'Bidding frenzy' for classic Aussie cars

A recent auction has proved that for those who know their Australian classics, the right car can offer a great return on investment.

Fords from the 1970s were the top sellers at a recent auction, with a 1978 XC Cobra attracting the highest price of $194,000.

A 1970 Ford Falcon XW GT ($183,000), 1977 Ford Falcon XC Fairmont Coupe ($170,000) and a 1972 Ford Falcon XA GT Hardtop ($131,000) rounded out the highest earners.

Buying new, drivers in the '70s could expect to pay under $10,000 for the Cobra and just $3800 for the Falcon XW GT.

"We are used to seeing strong demand for classic Australian cars but we've never seen anything like this," Grays CEO Chris Corbin said.

"Clearance rates have never been higher and we don't foresee demand or prices falling in the near future."

A 1963 Holden EJ Taxi was a relative bargain with a sale price of $45,000.

The auction saw 330 vehicles go under the virtual hammer in one of Grays biggest auctions for classic cars.

It has reported demand outstripping supply since the onset of the pandemic with large numbers of bidders looking for classic Australian cars.

Moody's Analytics has also found prices for second-hand vehicles have jumped up to 35 per cent in the past year with a surge driven by the limited supply of new cars, fewer trade-ins and increased demand.