08 October, 2014
Classic car owners throughout the country are sitting on a small goldmine; according to the broadcaster of the Wheeler Dealers TV show.
The Discovery Channel's hit programme has this week reported on a jaw-dropping boom in the value of many of our most cherished vintage vehicles.
Huge mark-ups
As if the sheer exhilaration of driving a Porsche 911 isn't enough, the Carrera RS 2.7's investment potential is proving as high-performing as its souped-up engine.
The sleek model actually tops the table of best auto-investments of the past 10 years.
So how much profit could you net if you purchased the 1973 Porsche classic back in 2004?
Well, make sure you're sitting down with a large drink to hand.
Because if you'd ploughed your £65,000 into this German beauty a decade ago - you'd now be looking to sell it for a profit of 669% - for a cool £500,000. Remarkable.
Wheeler Dealers' best car investments 2004-14
The October 6th edition of Wheeler Dealers monitored the price rises of 20 most coveted classic and best-known cars.
- Porsche 911 Carrera RS 2.7 (669% rise)
- Aston Martin DB5 (500%)
- Aston Martin DB6 (478%)
The AC Cobra (333%), Ferrari, Lotus and Jaguar models all also feature in the top 10.
The inclusion of the Aston Martins is no big surprise, with their iconic and perennial James Bond link.
More surprising, perhaps, is the appearance of Land Rover's Series I occupying the table's higher echelons - jumping 233% from £6,000 to £20,000 over the 10 years.
This makes it the study's greatest-performing investment among mass-produced vehicles.
It's bad news for Rolls-Royce owners, however. If you possess a Silver Shadow its value has actually been shaved by a third; from £12,000 in 2004 to £8,000 today.
Let’s compare
OK, it's all very well saying that classic cars are great investments. But you can't really gauge their real performance unless comparing with how other, more conventional investments have fared over the same time span.
But first, it should be stated that inflation has increased by nearly 38% over the decade.
So £1,000 in 2004 would be worth £1,379.70 today.
- Despite a great start to this time period, and the housing market's recent resurgence, property investment hasn't had its greatest decade.
Investors will only have seen average returns of 15% in this time. The typical UK home cost £186,478 in 2004, compared to £214,450 this year, according to the Halifax.
- Gold investors have seen a 181% rise in their investment over the period. The price has jumped from 425 dollars per ounce in October 2004 to 1,195 dollars per ounce this week, according to Kitco precious metals data site.
- The same site reveals a 139% growth in the price of silver. This has risen from 7.1 dollars per ounce in October 2004 to 17 dollars per ounce this week.
So it seems that many classic cars are greatly outperforming traditionally "safe" investment bets.
The Discovery Channel is in no doubt. Historic car owners are sitting upon "small fortunes", a spokesman says.
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