Many people have opted to look at alternative forms of investment with uncertainties around pensions over the last few years. The annual Frank Knight wealth report lists the ‘objects of desire’ and demonstrates specific sectors’ growth.
Classic cars are included in this report demonstrating their investment potential. The highlight in the 2020 report was a 1994 McLaren F1 LM spec supercar. Which set a record for the model when it was auctioned by RM Sotheby’s at the Monterey sales in August 2019 for US$19.8 million.
Analysis by Vanarama and Hagerty Insurance has found that classic cars’ value has increased by 97% in just ten years. When you compare this to gold, which rose by only 45% in the same period, and property, which saw a 50% rise in the same ten years, it’s clear that classic cars could be a very sound investment indeed, especially with some models facing extinction.
We take a look at some of the best performers below:
My dream car, the Volvo p1800, was worth £7,611 back in 2010; by 2013, they were worth around £11,896, and today, you can expect to pay just over £29,000, which is a staggering 283% increase in value! This car was made famous in 60s TV show The Saint. The Saint was played by none other than Roger Moore, making this pairing a mere step down for enthusiasts than 007 and his Aston Martin’s.
The ever-popular Volkswagen Beetle has seen an increase in value. A 1972 model has seen a rise of around 157 per cent since 2010, which equates to approximately £10,000 in monetary terms. The Beetle is popular among classic car enthusiasts. Easy to work on with a lovable design, they have a firm following.
A 1981 Mazda RX-7 is a close competitor to the Volvo, having realised a colossal 239% increase in value over the last decade, making it a sound investment. The reason for this rise is likely to be simple supply and demand. Many of these cars were met their demise, either in accidents or because they became too expensive to repair. They have a Wankel rotary engine, unlike most vehicles on the road, which results in specialist care being required.
Looking for something a bit more rugged? A 1983 Land Rover Defender 110 could be just the ticket. This off-roader has increased in value by around 99% over the last decade. The Land Rover Defender as we know and love it was killed off by the manufacturer and dragged into the 21st century, much to the disgust of many enthusiasts who enjoyed the classic, no-nonsense design which had only had minor design tweaks over the decades.
Mustangs have always been a firm favourite, so it’s unsurprising to have one grace this list. A 1968 GT Mustang has seen a 67% increase in value during the last ten years.
Of course, as with any investment, it’s important to remember that prices can go down as well as up. So, our top tips for buying a classic car are as follows:
- Buy something you love – this way if prices fall, you will still be pleased with your investment.
- Buy a car with history. Buyers love to hear and see the history, which includes paperwork, receipts, documents and any stories that can make the vehicle more appealing.
- Keep detailed records of everything you do on the car.
- Keep it original, buyers like an original car, this helps the car hold or increase its value.
- Matching numbers are desirable. Check the main parts are original and know what you are buying. A car may have had parts changed, so make sure you know what you’re buying before taking the plunge. This way, you can weight up the pros and cons.
- Maintain and look after your classic, make sure you take it out on the road to enjoy it, take it to shows and store it in optimum conditions while not being used.