Common wisdom dictates that nothing drops the price of a brand new car faster than merely driving it off the lot. While this maxim may be true with most new cars made in the past few decades, there are a surprising amount of exceptions. Cars that command a waiting list actually appreciate in value within just a few years.
Others are living legends, lithe testaments to the power of human engineering, imagination and art. Cars like the Ferrari 250 GTO age like a fine wine, except with a much higher appreciation rate. Indeed, reports show that certain classic cars can gain value at a remarkable clip, outpacing other luxury collectibles like coins, stamps, art and even real estate in terms of rate of return.
Catching wind of this, what began as a hobby of balancing collecting and investing is now quickly becoming a speculating man’s game. Like any investment, purchasing classic cars involves some amount of risk, but the rewards are sharing in history and the collective spirit of human invention as it blossomed in the 20th century. Learn why you should invest in classic cars and why this investment is a smart financial decision.
Cars as Art
Cars are only commodities so long as they remain readily available. Once scarcity becomes an issue, the differences between makes and models and trims grow into stark contrast.
For instance, Porsche made only about 4,000 911s in 1967 total, each one selling for around $6,000 at the time. Porsche also happened to make a fiberglass-bodied version called the 911R that year. Since the FIA rejected the design, only 29 examples were made. This seemingly small difference in design and an even smaller difference in 1967 retail price now translates to tens of thousands of dollars in difference in value.
Each vehicle specimen, especially the rarest ones, also stand on their own in terms of sheer aesthetic appeal. Designers like Pininfarina agonized over huge clay models, sometimes for weeks, discarding rejects and trying to get every centimeter absolutely perfect. The result is cars like the 1960s era Aston Martin DB4, which look objectively stunning to this day.
Attraction and rarity come together in these instances to create unique perceptions of value. Few other investment portfolio items can hold a candle to it, save maybe original works of art.
Cars as Engineering Marvels
If you were to get in a fender bender in a Pagani Huayra, you would be worried about much more than dented sheet metal. The reason is that a Pagani is absolutely packed to the seams with technology, which can include an active rear spoiler that generates an astounding 1,102 pounds of downforce at 115 mph. Any impact could damage such a delicate beast. Also, the Pagani would most likely be sporting carbon fiber rather than any sort of metal.
Rewinding back in time, other cars like the Lamborghini Miura were not only beautiful, but risk takers and pioneers of their time. That particular vehicle was the first production vehicle to utilize a mid-engine design design, for instance, a massive V12 at that.
Unique, forward-thinking features like these help drive up values while establishing the rarity of a vehicle in concrete, technological terms.
Creating a Portfolio of Classic and Collectible Cars
If the value, beauty, and ingenuity of collectable cars has already got you hooked, consider the following advice when starting your collectible portfolio:
The team at Meyers Auto Parts are sharing with you.