THE ECONOMIC AND ENVIRONMENTAL IMPACT OF THE HISTORIC AND CLASSIC MOTOR INDUSTRY IN THE UK

37 5.5 Costs of ownership Even outside of purchasing or renting a classic vehicle, significant costs are associated with the ownership of classic vehicles. These include the costs of maintenance and repair (discussed in a separate section in the following chapter), insurance, storage and fuel. For much of this analysis we are reliant as a starting point on excellent survey-based data from the FBHVC on the costs of classic vehicle ownership. Overall, we estimate that over £5 billion was spent by classic vehicle owners in 2019 on these items , generating nearly £1.4 billion in GVA contributions. Specifically, within this section we consider the economic impact of four sub-industries associated with some of the major ownership cost drivers, outside of repair and maintenance. These sub-industries are: • Vehicle storage facilities; • Vehicle insurance; • Automotive fuel retailers; and • Vehicle transport services. By considering the costs of ownership per the FBHVC survey, and extrapolating the costs per vehicle to our estimate for the number of classic vehicles per Sectio n 4 , we can estimate the spend associated with classic vehicles, attributable to the four categories above. Specifically, we estimate the following annual expenditure associated with classic vehicles in each category: • £1.08 billion on vehicle insurance; • £0.73 billion on fuel; • £0.14 billion at vehicle storage facilities; and • £0.07 billion on v ehicle transport services. From these expenditure estimates, and wider industry- level data per the ONS’ Annual Business Survey, we can estimate the full set of direct economic impacts associated with the spending. Combined, over 4,500 FTE jobs are supporte d by this spending, and nearly £500 million per annum in GVA is generated. Driven by the high expenditure estimates, insurance creates the greatest economic impact by each metric. The full results can be seen below i n Table 12. Table 12: Economic impact of spending by classic vehicle owners in key subindustries, 2019 Revenue (£m) GVA (£m) Employment (FTEs) COE (£m) Vehicle insurance 1,081 319 1,989 114 Vehicle storage facilities 136 76 1,007 46 Automotive fuel retailers 730 49 905 21 Vehicle transport services 70 33 624 18 Total 2,017 476 4,524 199 Source: FBHVC, DVLA, ONS, Cebr analysis