Is Buying A Classic Car An Investment? - Anglo Scottish Finance

Is Buying A Classic Car An Investment?

01st July 2022

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With the cost of secondhand vehicles hitting an all-time high, and demand for new cars growing, we wanted to understand if buying a classic car is an investment? and to do so we thought we’d get out of the office and ask the experts at London Concours, and honestly, what’s better than classic cars, champagne and. sunshine (sort of, thanks to British weather for the rain).

About London Concours

The 3-day London Concours event is held at the Honourable Artillery Company, London, and is described as “an automotive garden party at the heart of the city” and attracts car enthusiasts, luxury brands, and celebrities alike.

Brands attending the 2022 show included Lotus, who were highlighting their new all-electric Lotus Eletre, Bizzarrini who were highlighting their Revival Series, which will mark a new chapter in the company’s history and Alpine who brought with them their F1 car!

Is buying a classic car an investment – London Concours Opinions

While at the show we wanted to take the opportunity to learn just which classic cars visitors liked the most and discover what seasoned classic cars owners consider to be their top tips for purchasing a classic car.

Nicholas Mee

First up was Nicholas Mee. Nicholas is the founder and CEO of Nicholas Mee and Co, based in Hertfordshire. The company has been an Aston Martin specialist for over 25 years, selling and supporting all models from the classic DB2 to the DB7, Vanquish, DB9 / DBS and, V8 Vantage. Nicholas’ favorite classic car is an Aston Martin, and he had some wise words for anyone looking to buy a classic car for enjoyment or investment.

 

Peter Swain

Some people might assume that the classic car market values heritage over technology and a classic car can not be upgraded sympathetically, but that’s simply not the case, as attested by Peter Swain, founder, and CEO of RBW EV Cars. Peter and RBW EV passionately believe that the aesthetics of a classic car can be blended with technology to produce a classic car with all the benefits of a modern electric engine.

We talked to Peter about his favorite classic cars, and he told us his tips for purchasing a classic car.

Richard Hawken

Next, we spoke to Richard Hawken, founder, and CEO EMM London, or as they are affectionately known “the secret automotive service.” EMM offers a number of vehicle concierge services to its members including the global acquisitions and sales of high value-vehicles, red carpet arrival and chauffeur services, collection maintenance, and international transportation.

Richard spoke to us about how he and his clients consider classic cars to be an investment, and of course, which car is his favorite.

Andrew Jones

And finally, we spoke to Andrew Jones, the Deputy Territory Manager for Alpine. Société des Automobiles Alpine SAS, more commonly known as Alpine is a French manufacturer of racing and sports cars established in 1955 and revived in 2017 with the introduction of the Alpine A110.

Andrew spoke to us about the brand and his thoughts on purchasing vehicles from smaller manufacturers to get a unique experience.

Allan Hetherington

Our own prestige car finance expert also comments “We’ve seen the costs of vintage and classic cars increase in the past few years, despite the obvious disruption from covid, and it’s clear to me that investing in a classic car is a smart move. However, there are points to consider when choosing the right car to invest in, these include the condition of the car, the marque, and the rarity of the vehicle. If you get all these aspects right, you could find yourself with a goldmine!”

What the figures say

The figures seem clear, classic cars are a worthwhile investment for the future. In fact, according to the Knight Frank luxury investment index, the value of luxury goods grew 129% over the past ten years, and the Historic Automobile Group International (HAGI™) confirms classic car values increased by 3% in 2021, seeming to show the clear investment opportunity in well maintained classic and vintage cars.

One thing that was clear from the people we spoke to is the passion they have for classic and luxury cars. There was a unanimous agreement that one of the most important things to consider when buying a classic car was to buy what you love, regardless of whether it will be an investment or nest egg for the future. But if you do want to make an investment purchase, remember:

  • Low mileage is highly desired
  • Condition counts, any restoration work must be to a high standard
  • Buy quality marques
  • Rare models with low production numbers are best

So, what did we learn from this? Well, buy the car, enjoy the car and if it makes money, then it’s an added bonus!

Talk to our prestige team today if you are interested in buying a classic car to see what we can do to help.

 


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