Most of us invest in a classic car through appreciation of style, engineering and class, or from sheer nostalgia - although there are those who prefer the financial side…
Buying a Ford Sierra once cost pennies - now it's a different story.
Pensions are a difficult thing to manage these days; if you want a decent payout in the next 30 years we’re advised to put away £750 a month by the big wigs. £750! Only the top cretins of the country could manage to do that without sacrificing pleasures such as food, mortgage or tax payments.
For this reason, people have long been investing in artefacts that have the potential to increase in value over a short period of time, often making considerable sums of money in the process. Gold, wine, art, stamps and coins are popular collector’s items, but you will need a small fortune to buy into these nowadays. Classic cars have outperformed all of these however, with yet another considerable price jump this year. The idea of a car stock market isn’t just for those looking to boost their pension plan, it’s been worked by many simply looking for a decent investment.
In the 1980’s the likes of the original Mini and the first Land Rovers were floating around on the cheap. These vehicles are now selling for ten times the value they were bought for. A decent Mini currently changes hands for over £10,000, with a complete rust bucket going for well over a grand. Even in decent condition during the 1990’s the Mini could be bought for as little as the equivalent of £500 today. A Series I Land Rover going for £2000 in 1987 is now worth up to £20,000 in decent nick.
The biggest value leap is the E-Type Jaguar – worth a few grand in decent condition back in the late 1980’s – now worth over £75,000. This price explosion is put down to the ever-growing desirability of the brand, with new models consistently boosting the repertoire. These vehicles don’t appear to be sliding back down the price ladder, but the problem is, who the hell has a spare £75K to fork out in order to buy them?
And what about insurance to keep them safe? Maintenance? Running costs?
The good news is that Classic Car Insurance is usually very affordable, with low premiums for low yearly mileage usage. We could fill numerous articles on insurance aspects, so we’ll leave you to shop around until we approach the subject next month.
Further good news is that older cars are often very, very basic with very few electronic aspects to trash your life. This doesn’t mean they don’t need maintaining however, and more complex designs won’t suffer fools gladly. Burn out the clutch on your old Jag and you’ll wish you’d never been born. The vehicles can’t simply sit in a shed or sit outside to be ignored and then sold on ten years down the line either, they need to be started, run and driven occasionally to keep all the parts working and oiled.
But, you don’t have to invest in something from the 1960’s or even the 1970’s. Vehicles that have been at rock bottom prices for the past 15 years are beginning to twitch just as the old Land Rovers, Minis and Jaguars did thirty years ago.
So, what if you’ve been toying with this idea or looking for a little something to bomb around in and then sell for the same price you bought it? The choice of car is endless – with Ford Sierras and Lancia Deltas still in reach for mere mortals, although not for much longer.
Not everybody is equipped financially to just start collecting at the high-end level, but buying one you can personally afford will bring enjoyment and likeminded petrolheads into your life – cars cut through all language barriers.