With the kids now back at school and the perils of Brexit an ever-fading memory, the used Porsche market has awoken from its traditional August hiatus. We’ve seen a lift in sales through September, with a good mix of enquiries for all models, but especially the classics.

Sotheby’s recent London sale was a timely reminder of just how much strength still exists in the world of classic cars as collectable investments. Sotheby’s recorded almost £22 million at this event and while classic Aston Martins and Ferraris enjoyed some very high results, prices for rare Porsche metal also raised a few eyebrows.

We’ve all heard the stories of 993 GT2 models selling for seven-figure sums behind closed doors, but as these rare cars are seldom seen at auction, it’s not been easy to gauge how high the numbers could go for the finest examples. Wonder no more, as a 12k-kilometre 993 GT2 in sublime Riviera Blue sold for £1.8 million: more than a million pounds over its top estimate with fees included.

Other Porsches sold on the night, but the knock-on effect of this single sale should not be underestimated. While some Porsche prices have fallen since the heady days of 2014, the rarest air-cooled models retain a core following. JZM has sold a number of rare air-cooled cars through 2016 and sold a few more in the days after the Sotheby’s sale, including a beautiful 993 RS in rare Midnight Blue and a very low mileage RHD Gloss Black 930.

We do not equate these results with a shift in the market, as both air- and water-cooled Porsches are still in demand. We’ve sold a number of Gen I & Gen II GT3s since our last newsletter, as well as our unregistered RHD Cayman GT4 and a very competitively priced LHD 991 GT3 RS in Lava Orange. But the strongest interest amongst investors is for rare-breed air-cooled at sensible prices.

Amongst later water-cooled cars, it is still a surprise to see so many 991 GT3 RSs priced well into the £250k bracket. Realigned prices on 997 GT3 and RS models have re-established these cars as great value against recent incarnations, so no surprise to sell a few 997s of late. That said, a well priced 991 GT3 is a fine sports car and incredible fun when tuned for fast road and track here at JZM. We sold our newest RHD 991 GT3 last week and our bargain LHD example is also expected to find a new home pretty sharpish.

Finally, a word of caution for those sellers who believe they are also entitled to a share of expected appreciation in the years ahead, and set their asking price in excess of the trade’s best advice. We say keep your expectations in check. If you want to sell, then advertise your Porsche at market rates or expect it to hang around. Buyers are super cautious right now and very few cars attract interest when priced well ahead of the market.

The vote to leave the EU and its seismic effects across UK politics continues to dominate the news. With so much still to play out in the process to disentangle the UK from the European Union, it will be a while before the immediate economic effects fade completely, but we have seen some UK buyers returning to the Porsche market this month.

Everyone has their own relationship with the Porsche brand, but most people regard their Porsches as a blend of transport, hobby and investment, with the percentage of each ingredient the main differentiating factor. This gives independent Porsche retailers a range of stock and marketing options, which can be fine tuned to suit economic conditions.

In the immediate aftermath of Brexit, we saw a distinct lift in investment buyers, especially from overseas, as the changes in exchange rates offered opportunities to save at least ten percent on collectible Porsches for pension fund purposes. Most of these buyers have a range of investment items in their pension portfolios and classic cars are just one of them, so they have a very long term view of the market.

The weakness in Sterling is not expected to last indefinitely, so investors are taking advantage of the current situation, buoyed by their own economic predictions. We expect this trend to continue, with interest in top condition, low mileage air-cooled, GT and special edition models, but only when they are priced to sell. Investment success depends entirely on buying well at the start and these long term buyers are under no pressure.

As a new Prime Minister moved in to Downing Street and the public became increasingly comfortable with the idea that life might continue as normal, those looking at Porsches from a hobby perspective also began to return to the market. Hobby buyers are concerned with investment potential but, unlike pure investment buyers, they intend to use their cars. Typical enquiries from hobby buyers revolve around the potential future stars of the Porsche world, such as Carrera S/GTS, and Turbo/Turbo S, particularly with manual transmissions, as these are set to become increasingly rare items on future Porsche models. Sensible mileage and top condition remain important, but price is always the key.

Finally we have those who buy Porsches primarily as daily transport. The most recent new car registration data shows a sharp downturn in UK sales versus previous months, which industry bodies ascribe mainly to Brexit. There is strong evidence suggesting that companies will be holding off on investment until the economic future becomes clearer, so new and nearly new car sales may well be expected to suffer.

This hands the advantage back to independent used car retailers, as slowing sales at franchised dealer level will lead to overstocking. Packed forecourts encourage dealer groups to send long-stayers to auction, which drives dealer stock down the supply chain. While Panamera and Cayenne tend to be harder work to sell used, we expect the eventual arrival of Macan into the independent retail channels to be very good news for JZM Porsche, as our retail margins are sensible and our cheaper servicing prices offer much better value for money. Watch this space!

With Brexit and UEFA 2016 distracting consumers, it’s not too surprising that sales have been slower than usual. The overall lack of summer sunshine is also a bit of a downer, but nevertheless, JZM found new homes for a number for Porsches last month.

“Repricing our stock to boost consumer confidence in our market awareness certainly helped to increase showroom footfall, and led to sales,” says Russ Rosenthal, JZM Sales Director. “Price is less of an issue on the rarest Porsche cars, so our policy to stock only the very best examples that need no excuses was another strong factor in recent deals.”

Interest continues in Gen II 997, and all 997 Turbo and Turbo S models. JZM has sold four 997 Turbos in the past four weeks, and is currently looking for more. Rare air-cooled Porsche continues to register interest, with a fine RHD Maritime Blue 964 Turbo (below) bringing many enquiries within a few hours of arrival at JZM HQ. Air-cooled RS has cooled since the 2014 peak, but there are still enquiries coming through for well-priced RHD cars.

“Sales are a mixture of right car, right time, right price,” says Russ. “But dealers must also give buyers the time to decide. With fifty stunning Porsches displayed under cover in our showroom, those new to Porsche can take their time and enjoy the JZM ambience, while getting their heads around the various models. For those more familiar with Porsche, we hold stock of classics and the very latest models, including delivery mileage examples of Cayman GT4 and RHD 991 GT3 RS. Our newest 991 GT3 RS (below) is the cheapest RS on the market by a substantial margin, proving how hard we work in pricing to sell.”

Price is a factor in all sales discussions, but buyers must not mistakenly assume that all Porsche prices are sliding. Classics such as the 930 Turbo and new cars like the Boxster Spyder sell quickly due to low supply and the UK price is not the only concern.

“Brexit is already affecting exchange rates, with Sterling getting cheaper for overseas buyers,’ says Russ. “As JZM deals in both left- and right-hand drive Porsches, and is happy to help with export sales, it will be interesting to see how foreign buyers react to potentially lower prices in the weeks leading up to referendum day.”