Here is an alternative investment that may not have occurred to you. If you have an interest in classic cars this is a very good proposition. If you can pick up a future classic you may have your retirement all planned out!
If you had invested £140,000 in a London house in 2004, you would now be the proud recipient of a profit of around £100,000. 60% return on investment sounds very handsome but according to the Historic Automobile Group Index, classic cars have been the best performing investment over the past decade, with average gains of 456%. For those that have a passion for works of art on wheels, a classic car would be a lot more interesting to own.
A gentleman in 2004 purchased a Ferrari 275 GTS at auction for £142,000. Last month the same car appeared back on the market for £1.17 million, an investment not to turn your nose up at.
There are some immovable rules. The car must be in pristine condition, with low mileage and have a complete service history. There will always be some downsides to owning a classic car such as reliability issues and the odd need of restoration, but isn’t that part of owning a classic car?
The Sunday Times recently ran an experiment asking the top 4 UK car collectors their top tips and cars to invest in over the next 5 years. These are their suggestions:
Porsche 928 – Pay from £10,000 sell in 5 years for £25,000
Honda S2000 – Pay from £8,000 sell in 5 years for £15,000
Ferrari 355 – Pay from £45,000 sell in 5 years for £75,000
Jaguar E type – Pay from £85,000 sell in 5 years for £200,000
McLaren F1 – Pay from £5.5m sell in 5 years for £15m
Coins, stamps, wine and art are all good investments but can you really enjoy them like you would a future classic car? Make a different investment this year in the hope you cannot only enjoy the journey but also the reward at the end.
For any other vehicle needs call GWA on 01243 510 650