If you have an interest in classic cars then you will no doubt be aware that many have proved to be a good form of luxury investment in the last few years. This is borne out by the Knight Frank Luxury Investment Index.

The Ferrari 250 GTO can sell for many millions of pounds.

The Ferrari 250 GTO has proved to be a successful investment for some classic car owners.

According to their most recent index, classic cars have gone up in value by an average of 496% in the last 10 years. In the last 12 months they have gone up in value by an average of 18%.

The next closest high performing investment over a decade has been in wine that has gone up in value by 243% (over 10 years) and by 7% over the last year. In third place, over a decade, was art that has increased in value by 239% (over 10 years) and 15% over a year.

If you had invested in coins you could have seen an average return of 232% in the last 10 years. Over the past 12 months coins rose in value by an average of 13%. Stamps did very well going up in value by an average of 166% over the last 10 years but only rising by an average of 2% in the last 12 months.

Obviously, it will depend upon which classic car you bought as to the sort of return that you may have obtained. Looking into the future, if you are considering investing in classic cars, then what has happened in the past in terms of performance is no guarantee that the same or a similar thing will happen over the next 10 years. There could be one or more factors that affect the value of a classic car.

Of course, lots of people buy a classic car purely because they enjoy driving around in such vehicles or get a great deal of satisfaction out of restoring one and are not bothered whether it increases in value or not. However, if you are considering buying a classic car as an investment, you may wish to obtain some suitable advice from an expert in this respect.