Which classic cars make sound investment?
I have just retired, with a bit of spare cash available and as returns on invested money are so poor at the moment, I was wondering if an investment in a vintage or classic car would be a wise alternative. And if so what make/model would you suggest?
Regards, PD.
Patrick Devery (Dublin)Oct 2016 Filed under: classic cars
Expert answer
Hi Patrick,
Classic cars are, currently, an exceptionally good investment, but I would exercise a touch of caution – back in the eighties, the same was true and values seemed to quadruple every week, but then came a massive crash in classic prices, which saw more than a few investors get their fingers (and in some cases hands, wrists and elbows) burned.
There are a few specific models and makes to focus on, but first off don’t assume that you can buy an old wreck, restore it and make a profit. Sometimes you can, but proper restorations cost enormous amounts of time and money and many restored cars are actually sold at a loss.
There are some cars that are pretty safe bets though (albeit that comes with the caveat that values can fall as well as rise). The best car for investments seems to be the Mercedes-Benz SL, of pretty much any generation. Mid-sixties ‘Pagoda Roof’ SLs are probably at the peak of their values now, but the later ‘Bobby Ewing’ models still have some viable investment room. The better bet, though, could be to get in on the ground floor of the R129 SL model, built from 1989 to 2002. They’re still relatively affordable, and if the values of their predecessors are anything to go buy, you could be looking at a serious rise in values in the next few years.
Obviously almost any Ferrari is a viable investment tool, although you will need to seek out specialist advice on that one, and it’s getting harder to find affordable ones that have a chance of a good rise in value. Porsches, especially early-model 911s, are a good bet too, with original RS and RSR versions being a solid investment.
Beyond that, anything rare, interesting or, better still, with a celebrity name on the logbook, is worth a look, but as with all investments I’d engage the services of a professional financial advisor before committing to anything.
Neil Briscoe - Complete Car Advisor@neilmbriscoe