Saturday, 5 May 2018
Classic cars generate the best financial return – new analysis of the collectibles market over the past century reveals.
According to a study by the London Business School and Credit Suisse, buyers of vintage marques would have 242 times their money since the year 1900, compared with purveyors of rare books who would earn just seven times their initial investment.
Classic cars are the best investment of all physical assets, the research says. Their worth draws comparisons to Premier Cru Bordeaux wine (65-fold return), jewellery (30-fold return), and postage stamps (20-fold return).
Collectibles also prove to get better returns than savings in bonds or cash, the study finds.
The Top Index
The figures adjust for inflation so show the investment in real terms.
The Historical Automobile Group International (Hagi) Top Index was used to compile the results. The index lists prices of 50 models from 19 different marques.
Using its notional figure of 21,000 actual cars, they have a “market capitalisation” of £13 billion, or £619,000 a car, The Times newspaper suggests.
Although the market for classic cars can fluctuate, the peaks and troughs are much less volatile than stocks, experts say.
“What we have seen in the past is that when the (stock) markets get weird, people invest more in classic cars as they are more stable — and tangible,”
Recent figures suggest an MG A, costing £14,900 in 2006 has increased by 47%.
Meanwhile a Lancia Aurelia B24 “Spider”, with only 761 models ever produced, has seen a 450% increase in the last decade, rising from €200,000 in 2008 to over €1.1m this year.