The Coutts Index; Objects of Desire revealed that the price of classic cars has risen by an average of 257% between 2005 to 30th June 2013. This level of performance is more than 80% greater than any other investment detailed in the above index.
Is it still worth investing in a classic car?
Some of you are probably wishing that you had got into classic cars as a form of investment back in 2005 but there is absolutely no point in looking back. The big question is: “ Is it still worth making such an investment?”
Unfortunately, nobody has a crystal ball that will tell him or her what he or she should do as past performance is no guarantee of what will happen in the future. This is no different to when considering investing in stocks and shares as the value of such things can go down as well as up.
If you are considering buying a classic car purely for investment purposes you should really get some professional advice if you have only limited knowledge yourself about the classic car market. After all, you don’t want to commit what could be a significant amount of money only to find that in the coming years your investment has dropped substantially in value.
There are so many factors that impact upon whether a particular classic car will be a sound financial investment. For instance, the make and model of car, its purchase price and its current condition.
Obviously, if you were to buy a vintage car whose price reflected the fact that it needed an awful lot of work doing to it that you were capable of doing yourself then, potentially, that is a positive factor. You should still get an opinion as to what it will be worth once the works have been carried out and what the cost of the parts will be so that you can do the maths to give you an idea if it will hopefully be financially profitable.
So, if you do decide to invest in a classic car, we wish you success in sourcing what you consider to be the most suitable one to meet your investment objective.
