There is no guaranteed profit in investing in classic cars and there can be substantial medium-term losses if the purchase takes place at the particular model’s apex of desirability, as we have seen at the classic car auctions over the last twelve months where very highly estimated lots have been failing to reach anywhere near their reserve price.
If you would like to invest in classic cars with a low exposure to market judders and changing sentiment, I recommend buying tomorrows classics. These cars must of course have some intrinsic attractive qualities, beauty or extreme performance along with some element of limited supply.
Most of the hugely expensive classic cars were once unloved, undesirable and valued at a fraction of their purchase price and a much smaller fraction of the heady prices they command in today’s market.
I have listed below a small selection of models that I believe are at the lowest point of their depreciation cycle, but have the qualities of becoming future valuable objects of desire.
Aston Martin DB9 Coupe and Volante production 2004-2009
Stunning looking genuine supercar, with current prices between £28,000.00 – £50,000.00
Parts and servicing are very expensive and electrics in the earlier cars are temperamental.
The DB9’s predecessor the DB7 have appreciated in value over the past few years and it lacks both the build integrity and the looks of the DB9.
Alfa Romeo Spider (105/115 series) Production 1995-2006
There are quite a few of these crisp handling miniature Ferrari’s around, from around £1,500.00 to £10,000.00. The 3.0V6 is the pick fast and great sounding engine.
They must be relatively rust free and have had the timing belt changed as per the schedule, which is an expensive job in relation to the value (around £800.00) but essential.
Mercedes SL (R129) Production 1989-2002
Solidly built and useable, AMG and bigger engine models more desirable, these are beginning to edge up in value but available from £5000.00 upwards.
Mercedes SL Class Production 2002-2011
These cars are readily available, as with the earlier model it is best to seek out the rarer bigger engine models and the AMG versions which have just started to move up in value, but in the fullness of time they will all appreciate as their predecessors have.
Jaguar XK8 and XKR Coupe and Convertible Production 1996-2006
Be wary of rust problems, however, the last of these sleek cars are moving along nicely in value and have further to go. The following generation are also worth keeping an eye on, as I feel sure they will go the same way.
Jaguar XJ6 XJ8 XJR (X350 model) Production 2003-2009
As with the earlier XK’s these saloons are sleek and graceful they look and feel special compared with the rather bland current Jaguar saloons, their ascent in value has also just got underway.
There are lots of other potential future classics that could be sound investments, if you would like to enjoy building a portfolio of cars make sure to have dry safe storage and never rush into a purchase. Some examples of auction venues are: Bonhams, Historics at Brooklands, Coys, Brightwells, and H and H.
A few expert tips:
With all cars requiring an MOT you can research the last 10 years MOT history at
check-mot.service.gov.uk this is very useful as it gives you a feel as to how the car has been maintained and cared for generally for example if the same advisories are repeated year on year it indicates that the previous owners have been reluctant to spend money on the upkeep.It is likewise essential to conduct an HPI check or similar to establish whether the vehicle is subject to outstanding finance, classics get financed as well as modern cars, serious accident damage , number of previous owners etc.
If you become aware of a mechanical or electrical problem it is advisable to get an estimate for repair prior to committing to the purchase.
Good hunting!
