Classic cars are often bought by their owners purely to be admired and driven on suitable occasions. However, some classic cars are also a potentially attractive alternative investment.
Recent statistics indicate that the right classic car is capable of producing returns in excess of traditional savings and investments such as stocks and shares, gold and bank/building society savings accounts.
The Historic Automobile Group International (HAGI) released figures for 2011 that showed a number of classic cars have increased in value by more than the aforementioned investments. Their report shows that the value in some areas of the classic car domain have grown by over 20 per cent in 2011 whereas gold increased by 10 per cent in 2011.
The founder of HAGI, Dietrich Hatlapa stated: “We’ve discovered that classic cars move independently of any other investment area, and that’s a very attractive attribute for collectors and investors alike in this day and age.”
One of the top performing classic cars as far as growth value is concerned was the Bentley R-type Continental Fastback by HJ. Mulliner, 208 were produced between 1952 and 1955 and at the start of 2011 were worth £400,000 but by the end of 2011 their value had exceeded £500,000. The BMW 507, of which 252 were built between 1956 and 1959, increased in value from £500,000 to £750,000 during the same period. The Jaguar XJ220, of which 281 were built between 1992 and 1994 increased in value from £140,000 to over £180,000 in the same period.
However, a word of warning, there is definitely no certainty that just any old classic car will provide a positive financial return. Seeking out classic cars as an investment involves an element of risk much as in the antiques business where antique dealers do not always make the right decision. Also you should remember that just because the classic cars mentioned above have gone up in value in 2011 does not mean that the reverse could not happen in the future.