A famous quote by oil tycoon JP Getty says;
“If it appreciates, buy it. If it depreciates, lease it.”
You see, for many, the problem with buying a new car is just how much it depreciates by. You can buy a car and drive it out of the showroom bring it back 100 miles later and it’s already lost a chunk of its value. This is probably why PCP and PCH are a popular choice for many these days, allowing them to lease the car and get a new one every few years.
A trend that started around thirty years ago was ‘Bangernomics’ which is the idea that you can buy a ‘banger’ and run it almost depreciation free, making repairs yourself as and when they are needed. Many modern cars, are, however, fairly difficult to work on at home due to the amount of technical and complicated components and computer systems. More modern classics, however, lend themselves very well to this concept.
Her at Classic Cars and Campers, we actually believe you can take this notion further, buying a modern-day classic which could actually become an investment piece. Back in 2009, the government’s scrappage scheme say huge numbers of everyday vehicles taken off the road and scrapped which means that cars that were once a common sight on the roads of Britain such as the Vauxhall Cavalier, Peugeot 406, Renault 19, Rover 220 and many more are becoming extremely rare, which is a shame for our heritage really.
Finding one of these cars for a low sum, could, therefore, provide you with an investment opportunity as these models become scarce and desirable, not only providing you with depreciation free motoring but also, possibly, providing you with a profit in years to come.
Classic cars bring back memories for many, a nostalgia of their youth. Watching the dramatization of ITV recently ‘Des’ demonstrated the need to keep these classic cars alive, set in 1983, the TV show had numerous classic vehicles from the late 70s and early 80s to accurately set the scene and transport viewers back to the time.
There are many low mileage examples of modern-day classic lurking in garages across the country, owned by the older generations to take them to the shop once a week, they are the ideal investment piece.
This 19-year-old Volkswagen Polo is currently listed on our website for £3,695 with only 13.5k miles on the clock. Where else could you find such a low mileage car, in beautiful condition for this price? A quick scour around the internet shows a 10-year-old model for a similar price with 90k miles on the clock and it still has years of depreciation left in it.
This 1985 Vauxhall Cavalier L in full factory original condition was the inspiration for this article. With 29,992 miles on the clock, the same money could buy you a run of the mill modern-day alternative in the guise of a 2013 Vauxhall Insignia with 46k on the clock. Yes, it has the mod-cons, but the roads are full of them and depreciation is rife. If you have somewhere to store a classic then the Cavalier is a far better investment.
Owning a classic car sets you apart from the crowd, it sparks conversations, you can work on them yourselves and take price in driving them, earning smiles galore on every trip from passers-by. With pensions feeling so insecure many people are looking for alternative nest eggs, and a classic car could just be it. Many classic owners see themselves as a custodian, preserving something for future generations – could you gain enjoyment and possibly profit investing in classics? You can start your search for a classic car on our website.
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