Investing in Classic Cars
25 September, 2013
For many people, collecting valuable assets and objects combines both a hobby and a sensible investment. Some may collect stamps, others will acquire artwork but recently a new favourite has emerged. Investing in classic cars has become a popular practice over the last decade, as more and more cars continue to increase in value.
The Knight Frank Luxury Index now lists classic cars against other investments such as gold, art, jewellery and watches, demonstrating that they are a tangible asset and an attractive prospect for luxury investors.
Driving up prices across the board
The Guardian reports that in the last year alone, vintage Ferraris have risen in value by 55%, and Classic Mercedes Benzes by 25%. Considering their overall value, these numbers account for quite a lot of cash which has raised quite a few eyebrows for luxury asset investors.
It’s not just the top-line cars that are doing well – Classic vehicles across the board are seeing huge increases in their value; even mass produced sports cars such as E Type Jags can bring high prices to their owners, fetching up to £80,000.
Availability can also affect the value of a vehicle. At the end of this year, VW camper vans will officially be out of production when Brazil (the last country to make them) stops manufacture following new safety laws. This of course will increase the value of those out in the wild, so VW enthusiasts might want to grab one at normal prices while they still can!
More than monetary value
For many people, their classic cars are a labour of love. Enthusiasts can find themselves a beat up old vintage model and do it up in their own garages, restoring it to former glory which raises their value as a welcome by-product.
Of course, not everyone buys classic cars to sell again in the future; for many people, the fact that their pride and joy continues to accumulate value is a welcome bonus. For classic car enthusiasts, the real value lies in the ownership and continued restoration, not to mention going to classic car events to meet with fellow fans.
However, the fact remains that classic cars are now a sound investment. so whether you have a vintage automobile as a passion or an asset, getting comprehensive classic car insurance to protect your vehicle should be a priority.