The classic car market certainly does appear to be proving a good place to invest funds depending upon the car that you purchase. Some classic cars have increased in price by not far off 400 per cent in the past ten years.
Not only have some people seen an excellent return on their investment but they have also had the benefit of being able to enjoy the pleasure of driving around in a classic car. Some of the models that have done particularly well have been Bentleys, Mercedes, Aston Martins and Ferraris with the Ferrari 250 GTO producing a fantastic noteworthy return.
The Ferrari 250 GTO could be bought, brand new, back in 1962 for £6,000 yet one was sold in 2012 for £22.7 million. Recently a dealer had his offer of £30 million turned down for this particular Ferrari.
John Collins, who is responsible for the running of Talacrest that is a specialist in classic Ferraris has, during the last twenty years sold in excess of £500 million of classic cars. At the present time, the market for Ferraris is very buoyant to a point whereby he is having great difficulty in locating any to sell. Because people are reluctant to part with their classic car, prospective purchasers are having to dig deep into their pockets to persuade someone to sell their prized possession.
Apparently, Mr Collins also had an offer of £32.1 million declined in respect of a Ferrari 250 GTO. He has sold stock totalling £75 million since April 2012.
The only asset to have achieved a better return has been gold over the same period as classic cars. Gold has achieved an investment return of 434 per cent. Stamps have risen in value by 216 per cent and rare coins have gone up by 248 per cent. The top end of the housing market in London has grown by 103 per cent.
Only a few days ago, Gooding and Co that is an auction house, sold a Ferrari 275 dating back to 1966 for £1.6 million that is 100 per cent more than the seller paid for the classic car only in 2012. Last year, a Ferrari 250 GT Berlinetta was sold for $6.7 million – in 2003 it was valued at about $1.2 million.