth R150 000, it is considered a classic because it has surpassed its original sale value.
“Classic car collecting is often seen as a sound investment. But unlike traditional assets, these vehicles carry emotional weight. That is especially evident in how owners approach insurance and restoration,” explains Govender.
“In the broader motor industry, vehicles are quickly written off and replaced. But in the classic car community, restoration is the preferred route, even when costs exceed market value. Around 90% of clients opt to restore rather than write off, because the car represents more than just transport; it is a legacy.”
Another key trend in this market segment is the shift toward online sales of classic vehicles, notably accelerated by the COVID-19 pandemic. Collectors, especially those with a passion for specific makes and models, are constantly on the lookout for these vehicles, and the internet provides the ideal platform.
“If you are into Jaguars, for example, you might set up Google Alerts or regularly check niche dealer websites. Since these cars are rare, you would monitor listings closely. If an E-Type or F-Type pops up, you would reach out immediately, request photos and ask for its history. More often than not, buyers commit without ever seeing the car in person. It’s similar to an online shopping experience, but with much narrower parameters,” says Govender.
At the same time, classic car auctions are gaining popularity, often driven by sellers with inherited collections. In many cases, people inherit vehicles from their parents who were passionate collectors, but they do not know how to maintain or preserve them.
Given the significant amounts of money that collectors often spend on classic cars, classic car insurance is a crucial safety net to protect this investment. This type of insurance goes beyond standard coverage and is designed to preserve vehicles that carry emotional and historical significance.
“These are not just cars; they are investments, heirlooms and symbols of identity. Unlike everyday vehicles that lose value over time, classic cars often appreciate. That is why policies are structured to reflect this growth. Insurers recommend revaluing vehicles every 24 months to ensure coverage keeps pace with market trends and restoration investments, says Govender. “When a new valuation is submitted, the policy is automatically adjusted, ensuring that the vehicle remains properly protected as its value increases. Ultimately, classic car insurance is about more than risk management. It is about understanding the collector’s mindset: the nostalgia, the pride, the craftsmanship and the emotional connection.”