Owners of classic cars have bought them for a number of reasons whether it is to restore, drive, admire or sell and hopefully make some money.
Between the periods 1980 to 2008 US Shares raised by five times their 1980 value yet The Historic Automobile Group’s Index, during the same period, increased by 30 times their 1980 value.
Even in the recent financial crisis classic cars have been able to retain their values very well during a period when stock markets have performed poorly.
Paul Denman, director of private banking at Arbuthnot Latham (private bankers) said:”Classic cars are also a tangible asset in short supply with reasonable or healthy demand. What has happened in classic cars post-2008 has some similarities with fine wine. Both have shown very strong growth over that period.”
Denman stressed that classic car collectors tend to buy for love not to make a lot of money.
Denman added:”Anyone who was a boy in the mid-1960s could hardly forget James Bond’s Aston. It is unsurprising, therefore, that someone with concern over the performance of traditional asset classes in the last few years may look at alternatives such as this, with the added benefit of fulfilling that childhood dream, and have a tangible asset in the garage”.
Denman commented that the Aston Martin DB5 has increased in value from £80,000 to £90,000 five or six years ago to around £250,000 or greater now. Apparently cars driven after the Second World War by the likes of Sterling Moss and Juan Manuel Fabgio are in particular high demand.
At prestigious events like the Goodwood Revival and the Historic Grand Prix of Monaco it is the classic car that is invited not the celebrity driver.
Although classic cars change hands at various auction houses such as RM Auctions and Bonhams a lot of exchanges take place by word of mouth.
At a quite recent auction at Bonhams a 1959 Austin Mini saloon Seven De Luxe that is thought to be the oldest surviving un-restored one with only 30,041 recorded miles sold for £40,250.
Perhaps it is time that you reviewed your classic car insurance cover to make sure that yours is keeping pace with its true value.