Investment
Invest in a classic car and be guaranteed – at the very least – a lot of fun
investment
DRIVE TIME
FEW INVESTMENT OPPORTUNITIES CAN PROMISE AS MUCH FUN AS A CLASSIC CAR
words: phil bell
I’M OFTEN ASKED if classic cars are worth investing in, and my standard answer is that they can be. If that sounds surprisingly guarded coming from the enthusiastic editor of a magazine called Classic Cars, let me explain. While some cars have grown in value nicely over the past couple of years, it’s a complex and dynamic market that can soak up more money than it will return. Fortunately, it’s also a colourful and rewarding world to step into.
Every time you open the garage door and gaze at the bodywork of your classic you’ll feel a rush of pride. Slide into the driver’s seat and you’re transported to another era. Then you hit the road, savouring the feel of the controls and the rasp of the exhaust. It’s a mind-bending drug that’s harmless and legal. Just owning a classic marks you out as an individual, and every time you stop for fuel someone will want to talk about it. Best of all, a vibrant world of events awaits – perhaps a
gourmet tour of the Scottish Highlands, a recreation of a 1950s Italian road race, wheel-to-wheel combat on the iconic circuits of the world or a simple gathering in a show field. Active events offer an opportunity to use your classic, provide a ready-made social scene and, unsurprisingly, drive up the values of eligible cars.
There’s an extensive network of specialists who will be happy to look after your classic and supply parts, but regular maintenance, insurance and storage costs can erode your investment. Cars with the best growth potential tend to be the most expensive to look after, so you need to fi nd out whether you’re letting yourself in for £1,500 or £15,000 a year before you buy.
If you get involved in restoration, costs can easily become out of proportion to the value of the car. At the affordable end of the market, a popular model like a late 1960s MGB roadster, worth £8,000-£10,000, can cost twice that to restore.
Even as you approach values of £100,000, restoration is barely cost effective. Unless you’re driven to save a derelict classic or are determined to have one rebuilt to your own spec, buy a perfectly-restored example at top market value.
So, how do you choose a classic that will grow in value faster than it burns money? Start with some detective work, using auction results and expert opinions to fi nd out what cars are really selling for and where the value trends are. To familiarise yourself with the latest auction results, visit www.classiccarsmagazine.co.uk, where you’ll also find contacts for specialist auction houses, car clubs and dealers.
Most classic car magazines include market analysis each month, as well as lots of dealer and private cars for sale.
The classic car market is highly selective – only a tiny proportion of classics are desirable enough to grow in value and even an exotic badge is no guarantee. Read the tips in the box below to understand the key factors that infl uence the price trends.
CLASSIC DEALERS
ARNOLD CLARK, Glasgow,
www.arnoldclark.com
AXEL SCHUETTE, North Germany,
www.axelschuette.de
BOCKING GARAGE, Yorkshire,
www.bockinggarage.co.uk
CMC, Shropshire,
www.classic-motor-cars.co.uk
GREGOR FISKEN, London,
www.gregorfisken.com
SHERWOOD RESTORATIONS, Newark,
www.sherwoodrestorations.co.uk
MARREYT CLASSICS, Belgium,
www.marreyt-classics.com
MECHANIQUES MODERNES & CLASSIQUES, Paris,
www.mmc-paris.fr
OLDTIMER, Manchester,
www.oldtimermanchester.com
LEGENDS, Cheltenham,
www.legendsautomotive.co.uk
DUNCAN HAMILTON, Hampshire,
www.duncanhamilton.com
TIPS FOR THE WOULD-BE INVESTOR
POINTS TO BEAR IN MIND IF YOU’RE IN THE MARKET FOR A CLASSIC CAR
Cars that were still highly desirable to enthusiasts when they were fi ve years old show good growth potential.
Eligibility for retrospective events such as the classic Tour de France (now called Tour Auto) has a powerful infl uence. “Ask people in the event scene about new events or new classes – perhaps for younger cars – within existing events,” says classic investment advisor Simon Kidston.
The ultimate collector cars are those that actually competed in the original events. Take a 1962 Ferrari 250 GTO – success in great car races, rare, thrilling and beautiful. Yours for £5-£10million.
Although the 1930s to the 1960s is seen as a golden era, new generations identify with the cars from their own past. A 30-year-old car now is something from the 1970s. Ferrari Daytonas have probably gone up 50% in the last year or two.
Kidston sees historic race cars from the 1980s, such as Formula One cars, as the next area for long-term growth. Also selected 1980s road cars, such as the Porsche 959.
When manufacturers are doing well as modern brands, such as Alfa Romeo and Maserati, it can also help the value of older models. And growth isn’t confi ned to exotic makes, with popular cars like the Ford Escort RS2000 Mk1 climbing sharply over the past few years.
Swot up using buying guides in the classic car magazines, quiz the experts and pay one to inspect the car before you buy.
One final word of wisdom from Kidston: “You’re better off having a smaller number of really special cars than lots of ordinary ones. They’ll be less expensive to own, you’ll have time to use them and they’re likely to be eligible for events.” Of course, your investment can go down as well as up, but the real value comes from the pleasure of owning, caring for and using a classic. Just be careful: it’s an addiction with no known cure.
Phil Bell is editor of Classic Cars magazine. For professional advice about car collecting, visit www.kidston.com
