Classic car investments
Whilst the modern motoring industry is facing pretty gruelling times, with cars stockpiling at various ports around the UK, it would seem, the classic car market remains buoyant.
The biggest problem that faces a modern car is that its value falls by around 40% the minute you drive it off the garage forecourt. That simply doesn’t happen with a classic car because it’s already been through price fluctuations in the early years of its life. It also has the added benefit of being tax exempt.
In fact, there are several reasons why, in these recession hit times, classics are still big business. At the premium end of the market, people are spending large amounts on prestige cars as a pure from of investment. It’s recently been reported that a 1955 Jaguar D-Type sold for a jaw-dropping £2.2 million – an amount that saw its value more than double in only two years.
Nostalgia is another driving factor when it comes to investing in a classic car. A lot of schoolboys, who had motor racing heroes in the 60’s, and dreams of taking the chequered flag themselves, have now grown up and accrued some serious spending power. A prime example being the purchase of a genuine Mini Cooper S rally car, which was sold for £10,500 through Bonham’s in recent times.
But you don’t have to part with double figures to find yourself a cracking little classic. For as little as £3,000 you can be the proud owner of a piece of motoring history. The general consensus is that the novice classic car investor should choose to invest in a marque that has a reputable and expansive owners’ club – such the MG or the even the Ford Capri.
But let’s be realistic, a classic is never going to be a guaranteed investment. Its value will depend on market fluctuations and good judgement (as well as good luck). Although, in general, if a car caused a sensation when it was first launched and sold well, then it’s highly likely to become a collectible in years to come.
With classic car ownership topping the two million mark in the UK, it certainly seems people are more than happy to invest in motoring nostalgia – even if they simply leave it under dust sheet, locked up in a garage.