With the rapid development of science and technology, new cars are updated faster and faster, and people’s desire to pursue individuality is becoming stronger and stronger. As a result, classic cars with both collection value and practical value have become a new favorite in the investment market. Compared with stocks, funds and other financial products, investment in classic cars has lower risks. At the same time, the huge appreciation potential also allows investors to obtain considerable returns. Therefore, classic cars have become one of the best car investments. This article will analyze the advantages of investing in classic cars from multiple perspectives, and summarize what types of cars are more suitable as car investment targets.
classic cars have strong collectibility and can maintain and increase their value for a long time
The collectible attributes of classic cars determine their value and potential for appreciation. Cars like Porsche 911, Mercedes-Benz SL and other luxury brands produced in the last century not only have excellent workmanship and historical significance, but also have excellent performance and driving experience, which makes them popular among collectors and investors. For example, in February 2018, 12 bottles of Romanée-Conti wine produced in 1988 were sold for nearly 180,000 pounds at auction. Compared with ordinary investors, investors of classic cars do not need to worry about the items not being available. As long as they are properly maintained, classic cars can be driven on the road at any time to experience the charm of the times.
the market space for classic cars is huge, and the value preservation and appreciation space has not been fully tapped
According to data, the global auction turnover of classic cars in 2021 will reach 11.2 billion US dollars. However, this figure only accounts for a small part of the huge classic car market space. Currently, the vast majority of potential classic cars are still in the hands of individual owners. Once these cars enter the market, it will bring more investment opportunities. In addition, emerging markets such as China and the Middle East have huge demand for classic cars. With the opening and development of these markets, classic cars still have a lot of room for value preservation and appreciation.
compared to financial products, classic cars have lower risks and are not affected much by policies
Stocks, funds, and precious metals are all greatly affected by economic trends and national policies. Once unfavorable policies are introduced or the economy deteriorates, it will cause violent fluctuations in their prices. But classic cars belong to emotional consumer goods with strong collectibility, so their value is more stable. Unless there is a global economic crisis, the pricing of classic cars will not fall sharply in a short time. At the same time, the classic car market is not subject to financial supervision. Therefore, investment in classic cars will not have policy risks, and investors can get stable returns through long-term holdings.
the huge profit makes investment in classic cars extremely cost-effective
Although the initial investment in classic cars is large, the return on investment is quite impressive. Taking the Porsche 911 as an example, in the early 1970s, it could be bought for around 9,000 pounds, and now its value has reached about 5 million pounds, with an appreciation rate of nearly 6,000 times in 50 years. Not to mention that classic cars can participate in various events to gain exposure. For investors with a certain financial strength, investing part of their funds in classic cars to hedge against risks while enjoying handsome returns is an excellent choice.
To sum up, classic cars have investment value that ordinary financial products cannot match due to their collectibility, scarcity and emotional attributes. And their market potential and profitability are also very impressive. Investors who understand classic cars can reduce their investment portfolio risk exposure while obtaining stable and considerable returns through classic car investment.