At a time when interest rates are at an all-time low, it’s wise to think about alternate investments. After all, money that’s just sat in your savings account probably won’t be working for you, and it’s unlikely to be gaining any interest while it’s just sat there.
So, what should you invest in? In this post, we take a look at why classic cars can be a great investment, as well as selecting what we think could be classic cars of the future.
Why Invest in Classic Cars?
Over the course of the past decade, classic cars have been one of the world’s best performing investments according to the Historic Automobile Group Index. This means that classic cars have outperformed investments such as watches, wines, coins, stamps and even art.
Although some analysts believe that this represents an ‘investment bubble’, the majority believe that there’s plenty of money to be made from classic cars; especially major brands such as Ferrari. After all, the industry shows no signs of slowing down at present, and the market is starting to expand into China and the far east, with the potential to be very lucrative indeed.
Although major brands like Ferrari often see the largest returns, they’re often the most expensive to buy to begin with. However, they’re not the only option, and modern cars that you can buy for under £10,000 or so also have the potential to be modern classics at a fraction of the cost. Let’s take a look at some options:
Predicting Future Classics
When you’re looking for a future classic, you really want to look at cars with low mileage that are in good condition, with a complete service history. If you can find a celebrity connection to a vehicle, or a car with racing pedigree/ history, then that’s even better. Cars in good condition are less likely to require any expensive repairs, or require hard to source parts that could potentially eliminate your profit. With this in mind, here are five cars you could look at as a future classic:
#5 Peugeot 205 GTi – Values for the MK1 GTi have already started to go crazy, so buy now before they rise further.
#4 Jaguar XJS – You can never go too far wrong with a Jag. It’s spectacular to drive and boasts excellent economy.
#3 Triumph Dolomite Sprint – Good ones are now few and far between, but they always have a lure in the racing community, so you’ll always have a buyer. They’re cheap to restore, too.
#2 Toyota Prius Plug-In – Classics are often the first of their kind, and that’s exactly what you get with the Prius Plug-In. You also get the advantage that they’re incredibly cheap from sites like RRG. This is much more of a long-term investment, but comes at a relatively low risk compared to some others.
#1 BMW E46 M3 CSL – If a car is going to be a classic, it’s also likely to be rare. Only 1,400 of these were ever made. If you can find one with low mileage, it’s bound to be a great investment.