Classic cars are a better investment than property. Over the last decade the chances are if you have purchased property in the right area at the right price you could be good to the tune of £100,000 and upwards. Nice earner some would say.
Classic cars have been one of the best-performing investments over the past decade, with an average returns over 450% as an average. Cars have outperformed watches, coins, stamps and art over the same period and as a result it has made several car collectors very rich. If you have wine in the cellar too then things are looking Rose.
10 years of spectacular growth sounds like an investment bubble but the industry still believes classic cars can still return on wise purchases and investments. The appetite for cars is strongest in the Americas and of course Europe but prices will rise further as more Eastern markets start to enjoy ownership and the status it brings.
Nothing is certain but if it has the story and the cult following then a classic may be born and then it could be worth a punt.
Some relatively modern vehicles have all the attributes to become a classic and I was happy to learn the Honda S2000 is one of them.Prices can go down as well as up, so buy a car that you really want and regard any rise in value as a bonus.
Another advantage in buying a car that you will drive is that it will be exempt from capital gains tax, which applies only to vehicles deemed to have been bought solely as an investment.
Below are a few that are potential winners:
Rolls-Royce Silver Shadow II -From its launch in 1977 this car was so in demand that for four years second-hand versions commanded a £6,000 premium over the £27,000 list price. If you find a good one you may have the potential to double your money.
Mazda MX-5 – It’s enough to make you feel old: the original MX-5 now qualifies as a classic. When it was launched in 1989 the simple, cheap, rear-wheel-drive roadster was a breath of fresh air — especially with the roof down. In an era with more electronics, regulations and complicated technology it stands out even more. Rust problems are making good examples rarer.
Honda S 2000 – The S 2000 is reliable, fun and has an engine that revs to 9000rpm. 2004 facelift onwards has better handling. Some of the best days driving were spent in my demo whilst with Derek Warwick
Jaguar E-type – Life doesn’t get much better than threading an E-type through the countryside on a bright summer’s day — especially if you’re making money while doing so. It might be the best-known Jaguar, with a timeless design, but it’s still affordable and tipped to rise over the coming years.
McLaren F1 – Money makes money and there’s no better example of this than the McLaren F1. If you have the cash, then the toughest task will be finding an owner willing to sell. But if you get into the centrally mounted driver’s seat now, Atkinson reckons you could be on course to almost treble your cash. “It’s the Ferrari 250 GTO of the digital generation,” he says
Ferrari 250 GTO – The 250 GTO has brought huge wealth to early buyers, as it has become known as the ultimate Ferrari. Only 36 were built between 1962 and 1964 and it had huge success in racing, while remaining road-legal.
So as part of your research visit the Goodwood Revival or the Owners Club Meets on the first Sunday of the month. Once you have chosen the metal Pinksauce can help you with funding and then let the market do its thing,We have a portfolio of specialist funders who cater for classic cars and high value assets.