New research indicates that classic cars can nearly double in value over ten years, making classic cars more valuable than gold or art.
Vanarama has analysed fifteen classic cars considered to be ‘affordable’ options at less than £15,000 per model. Their value was tracked over the last decade (between 2010 and 2020), drawing on data from Hagerty, a classic car specialist. What they discovered was perhaps surprising to many – that the average classic car increased in value by 97% during this time period.
This equates to an average increase of over £14,400 – nearly double the original value. Of those classic cars tracked during the time period, the most profitable model was the 1961 Volvo P1800 which increased in value by a massive 283% to £21,569.
Marketed as a touring car, this classic Volvo was manufactured between 1961 and 1973. The vehicle is famous for having been featured on the TV series The Saint, driven by the late Sir Roger Moore, who is best known for being a James Bond actor.
The average buying price for one of these vehicles is around £7,600, and this can rise to an average value of £29,180 after ten years.
Another notable car is the 1983 Land Rover Defender 110, which had a value of £29,161 after ten years. With a buying price of around £13,697, sellers could potentially make a profit of over £15,000 after a decade of ownership.
A favourite amongst car enthusiasts, the 1972 Volkswagen Beetle, came in at third place in terms of value. This model increased in value by more than double its original cost, making sellers a profit of over £10,000.
The year 1972 was a big one for Volkswagen, in which they sold their 15th million Beetle and continued development of the Super Beetle.
Coming in at fourth place was the 1968 Ford Mustang GT, a classic American car which increased in value by almost £10,000. One of these, which was driven by the actor Steeve McQueen was sold for a record $3,7 million at auction in 2020. Clearly, not every model will see for as much as that one did, but investors could still take home in excess of £24,000 on average.
With a buying price of just over £6,000, one of the cheapest cars on the list was the 1968 Datsun 510. This budget vehicle more than doubled in value over the ten year period, making sellers a profit on average of just over £8,000.
Commenting on the findings of the study, a spokesperson from Vanarama highlighted the potential opportunity for significant profits when investing in classic cars. They stated that ‘the top five cars in our research all gained more value over 10 years than traditional investments including precious metals, art, and property’.
They advised that the best way to make money from a classic car investment is to store the vehicle and keep it in top condition for a longer period of time.
When compared to more conventional investment options, classic cars come in at second place, just losing out to stock investments in terms of percentage value increases. While classic cars increase in value by 97% over ten years, stock investments rise to 107% of the original value during the same period.
When considered in comparison to other conventional investment options, classic cars are a clear winner. While gold values rise by 45%, art rises in value by 49%, and UK property increases its value by 50% on average over ten years.
With this in mind, it’s clear that classic cars more valuable than gold exist. So, why not consider investing in a classic car? It could bring you a nice return in ten years’ time.