If you are looking for a good investment this year then why not try investing in a classic car. Now you may think a car an investment how can that be? Your experience may be that you are used to buying a new car and see it depreciate in value from the minute you drive it out of the car showroom. But I’m talking about Classic cars here.
Indeed Classic cars have seen soaring sales and have quickly become an asset over the last few years with investors turning from buying property due to a decline in property prices. Those who have made investments on classic cars such as Ferraris and Mercedes have see an almost 500% return in 10 years. Due to this the big car auctions such as Bonhams Auctions have seen an increase in sales with far busy auctions. This is very healthy for the industry because as any avid auction going will tell you the more interest you have in a particular car then the more is goes for.
A classic car at Bonhams Auctions
When we think about a classic car then it isn’t always easy to get a clear definition of what make a car a classic car. Although the definition varies globally, if your go to Bonhams Auctions you will find that it is generally a vehicle which has a wealth of history enough to make it collectable and worth keeping. In many circles it is a definition which is kept for vehicles which were made before 1973.
When it comes to the top money makers a good investment is a 1950s to 1960s Ferrari or Jaguar are always wanted and in demand so resale profit is almost guaranteed. However don’t think the car has to be that old either as 1980s vehicles have recently seen a rise in the market place with a BMW M3 recently being sold for £30,000 and ten years ago that could be purchased for just £10,000. This is not an isolated sale either as Bonhams Auctions report that they have seen Ford Sierra Cosworth sold for just under £100,000.
The increase in these newer more modern cars holding their price and even becoming an asset had brought in a new market place. Namely, the modern classic car market. This as been great for the industry as it has opened the door and made it easier to get into the hobby of classic motor cars.