Everyone loves a classic car. I mean, even people with no interest in motoring love the surprise sight of a classic car on the weekend or at shows or fetes. Owning a classic car is a labour of love or course, but what about the concept of purchasing a classic car as an investment? If you are thinking of investing some of your earnings in a classic vehicle there are a few thinks to be aware of…
Continued Growth on Investment?
The prices of collectable cars has started to decline after steady growth for 10 years or more. That said the downturn between 2015 and 2018 is almost certainly a blip and prices over the last 13 years or so have increased by well 0ver 300%.
Of course this slight drop in prices means that there are more opportunities to buy classic cars – and as you can see from the graphic above, cars have out performed all other standard luxury investments
The very top end of the market continues to be hugely profitable with Porsche 911s doing particularly well. In 2015, an Aston Martin DBR1 sold for $22.5 million dollars and 5 Ferraris each sold for more than $5 million. Jaguars, particularly E-Types are always considered a great investment.
When it comes to the lower end of the market our advice is to think of originality and what sets the car apart from its competitors. Here are a few vehicles (courtesy of Lexham Insurance that are ideal as they don’t exist in modern forms:
- Toyota Supra
- Nissan Skyline
- Honda NSX – all popular due to the ‘Fast and Furious’ film franchise.
- Peugeot 205gti – a simple car with a great driving feel.
Brexit (there, we’ve said it…)
Of course the ‘B’ word looms on the horizon, and no one can predict how it will affect this (or any other market). However, should it involve any form of economic downturn – resulting in people having less money to spend – this can often have a contradictory effect on what one would normally expect. In recessions for example, there is normally an upsurge in people investing in gold and other assets, which retain their value. It is likely that this will also be the case with the classic car market too.