Is the Bottom About to Fall Out of the Classic Car Market?
Recent findings by Historic Automobile Group International (HAGI) concluded that investments in some classic cars grew at 20% during the past year, thus out-performing other investment possibilities. For example, the price of gold rose by just 10%.
So we can now say with some accuracy that classic cars are worth their weight in gold – or some of them are!
For example, the price of the Aston Martin DB5 (dating from 1963 to 1965) has seen a rise from around £325,000 to £400,000 , depending on the quality of the car.
The last time classic car prices were as interesting to investors was during the 1980″s. This was during a time when people had more cash to spend, and classic car auctions became an interesting place to spend money.
This boom was famously followed by the slump of the 1990″s. This slump was caused by the over-elevated classic car prices coming out of the 1980″s, coupled with the onset of recession.
However, the current rise in value comes at a time of completely different economic conditions to the 1980″s boom. The lack of appeal of more conventional investment, including property, has sparked new levels of interest in classic cars. Not only has these seen a renewed level of interest in classic cars, but also in vintage wines and antiques.
So is this a return to the good old days for the classic car market?
It is true to say that after a rise comes a fall. It”s just a question of when. Although, some predict that this may be later rather than sooner, as the classic car market in countries such as China and India has still significant room to grow.
For the moment investments should be made with caution.
Not all types of classic cars will yield such healthy returns. It”s also true to say that a car which has performed well in the past, might not yield the same returns in the future.
We should also bear in mind that many of the more interesting deals are negotiated behind close doors, and situations like this are not accessible to all of us.
The majority of online casinos people who make money from classic car investments tend to be knowledgeble enthusiasts and collectors. They know what they are doing and can take on such investments with more confidence.
For those of us that don”t have that level of knowledge, perhaps it would be more sensible to stick to conventional investments.
With this in mind, the advice is to do your research, look out for models with low production and low mileage opportunities. As part of the investment, make sure that you consider maintenance costs, running costs and any storage costs which you may have.
What will happen in the future with classic car prices is, of course, just speculation.
As classic cars enthusiasts, we will never lose sight of what the investment is all about. It is about the passion and the thrill of owning a beautiful classic car.
If further down the line, this makes us some money, then that”s great! If it makes is a lot of money, then that”s even better… !
This article was written and published by Emma Jones. Emma works for Trade Classics as an in-house journalist and copywriter and has many years” experience in the classic car sector. Why not write a reply on this article below – she”d love to hear your thoughts on her thoughts!Google