Is it worth investing in a classic car? Well, some money experts are advising young people to do just this and when you consider that some classic cars rose in value by over 200 % in the early 2000’s perhaps it might be a good investment. Obviously you would need to have the capital to invest in the first instance but when you consider the state of general savings and investments, classic cars might well be the way forward. If you thought of your investment in the same way as you would view stock market transactions and remembered that your investment could rise or fall.
The estimated value of classic cars owned in Britain today is believed to be in excess of £18 billion whilst worldwide spending on classic cars annually is roughly £5.5 billion so as you can see there is a huge amount of money to be made in this sector.
Not sure what a classic car is? To be honest there are no hard and fast rules except that the car will need to be over 20 years old and to be considered to be iconic or memorable in some way. The classic car magazines have huge sway in the making or breaking of what might be considered a classic and are deemed to be the voice that will influence both past and future trends.
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Many memorable classic cars have been created by their association to iconic movies or individuals, most people immediately recognise the Aston Martin DB5 driven by James Bond or the Ferrari 275 GTB owned by Steve McQueen which incidentally sold for over £6 million recently. On a more general level the Triumph stag or the Volvo P1800S driven by Roger Moore as The Saint, the classic Porsche 911 or the Lotus Europa.
To date the most expensive classic car sale has been the Ferrari 250 GTO which when new in 1962 would have cost around £15,000 or just under £300,000 in today’s value. Originally designed as a racing car the GTO’s value was hugely enhanced by the fact that there were only 39 ever made. This car fetched an incredible £29.8 million in 2014, a good return for the initial investment.
As a general rule a classic car will be beautiful to look at with an iconic and memorable design, stylish lines and perhaps an innovative feature or ground breaking technology.
Classic cars come in all shapes and sizes, styles and genres. You will find classics in racing cars like Ferrari and Porsche in general populace cars like Volvo and Ford and even in 4×4’s like Land rover. The classic car market is divide into two portions with pre 1930 cars being classed as vintage classic and post 1930’s as general classic.
If you decide to invest in a classic car then always go for one that you like the look, feel and design of as your ownership will be enhanced with the pleasure of actually driving it.