People buy classic cars for a variety of reasons. One person may love restoring a classic car and buy one that is in need of a great deal of tender loving care and attention. Having done that he or she may decide to sell the vehicle in the hope of making a profit or retain the vehicle to enjoy taking it out for a drive in the countryside on a lovely summer’s day. Another person may buy a classic car purely to show it off to friends and family retaining it in a museum environment.
However, there are many classic car enthusiasts who buy such vehicles purely as an alternative form of investment. They may have a portfolio of investments such as in cash, equities and property thus spreading their risk.
The Credit Suisse Global Investment Returns Yearbook 2018 makes for interesting reading and provides some data about the investment performance of classic cars. For instance, from 1980 to 2017, classic cars have outperformed other collectables such as wine, stamps, violins, art, books and jewellery. In fact, the price of classic cars has risen significantly higher than any of the previously mentioned collectible assets.
However, just because classic cars have performed very well in investment returns in the past does not mean to say that this will continue in the coming years. These sorts of investment can be quite volatile and this is perhaps why many people do not have “all their eggs in one basket”.
If you are considering investing in a classic car and have little knowledge about them then you may wish to get some professional advice from someone that does as, we are sure you will agree, it would not be very good if you were to loose money on your investment. There are no doubt certain classic cars that have the reputation for increasing in value over a period of time and presumably there are classic vehicles that do not do so.