Classic Car Investment

Classic Car Investment

Classic Car Investment

Classic Car Investment
It comes as no surprise over the last decade when banks have performed so poorly that canny investors are looking for alternative methods of increasing their capital. Anything to beat the poor interest rates available from savings accounts and traditional investments.
One of the most interesting to emerge recently is classic car investment. Not only can you invest in something that carries great history, looks fantastic and brings a certain cachet of glamour, but you get a good rate of return.
The right classic car can bring between 4 and 10 % return with some prices rising even faster than that. Classic cars have out performed gold in the last decade. Best of all there is no Capital Gains Tax to pay on the investment as they are exempt.
Classic cars are exempt because they are classed as passenger vehicles and as wasting assets, so the government sees then as depreciating. As with any tax break, it would be wise to keep an eye on any proposed changes as the government gets wise to a potential missed source of revenue. But for now any gains are pure profit.
Not to mention the kudos of owning a stunning and unique classic car, and there are many around at all sorts of price categories, you don’t have to be a billionaire, though you do need somewhere safe to keep it in the pristine condition that such car requires.
This week saw the highest price ever publicly paid for a classic car. The Ferrari Testa Rossa from 1957 was sold by Tom Hartley Junior for just over £24.1 million, beating the £22.5 million exchanged for the Ferrari 250 GTO in  2012.
They are many factors that contribute to the value of a classic car.
-The car brand, its history and its current and future standing.
-The history of the car, races won, famous owners, personal story.
-The originality of the car, have many pieces been replaced? Some cars have been so restored they are more kit than original. This counts, the more original parts it retains, the better its value.
-Its provenance is vital , potential buyers or dealers will need to be able to reliably trace its background with little or no lapses.
-Consult the experts to know which will appreciate in value, and let head rule over heart if at all possible.
There are many classic cars but only a small proportion of them fall into the category of a wise investment. It has to come from that stable of rare and momentous moments in car history and be much loved by the true car aficionados who truly value the driving experience that a great piece of motoring magic can bring.