Formerly reserved for a category of collectors, the passion for vintage cars has now extended to young executives. After restoration, an old vehicle can generate a capital gain varying between 20 and 25%. Reporting.
Classic cars have undeniable appeal, arouse admiration and do not go unnoticed. The passage of an old vehicle does not fail to provoke wonder or questions about its price, its current or initial owner, as well as its date of entry into service. There was a time when owning a classic car was the prerogative of the elite, of the wealthy or of a certain age, looking for something exclusive…or flashy. But things have changed over time. Collector cars are now of interest to everyone, regardless of profile, including the youngest. Rédouane Khallaf, restorer of old cars, notices that young executives, aged 25 to 35, find in car collections a real passion, appreciating their fashion side. They want to have fun and don’t necessarily buy cars to make money. In reality, they are not strictly speaking collectors, but rather occasional buyers, who keep the purchased model until another opportunity arises. And this is precisely what makes the market dynamic. Cars are more numerous and more available than before.
Attention, it should be noted that not all vintage cars can be considered collector cars. Strict criteria are defined, especially when importing. Rafik Lahlou, vice-president of the Moroccan Federation of Old Vehicles (FMVA), explains: “A vehicle can only be considered historic if it has marked history, if it belonged to a world-renowned personality, whether it has participated in events, whether it has been used in a film, or whether it is rare due to the limited number of models on the market”.
The first Mercedes, bought by a Sultan
It should be noted that Morocco has a rich history in the field of vintage vehicles, as explained by Luca Di Grazia, professional expert-evaluator of vehicles within the Royal Moroccan Federation of Vehicles
Veterans (FRMVE), an organization recognized on the international scene and member of FIVA (International Federation of Old Vehicles): “Sultan Hassan I acquired the first Mercedes ever produced, or rather a Daimler, which later gave birth to Mercedes, in 1892. This makes him the first Head of State in the world to own a car, as well as the first Moroccan driver. The entire royal family has then been customers of the German brand to this day.
Moreover, as Rédouane Khallaf points out, Moroccan collectors and enthusiasts have a predilection for German cars, with the Mercedes at the top of the list, as well as for American cars, such as the Ford Mustang, the Chevrolet Camaro or even old French cars, especially youngtimers like the Peugeot 205 GTI from the 1980s. Rafik Lahlou adds that English cars are also among the preferences of Moroccans, such as the MG Triumph, the Mini Austin or the Jaguar. It’s a fact, it is possible to make money with collectible cars. Indeed, the purchase, restoration and resale of such cars can generate significant capital gains, greater than those of any other financial investment. For example, a Renault 4 can be bought for a price between 5,000 and 15,000 DH, restored for around 35,000 DH on average, then resold for around 70,000 DH, which represents a profitability of 20,000 to 30,000 DH. Similarly, a Mercedes model 280 SE from the 1970s, considered a presidential car, required around 50,000 DH of work carried out by a market professional and was resold for 135,000 DH, whereas it had initially been acquired for 50,000 DH.
Same topo for a Land Rover which generated a margin of 40,000 DH, to one of our sources, for an investment of 50,000 DH and after deduction of the acquisition cost of 70,000 DH. In other words, the margins are comfortable.
There are many examples to illustrate this observation, and there is no price limit. Indeed, the more the models are historically significant, the more their value increases. For example, the Volkswagen Combi, which became famous as the Van of the hippies from the 1940s, was sold for 200,000 DH. After a restoration costing 90,000 DH and a similar initial investment, the vehicle generated a profit margin of 22%.
Doing the same is more rewarding
If we must consider an important element in this investment-pleasure, it is the restoration and its cost. Some vehicles require, for example, only the repair of the body, the brake system and the paint, while others require a complete disassembly, ranging from the mechanics to the engine, including the chassis, the electrical system and wiring, not to mention upholstery, seats and carpeting. In any case, it is crucial to restore the vehicle to an identical one, while preserving the aesthetics and design of the time. The time required to restore a classic car varies from 3 months to a year, depending on the extent of the work to be carried out. But how do you assess the price of a classic car, whether for purchase or resale? In reality, the transaction responds to the law of supply and demand, like any other market. “However, the closer the car gets to its original condition when delivered to its first owner, the higher its price,” Di Grazia points out.
The exact number of classic cars present in Morocco remains unknown, but according to professionals in the sector, there would be more than 400. The craze for these vehicles is constantly increasing in the country, as evidenced by the many events organized, such as the Dakhla-Guergarat rally or the Morocco Classic rally. In addition, a private museum dedicated to vintage cars will open its doors in Bouskoura next June. The collection will include vehicles dating from the 1920s.
2.5% customs clearance in case of import
Classic cars found in Morocco can be bought locally or imported, mainly from the United States, France, Italy, England and China. To import such vehicles, it is necessary to have an approved garage beforehand. However, Moroccans residing abroad (MRE), as individuals, can import old cars. A vehicle is considered historic in the eyes of the Moroccan Administration when it is over 60 years old and meets the criteria mentioned above. Customs duties for importing a historic car amount to 2.5% of its value, instead of 17.5% for a more recent car, in addition to VAT
of 20%.
Before importing a classic car, it is essential to consult the Moroccan Federation of Old Vehicles to determine whether the car is considered historic or not. The federation issues a certificate proving that the vehicle is a collector’s item.