For example, wealthy Japanese buyers couldn't buy enough Ferraris in the second half of the s and prices saw an unbelievable spike and then a bubble. When the Japanese stopped buying those prices dropped by a big percentage. Buy quality a prime example will always be marketable and command a premium , know your demographic and market factors, and make sure you're not buying while in bubble territory.
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Your Money. Personal Finance. Your Practice. Popular Courses. Investing Alternative Investments. Table of Contents Expand. The Market for Classic Cars. What Makes a Car Collectible. Car Investing Risks. Affordable Options? Not Really. The Bottom Line. Key Takeaways For the automotive enthusiast, one way to diversify an investment portfolio is to start collecting classic cars. Most cars lose value immediately after they are driven off of the dealer lot, but classic cars gain in value over time, due to rarity, performance, or special attributes.
Even with people beginning to cotton onto the bargain, this Japanese sports car is still undervalued. Follow Us. Published 09 December By Kieran Ahuja. Ford Focus Mk. Toyota MR2 Mk. Trending on Social. Are these the 15 ugliest cars ever made?
When considering making an investment, it's unlikely your first thought would be browsing for a 'classic' car. However, if you're able to net one in good condition — from more modern classics like the Volkswagen Golf GTI to true icons like the Ford Mustang — it could actually be a smarter move if you're looking for an asset that'll earn you a few quid in the years to come.
We scoured top lists from industry experts to collate a rundown of the top affordable classic cars — those you could pick up for the average price of a second-hand motor— and find out how much you could make by leaving them to appreciate in the garage. Before we continue it's important to note that these values as with all investments are subject to change and there is always a risk involved.
Please make sure you do your research and seek professional financial advice before giving it a go yourself. To do this — and illustrate the potential profit to be made — we looked at pricing via Hagerty, spanning to show how a decade's demand can affect the average cost of a selection of affordable classic cars. Their pricing considers:. So, they're very thorough! With that in mind, here's how the top 10 stacked up.
Now that we've looked at how much money you could potentially make if you invest in the right vehicle, it's worth investigating how classic cars stack up alongside more traditional investment methods.
Cars that meet all these criteria come with a price tag. And it is important to know that the purchase price is not the only factor to consider, because this kind of acquisition is tied to a considerable amount of follow-up costs.
The condition of the car must be maintained or — if weaknesses are identified — improved. Cars have to be driven, otherwise damages will ensue.
All of these factors translate into regular expenses for maintenance, conservation, garage rental and insurance. These are delightful hobby cars that result in the loss of very little money if an honest calculation is made. So the rule is to look for distinct models of established companies that were manufactured in limited numbers — anyone who parked a Group B car, which were limited to a production number of , in their garage twenty years ago, did well.
Brands such as Porsche, Ferrari and Aston Martin have implemented this insight in the form of limited editions which — if you have enough financial clout to buy one — can increase in value within a few years. And so the same applies here: always buy the best that you can afford. However, there is another way to invest in a car that will increase in value, a way that entails virtually no risk: go to one of the cult automobile brands or, for example, to the Carrozzeria Zagato or Touring Superleggera, and commission a custom-made car.
Manufacturers such as Aston Martin, Ferrari, Lamborghini, Rolls-Royce and Bentley are happy to offer this admittedly expensive possibility, because these unique specimens bring fame and honor to both the manufacturer and its proud owner — and always attract buyers. Is there such a thing as a car that is worth its weight in gold? The answer is yes, if you are willing to invest a lot of money and have knowledgeable advisors. For most of us, however, collector cars are fun vehicles to be used to enjoy good times.
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