How to invest in classic cars
Philip Kantor, head of department for Motor Cars Europa at Bonhams, give us tips on making a mint out of classic car investment.
The past ten years have seen a steady appreciation in classic cars and, since the 2007-08 global financial crisis, more people are buying and selling than ever – its strength primarily underpinned by traditional markets in Europe and the USA. And there are certainly benefits in investing your money in a tangible asset like a motor car. Currencies are constantly changing, so if you have a car that appeals to an international audience, you can sell to the strongest market – so you’re not fixed to a specific currency.
TREAT IT AS A HOBBY
We have been following the collectors' motor car market since the late 1970s, and we've seen various peaks and troughs, but we don’t want people to treat cars like stocks and shares. It is – and should be – a hobby for keen enthusiasts and those nostalgic of glory days gone by. Obviously collectors do consider re-sale potential, but a car’s increase in value is regarded as a by-product, albeit a beneficial one, of the passion for the product.
BUY TO YOUR TASTE
Regardless of what any specialist says, the very best cars to invest in are the ones that really appeal to you as an individual. Whether open or closed, veteran or post-war, French, German, British or perhaps American – there's definitely a classic car to suit all tastes. Enjoy them, take care of them, and if you end up with a profit at the end of the day then that's just the added bonus.
Philip Kantor is head of department for Motor Cars Europe at Bonhams. For more information and for upcoming auctions, see bonhams.com.