Car News 24 Feb 2016

Is Now the Time to Invest in a Classic Car?

Is Now the Time to Invest in a Classic Car?

The classic car market boomed famously in 1988, but crashed in the early 1990s with some prices collapsing by as much as 40%.  This time though the theory is different.

Market growth has been steady and with savings rates set to continue at record lows for the foreseeable future, classic cars could be deemed a better investment than an ISA. Coutts Private Bank stated that the value of some classic cars rose 257 % between 2005 and 2013. 

Nowadays, cars are valued for their history and provenance rather than purely on their condition, as was the case in the 1990s.  Buyers today are better educated, and with growing interest from emerging markets such as India there are more buyers after the same number of cars.

A 1938 Mercedes-Benz 540K Cabriolet A (pictured) was sold last week for £2,034,396 at the second Bonhams auction in Stuttgart, while a 1931 770 ‘Grosser Mercedes’ Cabriolet D ,that originally belonged to the German actor, producer and director, Erik Charrell, reached £1,703,806.

According to Historic Automobile Group International, an independent investment research organisation, classic cars have been one of the best-performing investments over the past decade, with the value of ‘exceptional historic’ cars climbing 12% in just the last year. Compared to the beginning of 2009, the price of such cars has risen dramatically, by up to 163%.  

Oracle Finance providing flexible finance for exceptional cars.

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