Last Saturday I took a trip to the Warwickshire Exhibition Centre where the Classic Car Auctions were holding their biggest auction to date.
Lets just say for any car enthusiast this is a great day out. All sorts of cars were under the hammer from old Minis, Porsches, a Fiat Barchetta, old Mercedes Benzs and BMWs. There was even an old Aston Martin (which needed some tender loving and care) on offer. It was a real eye opener.
On a more serious note, for many people that were bidding on the classic cars it was more about finding a good investment.
With the U.K interest rates so low at the moment, I can see the attraction of investing your money in a classic car.
Like any car auction I would advise you to do your homework first. Know what you are looking for in terms of condition. Check whether it has been professional repaired/restored, has rust, how many owners, what the market is doing and how much you are prepared to pay etc. A real important thing that you must also decide on is, if the car you are thinking on buying, or investing in, is going to be a long or short term investment. Meaning are you looking to sell it on quickly or will you keep it for many years before you sell it?
Now to the fun bit.
Here are some examples of cars that went under the hammer:
1991 Audi Quattro Turbo 20V only 32,233 miles on the clock. Estimate price £35,000 – £40,000
Sold for £65,500
1988 Porsche 911 Carrera Supersport, 31,500 miles. Estimate price £60,00 – £70,000
It sold for a amazing £90,000
1994 Porsche 928 GTS, 94,000 miles. Estimate price £30,000 – £35,000
Sold for £36,000
2005 MG ZR105, only 759 miles on the clock. Estimate price £5,000 – £7,000
Sold for £5,800
(Which I think is a steal).
A couple of thoughts were going though my mind………
Is this market approaching the top of the curve?
Could there be a crash?
I recall something a customer said to me from years ago whilst taking delivery of his then new Porsche 911 (993). He said to me with a wry smile on his face.
Buying a 911 is just as good if not a better investment than investing in gold.
Judging by the price of the 1988 Porsche 911 Carrera Supersport that sold for £90,000, he could be right?
On a final note, I think this way of investing can be fun. You can clean it, drive it, look and appreciate it…………….. Which is something you can’t do with stocks and shares, unless you like looking at computer spreadsheets.