Now even the banks suggest you get yourself a classic car.
It seems as though not a day passes without someone sagely suggesting that classic cars are a great investment. Now even some German banks are agreeing with this sentiment although not everything that is old qualifies as a savvy investment purchase. Bloomberg reports that huge gains in certain classic German cars over the past few years have outstripped more traditional investments. One specific example they gave is the 683 percent increase in values for select Porsche 911 models over the past 13 years.
As you may have guessed, not every old car will benefit from this kind of increase and there are several prerequisites to consider before putting your life savings into a rusty old vintage car. Suedwestbank AG's asset management unit incorporates a vintage car expert, Jens Berner, who observed that interest in alternative investments such as wine, art and classic cars have risen sharply.
Classic car indexes are nothing new however. They generally focus on high-value classics that are rare and already worth far more than the average man in the street can afford.
Investment experts suggest you only look at cars worth more than $115,000 and they should not make up more than 10 to 15% of your portfolio. That may rule out a few tight budgeted hopefuls. Picking a model that has a large potential market is advisable and you should watch out for cars with dubious histories as non-genuine classics are worth significantly less than the genuine item. They also suggest you should lock your classic away to best help its chances of gaining in value.
So, while they can be a great investment, it seems as if the best returns remain the preserve of the ultra-wealthy. That's ok with us though, we prefer to drive our cars anyway.