Investors turn to classic cars amid rock bottom saving rates and stock market uncertainty
- Over 1 in 5 people are now considering buying a classic car
- Majority of classic car buyers in last year were influenced by low interest rates and stock market volatility
- Just 15% of people have invested in stocks and shares in the past year
- Prices increase across the classic car market – with the Fiat Dino surging ahead by 113% in past year
Investors are increasingly turning to classic cars as an alternative source of investment, according to new research by classic car insurance broker Footman James, part of the Towergate group. The survey, which polled 2,000 UK adults, found that over 1 in 5 people are now considering purchasing a classic car as a new investment.
The findings come amid ongoing concerns of stock market volatility and with the Bank of England giving no clear indication interest rates will rise any time soon, investors are looking instead to classic cars as an alternative asset to invest in.
Footman James’ research found that almost 3 in 5 (59%) people who bought a classic car in the past year said that low interest rates on saving accounts influenced their decision, followed by stock market volatility (42%). While more than half (51%) of people who have purchased a classic car in the last 12 months said that a lack of trust or confidence in other investments influenced their decision to buy a classic car.
In a further sign investors are turning away from more traditional asset classes, just 15% of people have invested in stocks and shares in the past year, followed by property (9%), bonds (8%), fine art, antiques & jewellery (6%) and stamps (4%).
And it’s not just stereotypical middle aged men who are buying classics, as nearly a fifth (17%) women are considering buying a classic and almost 1 in 6 (16%) people between 25 and 34 years old now own a classic.
For those people that have invested in classic cars, they would have done well to pick a vintage Fiat Dino as the model has seen one of the largest increase – surging by 113% in value over the past twelve months. Other classics that have seen values soar include Lamborghini Miura (62%) as well as more modest classics such as 80’s favourite the Peugeot 205 (44%) and the traditional classic Morris Traveller (35%).
|Classic car||Value change|
|Land Rover Defender||43%|
|VW Golf MK1GTI||43%|
|Aston Martin DB4||19%|
Across all British car makes Aston Martin has seen the greatest increase, rising by 80% across all models over the past four years since 2012. Jaguar is in hot pursuit, rising by 68% over the same period.
|British Car-makers||Average increase in value since 2012 (across all models)|
Liam Lloyd from Footman James comments; “The classic car market has been picking up speed in recent years, with many people moving away more traditional investments – especially in the face of rock bottom saving rates.
“The popularity of mainstream television shows and car events has also introduced a whole new array of people to the world of classics, reflected in an uptick of younger and female buyers. Nowadays a classic car is no longer the just the preserve of middle aged men.
“For any buyer it’s important to keep a few top tips in mind. Look to buy the best, seek expert advice, don’t be afraid to ask questions and monitor the market. Also while it’s natural to focus on potential increases in value – it’s just as important to make sure it’s a car you actually like. After all there’s a reason it’s often called a passion purchase.
“Once you are the proud owner it is important you ensure your vehicle is adequately covered, as rising values – while of course positive news – could also leave you underinsured.”
For further information on Footman James visit the website footmanjames.co.uk