Is This the Right Time to Invest in Classic Cars?
With the current credit crunch hanging over the British economy, many are looking towards the best method of investments so their money is worth more in years to come. The effect of the economic situation on traditional investment routes has been to make them more risky than ever, with a situation in which nothing is certain.
Instead, many have started looking more towards investments closer to home, and putting money into a classic car is one way to do this. It`s worth bearing in mind that, far from the technical world of stock market investments, car investments are rather more subjective. You can look out for trends in the car market to see what might be popular in future. For example, manufacturers producing a new version of a classic can send the value of the original soaring and also maintain interest in the original (the mixed reception of BMW`s new Mini had a positive effect on interest in the original). Although, bear in mind it can also negatively affect the value (as happened with the Ford GT40).
A good budget investment, with an abundance of specialists and spares, is the MGB. A decent model that can be worked on can be had for around £5,000, and parts are cheap due to them sharing components with other MG/Rover/British Leyland cars. One of the cars to have best held its value since its release is the Jaguar E-Type. These saw volatile prices in the eighties, but have now settled down and seem to be still rising steadily. The downside is that it can be risky to invest in anything below £40,000, although you can expect the value to double or triple if restored correctly, and there are a lot of specialists out there. If you`re more familiar with American cars, the Mustang can be a good investment, and its iconic image has ensured values have remained strong. If you`re looking at something more specialist like this, a classic car auction can be a good way to find the rarest models, but you should know what you`re looking for, or take a friend who does. Models that have sold recently for several times their price ten years ago include the exotic Ferrari Dino and Aston Martins (of any description). If you buy the right model, and put in the right work you can see a worthwhile gain on these, but buying a shed can have equally harsh consequences, and just keeping them roadworthy can prove expensive.
It can be worth keeping an eye on
car news sources which often feature predicted values of classics and depreciation rates of newer cars . Investing in a classic car means your investment is sat on your driveway or in your garage, and, while it must be done carefully, you have personal control it won`t disappear instantly due the poor decisions of some bankers you`ve never met .
