Classic cars have become an increasingly popular and lucrative way of investing. With special models becoming rarer and highly collectible, the vast majority of investment-grade classic cars are only increasing in value. Hexagon takes a closer look.
According to the Knight Frank Luxury Investment Index, the value of luxury goods has grown 129% over the past ten years, The Motley Fool reported. Classic cars, rare whisky and wine, all experienced a rise in value of more than 100% over the past decade. Second to rare whisky, classic cars saw a yearly rise of 6% and an impressive 193% gain over the previous ten years.
In recent years, classic cars have outperformed other collectible investments such as stamps, and in some cases more traditional investments such as stocks and shares.
In a study by UK company Vanarama, they found that when compared with more traditional investments, key cars outperformed gold (45%), art (49%) and UK property (50%).
On closer inspection, certain models, such as the Volvo P1800 have grown significantly – research shows that the P1800, on average, added £21,569 to its price at auction in 2020, when compared to 2010.
Since the onset of the COVID pandemic, the world has undergone major shifts. Inflation has made a marked comeback. War in Ukraine has broken out and whilst economic growth is still resilient, but not assured, investors and collectors alike, are drawn to stores of value and ways to diversify their assets. When this objective harmonises with personal passions, as it does for many enthusiastic collectors, demand thrives.
Positive movement is being seen in the classic car market, and despite monthly fluctuations resulting from macro-economic conditions, we are pleased to report a particularly healthy Porsche market. Indeed, the Historic Automobile Group International Porsche Index (HAGI P) stands at 13.88 % ytd.
Credit Suisse, in collaboration with Deloitte, recently reported ‘Despite all its uncertainties, macroeconomic shifts, and geopolitical upheaval, 2022 started on a strong footing for collectibles’.
Hexagon Classics specialises in rare, collectable and future classics. To discuss making an addition to your collection or for a discrete conversation about parting with your classic or modern car, please do get in touch.