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Classic cars ramp up their value as investment opportunities
In the last 30 years, the values of classic cars have risen significantly, and cars are now seen as a solid investment opportunity in the current austere financial climate. Previously, the market was driven by those who bought the car to work on as a hobby or to drive occasionally.
The rise in the value of these vehicles was usually as a result of their status as 'automotive art'. However, thanks to the current volatile economic climate, classic cars are now considered serious investments along with art and vintage wine.
At the Goodwood Revival last week, Bonhams auctioneers sold off sought-after models for very big money. A Rolls Royce Silver Ghost went for £485,500 and a Ferrari 365 GTS/4 Daytona sold for £595,500.
Dietrich Hatlapa of the Historic Automobile Group International told the BBC that visible assets are currently seen by people as a safe bet and: "the rising price of commodities like gold offers separate proof of this."
This growth in the classic car sector has also been boosted by emerging markets in the East. Middle Eastern and Asian car enthusiasts are now snapping up classic Western cars as they do not depreciate in the drastic manner that a new Lamborghini would. Hedge funds managers are also looking at this currently lucrative market, with an eye for a big pay out further down the line.
While most of use can't afford a classic car insurance premium, let alone the actual Ferrari or Jaguar, the lower end of the market (MGs, Triumphs, etc) is still within reach.
With proper research, average folks can pick up a decent vehicle such as an MGB Roadster that will accrue value and avoid capital gains tax when it comes time to be sold on.
"If you've got £5,000 sitting in an ISA, why not put that money into a classic car? You'll get a lot of pleasure from it and won't lose money," classic car analyst Dave Selby told the BBC.