Can classic cars be a sound investment?

Written on the 20 October 2021 by Justin Harding - Fox Finance Group

Classic cars are vehicles older than 25 years that tend to symbolise their era. Investments in these iconic motor vehicles have grown in popularity, beyond the realm of the passionate owners of Collector's Cars, Muscle Cars and Vintage Cars.

It’s on record that classic car investors have achieved returns of over 450%! This type of gain is often long-term, where investors hold on to their prized asset until the money is right – often for decades.

Here’s a few recent examples of astounding Australian classic car sale prices

• A Ford GTHO Phase III Falcon just sold for $1.3M, a new record for an Aussie classic car sold at auction
• A 1996 Holden HSV VS GTSR went under the hammer for a massive $1M
• A Holden HSV GTSR W1 recently sold for $750K
• A Holden Torana SLR5000 A9X sold for $365K (A9Xs often sell for over $300K)
• A Nissan Skyline GT-R R34 V-Spec II can sell for over $200K

The numbers are also compelling for international classic cars

• A Ferrari 250 GTO sold for $70M
• An Aston Martin DB4 GT Zagato (2 VEV) fetched over $18.5M
• A red Porsche 930 Turbo Cabriolet can easily sell for over $650K

Before investing in a classic vehicle, be diligent and do your research. Here are some tips for the budding classic car investor.

1. Is it a unique or rare enough make, model and class?
2. Is the proper documentation available for the full life of the vehicle?
3. Is the car the right colour? Yes, this can make a difference!
4. Is the vehicle’s body and mechanics in good condition?
5. Is the classic car true to its original factory specs, or has it been modified?
6. After purchase, storage, care and insurance will become a priority to ensure the ongoing value of your classic car is protected.

If you can make an informed buying decision, and budget for the ongoing care of your asset, your classic car could provide a great return on investment in years to come.

Financing a classic car

Fox Finance Group has been helping its clients with Low-Rate Classic Car Finance Pre-Approvals for over 15 years. We can help you finance your new pride and joy, whether you are buying from a Classic Car Dealer or via Private Sale. Call our Classic Car Lending Specialists for more information on 1300 665 906 or learn more about classic car finance here