With interest rates on ordinary savings accounts having been so low in the last few years and possibly looking to remain that way for quite some time, people are looking for alternative forms of investment. Yes, there is the stock market and you could even buy a few ounces of gold or perhaps some antique furniture but have any of you thought of buying another classic car?
According to the Historic Automobile Group, in the last twelve months, a top classic Mercedes Benz has increased in value by around 24% and a top classic Ferrari by 55%. These are most impressive appreciations in value but of course that does not mean to say that a similar level of performance will be seen in future years.
Admittedly, many people buy a classic car because they love restoring them, driving them and taking them to classic car shows to be admired by other enthusiasts. The fact that they may increase in value is of secondary importance to a large percentage of owners of classic and vintage cars. Nevertheless, surely the fact that many classic cars have increased in value quite substantially in recent years must be a pleasant bonus.
For instance, during the year ending 30 June 2013, the value of gold has fallen by 23% and the FTSE-100 index has risen by 12%. Classic car values have risen by 28%. If you looked at these figures over 10 years you would find that gold has increased in value by 273%, the FTSE-100 index by 55% and classic cars by 430%.
Only a few weeks ago, in the USA, a Ferrari 275 Spyder built in 1967 was sold at auction for $27.5 million. In 2012, a Ferrari 250 GTO built for Sir Stirling Moss in 1962 was sold for $35 million.
Investing in classic cars is certainly worthy of serious consideration but you may wish to obtain some advice in that respect. As already stated, just because the value of classic cars has risen in recent years, does not mean to say that will happen in the future.