Investing in a classic car is a profitable long-term investment. According to Knight Frank’s Luxury Index Investment last November, along with art, wine, rare coins, and jewellery, vintage vehicles offer a better ROI than any other collectibles.
So how will you know if the classic that you’re eyeing on is not a lemon of a deal? How will you know that you’re buying the right collectible car? Chairman of Hexagon Classics and classic car connoisseur Paul Michaels shares his insights on what you could do to make sure that your money will not go down the drain. Paul said, “If you’re looking to put your hard-earned money into a car in the hope that it will go up in value, this is much more likely to happen with something that has low mileage, very few owners and perfect service history. It is much better to spend more at the point of sale than to grab what you think might be a bargain. It’s never easy predicting how much cars will rise in value, but buy right and you could certainly expect an uplift of 20 percent over the next three years.”
Here’s the list of classics that made it to the cut of Paul Michael’s highly desirable vintage cars that he predicts will soar in value in the near future.
Mercedes SL R129
“All R129s are known for their reliability, although its electrics are still quite complex so make sure everything works, such as the hood mechanism.
Talking of the hood, with a soft-top and hard-top, they make for fantastic year-round cars.
This usability makes it tricky to find a low mileage example, but you can still get a V8 SL500… with less than 40,000 miles on the clock.”
BMW E46 M3
“One of the best BMW coupes ever with a race-derived M Sport six-cylinder engine, sharp handling and plenty of space.
The market has woken up to rarities like the carbon-roofed CSL and the UK-only CS but the standard car still has some way to go.
Around £20k (US$23k) gets an absolutely immaculate Coupe with 35,000-miles and a manual ‘box.
Make sure the subframe isn’t cracked (this was a warranty replacement) and the VANOS valve timing system is in good shape.”
Alfa Duetto Spider
“Made famous by The Graduate, the Duetto Spider mixes movie glamour with Sixties Italian style.
It’s the archetypal classic roadster and best enjoyed in early 1600 Twin Cam engine form, combining throttle response with lithe handling and pure styling.
You won’t be surprised to find that rust is this Alfa’s biggest enemy – mostly around the sills – and the electrics can go haywire too.”
BMW E39 M5
“The best performance saloon BMW ever made with a charismatic 400bhp V8, slick manual gearbox and engaging handling.
The oldest may only be around 15 years old, but the E39 M5 has already reached modern classic status. Don’t be tempted by a £10k 100,000-mile example; the plastic tensioners on the camshaft can deteriorate on high mileage cars and there can be problems with the VANOS variable valve timing system.”
“The P1800 was a bit of an oddity for Volvo. Back in the Sixties, the company was better known for making sensible family cars than stylish two-door coupes – much like today in fact.
Popularity got a major boost in 1962 when Roger Moore drove a P1800 in The Saint. The car’s rarity and looks are appreciated these days and values are heading up – but buy with your eyes open. Check for rust – the floorpan, wings and boot lid are problem areas – and make sure the dashboard hasn’t cracked as replacements are hard to find.
Two More Contenders that Are Higher than $50K but Have Lots of Potential
BMW Z3 M Coupé
Porsche 911 Carrera