There are an awful lot of wealthy individuals in the world with some being worth several billion pounds. No doubt many rich people enjoy investing some of their funds in luxury assets such as jewellery, boats and classic cars.
Well, apparently, according to the Knight Frank Luxury Investment Index (KFLII by asset class), last year, classic cars performed better than any of the other 9 luxury investments that were monitored as far as price growth was concerned in the above index. Classic cars rose by 17% in 2015 that was in excess of the likes of art, watches, coins and jewellery.
If you are the owner of a classic car or have a keen interest in such vehicles, you will be aware that some classic cars do sell for significant sums of money and, over the years, have grown significantly in value. In fact, according to the above index, classic cars have grown in value by over 400% in the past 10 years – much more than any of the other assets that are tracked by the above index.
People buy classic cars for a variety of reasons. Yes, there are no doubt some that buy such a car purely for investment purposes with the vehicle being kept hidden away under lock and key for a few years and then to be sold for a profit. There are no doubt many classic car enthusiasts that buy an old, dilapidated classic car with a view to restoring it over an extended period of time and then selling it for a lovely profit. There will be those that restore such a vehicle with no intention of selling it but intend to take it to classic car shows and/or take it out for a ride on a delightful summer’s sunny afternoon.
Let us hope that classic cars continue to prove to be popular for people no matter what the reason is that they purchase them.