With bank accounts rarely offering interest rates of greater than 1 per cent, many of us are turning to other places to place our money in the hopes of a healthier return.
Some savvy savers have turned to stocks and shares to attempt to increase their nest egg or recover from a pandemic that broke many of our bank balances.
However, the risk of placing bets with our money can feel too great for several potential investors. The classic car market has continued to boom during the pandemic, unlike so many other industries. A surge in spare time for enthusiasts and collectors alike has increased the demand for older cars and their parts.
This surge in interest has resulted in an exciting opportunity to indulge a fantasy of owning a classic car which is projected to increase in value far faster than your run-of-the-mill savings account.
While we often think of classic car collecting as a costly endeavour, some of these vintage vehicles can be purchased for less than £10,000 making them affordable classic car investments – Take a look at them here.
Porsche Boxter (986)
Year: 1996 – 2004
Deemed the “poor man’s Porsche” when it was released 25 years ago, the 986 is known as the one that people buy when they cannot afford a 911. However, don’t be fooled by this unsavoury title; this car’s value has increased by 4 per cent since last year.
It’s remained on sale for the last four generations and has an average value of £8,250, up £350 from last year. Values continue to climb, and experts recommend purchasing now in anticipation of a continued surge.
Ford Sierra 1600
Year: 1982 – 1993
This super-sleek aerodynamic family car was way ahead of its time when it arrived in the early ’80s. Created by Uwe Bahnsen, the creator of the Capri MkI, MkII and Escort MkIII, it was surprisingly popular. The RS500 Cosworth editions sell for over £100,000 but, don’t worry; you can still make a little pocket money off the 1600 five-door version. Good-quality Sierras may be “exceptionally rare”, but they have increased by eight per cent in the last year and can be picked up for under £4000
Rover SD1 2300
Year: 1977 – 1986
A doppelganger for the Ferrari Daytona, you may immediately think of the police force when you think of the SD1. Used in The New Avengers and The Professionals, this 6-cylinder 2300 is an excellent opportunity to buy an investment vehicle for less than £5000. Values have increased by nine per cent since last year.
Year: 1975 – 1981
With average sale prices rising by almost £1000 in the last year, the TR7 is definitely one to keep your eye on. The wedge shape, pop-up headlights and plastic dashboard left the TR6’s oval headlamps and wood interior in the dust.
Having somewhere dry to store this vintage vehicle is a significant benefit as former owners will attest to rust and oil pressure issues. However, if you’re looking for a good investment, John Mayhead of Hagerty says, “Immediately recognisable, values of this British wedge sports car have been rising for the past two years.”
Jaguar XJ6 S1 2.8L
Year: 1968 – 1973
With the most significant increase in value of almost 20%, the XJ6 offers the greatest return on your list.
This car first went into production over fifty years ago and still provides a beautiful drive for the classic car collector and investor alike. This six-cylinder beauty can still be bought for under £6500, although that’s an increase of £1000 from last years’ value of £5,250.
It is clear to see that buying a classic car as an investment is potentially more attainable than you may have imagined. Are you tempted by any of these affordable classic car investments? Take a look at our classic cars for sale here.