Publish date: 2015-10-07 14:42:23
A report by thisismoney.co.uk tells car enthusiasts that now is a good time to buy – and probably collect – classic cars because of their best selling prices, and this high time in classic car collection must be taken advantage of. Many of the classic cars such as pre-war limousines and the stylish vehicles of the 60s have now gone through their depreciation and are rising in value. Investors who are interested in collecting cars can now buy some as great investments as values as expected to still rise in the future.
The report said there are classic cars that have sold for millions such as the Ferrari 250 GTO. This model, which was originally built for Stirling Moss and sold by a UK-based businessman to an American collector, has reached a record-breaking auction price of around US $35.7 million in August of 2014. Classic British sports cars such as the 1960s Aston Martin DB4 or DB5 are now valued at around US$ 630,000 to US$ 1.22 million. These cars were just at around US$ 235,000 five years ago. Another case in point is the Jaguar E-Type Coupe Series I which was valued at US$73,800 last 2010, and now has leaped to its highest value so far at US$177,000.
The prices of these classics may have our heads spinning in amazement but the good thing is these cars may actually be within our reach. James Knight, head of Bonham’s motoring department said that the classic car market is not exclusively for the wealthy, despite its record prices. “I bought my own Austin-Healey 100 about eight years ago and paid £15,000. It’s now worth almost double that. You could buy a nice MGB roadster for £5,000 and find it’s worth £7,000 in a couple of years time too.” Now at 51 years old, Knight has been auctioning cars since 1984 and says he has never experienced a long-term downturn in the market. He added, “The late 80s and early 90s were a boom and bust but generally it moved steadily upwards from 2000 until 2010, when prices really started to rise. And I don’t think the bubble is going to suddenly burst. The market is letting off a bit of steam at present but like a pressure cooker, that’s good for everybody because it acts like a safety valve.”
Knight gives a disclaimer though. He reminds those who are looking into classic cars as an investment that not all of these vintage or classics are steadily rising in value. Post-war, high performance classics, like Ferrari, Aston Martin, Jaguar and Maserati are among the favorites with connoisseur collectors while typical-looking pre-war limousines such as the Rolls-Royce Phantom II are declining in value. He says, “It’s all about supply and demand. There’s still a ready supply of pre-war cars but people in their 50s and 60s with disposable income don’t want a beautiful veteran saloon. They want a car that represents something more fashionable and in vogue.” He further explained that cars that were mostly taken for granted during the 80’s and 90’s are now being eyed by collectors. “In 2002, a 1980s Audi Quattro would have been worth around US$73,800 – it’s now worth some US$443,000.”
As a last piece of advice, Knight offers the following criteria before you consider purchasing a classic: “Try and buy a car in the best condition you can. You also want a classic that is original – not over-restored, or restored badly. Look for a full history, a regularly stamped service book and not too many owners. That’s a car that will always be in demand.”
For those targeting long-term investments, This Is Money suggested six of the best car models that are seen to be the next high-valued classic cars of the future:
- 1980 Volkswagen Golf Mk I
- 1980 MGB Roadster
- 1975 Jensen Interceptor GT
- 1956 Austin-Healey 100
- 1966 Jensen C-V8
- 1984 Ferrari Testarossa Type F110
In two decades, the highest amount these cars can go up to is at around US$ 252,000. Do you have any of these classics? Share us what you think at the comments section below.
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