Classic Car Prices Are Skyrocketing
If you’re shopping for a classic car, you might be suffering from sticker shock lately.
A new report from banking group AfrAsia and wealth intelligence firm New World Wealth confirms what you might already suspect: classic car prices have been surging. Looking at data from 2010 to 2020, the study concluded certain models saw nearly a 300% increase in value.
Forget the stock market, classic cars are the hot investment to jump on at the moment. This means even people who aren’t truly gearheads are getting in on the action.
For those who don’t know much about the market, they often gravitate to the “big name” models like the Hemi ‘Cuda or classic Dodge Charger, if not a Ferrari or Shelby Cobra, if they can afford such vehicles, driving values up considerably.
According to the report, the top performers when it comes to value growth over the past decade have been the McLaren F1 with a 280% increase, Lamborghini Countach with a 250% increase, Ferrari 250 GT California Spider with a 240% increase, Ferrari 250 GTO with a 230% increase and Lamborghini Miura with a 220% increase.
Notice all are European and have an exotic appeal, which isn’t a coincidence.
Before you get discouraged, the good news is for those who don’t care so much about the image of owning one of the ultra-popular classic cars, there is hope. Many good vehicles get glossed over by the masses of investors.
Depending on your preferences, these cars can be more enjoyable than the over-hyped options. And while they aren’t seeing a 300% increase in value, the whole point of owning them is that you don’t have to take out a second mortgage to do so.
Also, if you only own one classic car, you’re not disadvantaged at all. That’s what most people have. Investors with a whole stable of classics tend to be what the report terms “high-net worth individuals”---people who are absolutely loaded. We doubt they drive most of the cars much if at all, treating them more like a strict investment than a vehicle.
Check out the report for yourself here.