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Classic cars as an investment

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    Classic cars as an investment

    Seems like the "in thing" at the moment:

    BBC News - Classic cars rev up their investment credentials

    Until recently the market was driven by enthusiasts who drove the cars as a hobby. The fact that the cars often rose in value was an unintentional side effect of what these connoisseurs call "automotive art".

    However, as the economic outlook remains gloomy and the financial markets remain volatile, people are starting to invest more seriously in tangible assets like art, wine and classic cars.

    This perhaps accounts for the eye-watering transactions carried out here at Goodwood.

    On Friday, in a packed tent, Bonhams auctioneers sold a Rolls Royce Silver Ghost for £485,500, and a Ferrari 365 GTS/4 Daytona sold for £595,500.
    Of course, we all know what happened last time there was a classic car investment boom:

    BBC NEWS | Business | Making money from classic cars

    Monday, 27 October, 2003, 11:41 GMT

    ...

    The classic car market has had its own version of the dotcom boom and bust.

    In the 1980's once sedate car auction rooms became a hangout for yuppies.

    Price records fell like confetti as investors bought at auction, then shifted the car straight to storage intending to scoop a profit at a later date.

    However, the market was built on shifting sands.

    "High prices drove enthusiasts from the market and as a result investors ended up selling on to other investors, it couldn't last," Mr Banner said.

    The 1980s boom was followed by a 1990s bust, and as a result only at the top end of the market are classic cars more expensive than new models.
    "A life, Jimmy, you know what that is? It’s the s*** that happens while you’re waiting for moments that never come." -- Lester Freamon

    #2
    I have noticed a steady appreciation in some models. I find the investors and super rich tend to target the top end of the market, that pushes the genuine enthusiasts with more limited means further down the food chain so stuff like the relatively "bread and butter" Ferrari 330 & 365 GT 2+2 have seen a fairly significant appreciation, even relatively unloved stuff like the mondials and 308 GT4 have doubled in value since their historic lows.

    Personally I fancy a 456, not quite a classic yet though.
    While you're waiting, read the free novel we sent you. It's a Spanish story about a guy named 'Manual.'

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