February 22, 2017
490% rise in the value of classic cars over the last 10 years
Many of us would love to own a classic car, so it’s not surprising that those with the resources to do so have a valuable or rare car tucked away in their garage. For many, their passion for classic vehicles has fortunately turned out to be an extremely worthwhile investment.
Investments in classic cars has been on the rise with an annual growth of 17% globally, making it the top-performing investment of passion, according to recent figures from the Historic Automobile Group International and Knight Frank. However, it’s still staggering to hear that over the past decade classic cars have increased in value by 490%.
Although most classic car collections are kept in museums or in specialist storage, they are also driven and taken to concourse events or raced in heritage rallies, sometimes at glamorous locations around the globe.
It’s not just classic cars, but motorcycles too that are worthwhile investments. The famous Brough Superior factory where the incredibly rare, powerful machines of the pre-war era (dubbed the Rolls-Royce of motorcycles) were built is just a 20 minute walk from Wilsons’ offices here in Nottingham.
Eight long-lost examples, believed to have been destroyed during the war, were discovered in a Cornish barn in 2015. Unveiled for the first time in more than 50 years, ‘The ‘Broughs of Bodmin Moor’ were offered at Bonhams Sale of Important Collectors’ Motorcycles at Stafford on 24 April 2016, realising staggering prices.
Ben Walker of Bonhams commented ”There is a strong market for unrestored, highly original motorcycles. Bonhams regularly achieves world record breaking figures for Brough Superior motorcycles, including unusual projects, which appeal to the enthusiast and collector of the brand.”
Some individuals own as many as 250 cars, with the largest collections worth in excess of US$200 million. Historic Ferraris have led the pack: in 2014, a 1962 Ferrari 250 GTO sold for US$38 million – the highest price yet paid for a classic car at auction.
The responsibilities that come with collecting classic cars and motorcycles are very much like collecting fine art. They need to be kept in the right conditions and looked after as damage to a vehicle – even if expertly repaired – can result in depreciation, very much like a rare painting. Matthew Pearce, European motor manager at Chubb, says: “Insurance will pay the cost of repair should a car sustain damage, but uniquely, Chubb will also cover any resulting loss of value.”
Our team here at Wilsons help many of our private clients with their classic car insurance, why not let them help you? Contact Jo Haynes.