In this era of financial uncertainty where solid investments can be difficult to find and where we’re constantly told that we’re only one banker bonus away from oblivion, the classic car market is a risky but potentially lucrative investment opportunity, if you have the funds available at your disposal.
According to this article in The Independent, a McLaren F1 that cost £635,000 brand new back in 1992 is now said to be worth around £3.5m. Of course, that would entirely depend on whether you could possibly have held on to such a sought-after car for 20 years. Therein lies the risk when you’re purchasing cars as an investment: Wait too long and that window of opportunity could close and you make less money than you could have. But sell too soon and you could see yourself lose a substantial fortune. Knowing when to sell is probably half of the fun, and if you have that kind of cash at your disposal, it must be pretty damn fun.
Even if you’re not a multi-millionaire investor, there are a number of great – and more affordable – classic cars out there to invest in that are likely to make you a nice profit down the road. A mint-condition Mini S Cooper rally car or a VW Golf GTI are likely to pay-off handsomely, and isn’t having one of those to cherish a lot more interesting than handing your money over to a boring bank to give you 0.000001% interest over 3000 years. That might be an exaggeration, but you get the point: Investing in something fun, cool and interesting has got to be a great alternative to the norm.
There are approximately two million classic car owners in the UK, which shows that a good set of wheels is still regarded as a solid investment. If you are around retirement age and you have a classic car stashed away in your garage, it could be a nice nest egg as you prepare for that next step in life, and you won’t have to rely on your pension, savings or your home quite as much.
Of course, it would be foolish to suggest that everybody should invest in a classic car, and that you were guaranteed a champagne lifestyle off the back of the sale of it in the not-too-distant future. But it should definitely not be ruled out as a possibility. You don’t have to near bankrupt yourself to pick up a good investment either. You could invest around £3-5,000 in a car and see it return a profit within a few years. It is wise to check your ear to the ground and read up on what the experts are saying are good investments and what cars to steer clear of. Purchasing a vehicle without any research could lead to you making no profit at all.
Whichever end of the market your finances sit at, it’s clear that the potential to make a good mayday from a classic car is there to be taken, if you’re prepared to take the risk, do the research and you have the patience to wait until the iron is hot before you strike. When you have your car, you should definitely take an insurance plan out to protect your investment. Companies like Emerald Protection have special plans in place for owners of classic cars. Risking your profit is one thing, but risking the safety and protection of your car is something else entirely.
The Gentleman’s Journal released a list of classic cars for under £10,000 that includes some true gems, including the MGB GT and the Audi Quattro (a must for fans of the 80’s or the BBC series Ashes to Ashes). If you have the cash to spare, one or more of those cars would make a great addition to your garage. Just don’t use it to chase bad guys through the streets of London like Gene Hunt. You might find yourself investing in some jail time instead.
Some people prefer to take the non-risk approach and stick their money in the bank. Investing in a classic car will be too cool for some people to resist.