Collectable Cars Prove Themselves As Valuable Investments
Although we've known this for a long time, data proves that classic collector cars remain a solid investment
Interest in classic cars from an investor’s prospective has grown significantly in recent times. It’s easy to see that this is true, even without insider information. The recent Scottsdale round of auctions yielded some insane bids, and Barrett-Jackson hosted a record breaking event. These trends are sparking interest in investment insiders, who are crunching the numbers for enthusiasts to see for themselves.
As outlined in a recent article by Patrice Collette of the Capital Group, “In the past few years, interest in classic cars has grown enormously. This enthusiasm has been powered by a rise in the number of aficionados and a perception among some that historic cars are a viable asset class.”
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Collette adds that, “This August, a batch of 25 cars that included Lamborghinis and Ferraris went for $67 million, the most ever for a single collection. Over the past decade, appreciation in the value of classic cars has handily surpassed that of art, wine and coins, all of which notched considerable gains themselves, according to the Knight Frank Luxury Investment Index.”
Classic cars delivered a 28-percent return over the 2017 year, and beat other investments considered to be ‘luxury’ items - think wine, rare coins, and watches. Collector cars are proving to be an asset class that have been underestimated by the market experts.
Unlike with other asset investments, there are unique costs associated with investing in classic cars, “If you buy an older car in original condition, restoration could cost tens of thousands of dollars and take a year or two to complete. Even for those who buy restored vehicles, routine upkeep is a challenge,” said the Capital Group Equity Analyst, while he did add that he does not specifically follow the automotive industry as a professional, but is an automotive enthusiast himself.
So basically, the trend that we all have known is real has finally been validated by the financial industry insiders. If you’re looking into invest in an automobile for financial gain, there are a few savvy ways to get ahead of the game - check out our coverage of vehicles expected to rise in value this year.
This article was first seen on Motorioius. Check out the original article here.
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