Is a classic car a smart investment?
Realising major returns from an investment is difficult, and often requires investors to consider alternative investment classes. In the September 2016 issue, Money magazine looked at the typical makeup of investment portfolios consisting of “safe” investment classes like cash, Australian shares, and residential real estate - and found these portfolios trailed the field.
One area they found outsized returns? Classic car investing. In fact, some models more than doubled their value within a year. The market segment is thriving, and supports numerous television shows and major magazines. Multiple indices also provide information on vehicle valuation.
The Knight Frank Luxury Investment Index (KFLII) tracks the aggregate performance of luxury car investments along with other prestige goods that they cheekily refer to as the “so-called investments of passion”, like art, jewelry and wine. For specific vehicles, the Hagerty Valuation Tool (HAGI) make it easier to approximate valuations on a make and model. Forbes also stated that in Australia, Porsche, Jaguar and Ferrari models have been particularly rising in value as of late.
Past performance is, of course, no guarantee of future return, and we’d never hazard to give you investment advice. But whatever your interest in classic and luxury cars might be, we invite you to join us at our next Luxury Vehicle Auction, Monday 24 Oct at 6pm at Pickles Sydney.