Coutts is a merchant bank that has been trading for many years. You may be interested to know that the bank has produced The Coutts Index that monitors the value of “passion” assets. These sorts of assets includes things like jewelry and watches as well as things like rare musical instruments and classic cars,
The index reveals that the value of classic cars dropped by an average of 10.4% in 2016 with this being the largest reduction of all assets covered in the index. It is worth noting that classic cars appreciated the most in value since 2005 with a return of 331.9%. This is a tremendous increase over the long term. Classic car prices also reduced in 2015.
However, it is concerning that the average value of classic cars has fallen by such a high percentage last year and it will be interesting to see how classic cars perform in 2017.
The second best performer behind classic cars since back in 2005 was coins. These saw an increase of 224.6%. We are sure you will agree this is a significant rise.
In third place was fine wine. This saw a rise of 153.1% since way back in 2005.
Of course, many people buy a classic car for other reasons and not just because they are hoping that the value will increase significantly. For instance, someone may decide to purchase a vintage vehicle that is in need of restoration and get a great deal of satisfaction by restoring it to its former glory- often taking many years to complete the project. Yes, the value of the restored classic car may have increased to such an extent that it is worth considerably more than what the owner paid for it even allowing for the costs involved in restoring the car but that may not be the primary reason for buying such a vehicle.
You should not forget to review the level of insurance on your classic car as you would not want to find that you have under-insured the vehicle should you come to claim on the policy.