Richard Hammond discusses his love for classic cars on GMB
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Classic cars under a price of £50,000 have been revealed to be the most profitable investment when compared to property, gold and stocks. New data has found that more affordable classic cars made a 70 percent return on investment, on average, between 2019 and 2022.
But some classic cars could see owners pocketing more than they first anticipated.
Research shows that investing in a Ferrari F355 pre-pandemic would see a whopping 214 percent return on your investment now, on average.
Confused.com, which commissioned the data, compared classic cars with other popular investments, including the housing market, the FTSE100 and gold.
The property market grew by 19 percent between 2019 and 2022, but is less profitable than buying an affordable classic car or gold.
The value of gold only increased by 34 percent over the same timeframe, half the value increase of classic cars.
Louise Thomas, car insurance expert at Confused.com, commented on the data, saying drivers could benefit massively.
She said: “Classic cars could be a great way to invest your money, especially in the rarer makes and models.
“While the housing market, stocks and gold can all be unpredictable, data shows that classic cars seem to be in high demand.
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“But investing in a classic car isn’t always feasible in comparison to other investments, like the stock market.
“With the latter, you can start as small as you like when it comes to your finances. But for the average UK driver, the upfront costs of a classic car might be out of reach.”
The Porsche 928 saw the largest value percentage increase, behind the Ferrari F255, at 61.54 percent.
There are only 61,000 models, which attracts more than 1.26 million Google searches yearly from petrolheads.
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In May 2019, the classic Porsche cost motorists around £47,450, but exploded in popularity over the pandemic and was worth £76,650 as of January 2022.
Louise Thomas added: “When you also then consider the added necessities, such as maintenance costs and classic car insurance, it can add up substantially over time.
“These extra costs can become expensive, particularly when classic cars can be harder to repair or replace.
“This can also have a knock-on effect on the price you pay for car insurance, so it’s always worth shopping around to keep your costs down.
“If you’re thinking about investing in a classic car or you already own one, insurance for your classic car is a great way to protect your assets for the future.”
The Citroën 2CV is a classic vehicle which is not in short supply, with 380,000 still on the market, yet still attracts more than three-quarters of a million searches every year.
A significant 32.4 percent growth in value was seen from £28,288 to £37,449, highlighting the profits drivers could make.
Classic cars under £50,000 with the highest value percentage increase
Ferrari F355 – 213.85 percent
Porsche 928 – 61.54 percent
Datsun 240Z – 39.92 percent
Citroën 2CV – 32.38 percent
Plymouth Roadrunner – 17.55 percent
Pontiac Firebird – 10 percent
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