Bottles of wine, kitschy old posters, classic cars. Some things aren’t just fun to have around, they’re good investments, too. Now may be just the time to get into the classic car market, since values are on the rise. You just have to know where to look, what to look for, and what to expect from the market in the future.
The Classic Car Bubble
Since the late 1990’s up through 2014, there wasn’t a year when classic car prices as a whole dropped backward. 2015 saw some hesitation with prices mid-year reaching a 14 month low, but overall reported gains, though not as large as in years previous.
The key is, as with many things, in the hands of the super wealthy. When we’re talking about classic cars, we aren’t just talking restored ‘50s Cadillac Coupe DeVilles. We’re talking some exclusive stock – the things that were already top of the line luxury picks back in the day that, like the wine in cellars of the people who buy them, have only gotten more valuable with age.
A 1962 Ferrari 250 GTO sold at auction for $38,115,000 in late 2014, setting a new world wide auction record. Your grandpa’s ‘65 Pontiac GTO might look good and may even fetch you a pretty penny if you restore her up right, but it’s not going to come anywhere near the $40 million mark.
Multi-millionaires and billionaires, on the other hand, have the power to drive up prices to insanely high marks insanely fast, because they’re in a market that is exclusive to them, and thus that can be sustained as long as they have money. The more they want it, the more they’re willing to pay, and that’s created a bubble with classic cars that’s been hard to escape.
The less obscenely well-off collectors have benefitted from the interest of the uber rich, as well, though. As the luxury classic car market has exploded, so follows the larger classic car market, meaning that a few good project cars from a passionate home mechanic with even limited disposable income could not only recoup but add value to the refurbished pieces.
What To Look For
As with all market trends, the classic car investors have their favorites. Anything with that ‘50s flare is going to do well, and even more so if it has some chrome and can go topless. To that end, Cadillacs and Buicks are always going strong.
The muscle car market is making some waves, too, and with that late ‘60s and early ‘70s Fords and Chevrolets are gaining momentum. The re-emergence of Fiat on the international scene has their early models spiking in value, too.
Of course, nothing beats luxury. At the end of the day, ‘50s and ‘60s Ferraris, Jaguars, Aston Martins, and others are what the big dogs are hunting for, along with the exceptionally early, exceptionally rare, or otherwise simply ultra-refined. If you’ve got the cash to get in on the market, though, now is the time.