Are Classic Cars Still a Good Investment?

Classic cars, few things stir up nostalgia and admiration quite like them. Whether it’s the low growl of a ’67 Mustang, the sleek lines of a vintage Porsche 911, or the loud exhaust of the 80’s Hot hatch, these machines are more than just metal, they’re rolling time capsules. Beneath the polished chrome, deep paintwork and big boy exhaust lies a very modern question, Are classic cars still a smart investment?

The Romance vs the Reality, Are Cars Good Investments?

Let’s be honest, most people don’t get into classic cars for the spreadsheets. It starts with a memory, a childhood wish, back to a time where they could have only dreamed of owning such an iconic classic car. If you’re looking at a vintage, classic or an 80’s hot hatch vehicle with one eye on the odometer and the other on your portfolio, it’s worth stepping back and looking at the broader picture…

Is a Classic Car a Good Investment Today?

Over the past two decades, some classic cars have seen astronomical returns. Think Ferrari 250 GTO or a rare Aston Martin DB5. The 80’s Fast Fords at Auction houses have certainly seen jaw-dropping bids, and some cars have outperformed traditional investments in some cases.

The RS500, being one of them, it is the most sought-after Cosworth, with a 1987 version with just 5,192 miles on the clock selling for a world record £596,250 at Silverstone Auctions (now renamed Iconic Auctioneers) in February 2023.

Who would have thought it.

But here’s the catch: not every old car becomes a collector’s item. While top-tier classics might climb steadily in value, the average classic car has a much more modest trajectory. Maintenance costs, insurance, storage, and even just keeping the thing running can eat into any gains.

However, it’s for the genuine love of cars that keeps classic car owners hooked.

Supply, Demand, and Demographics

A key factor in classic car value is nostalgia-driven demand. Baby Boomers fuelled much of the collector car market’s rise, but as that generation ages, there’s a natural shift happening. Gen X and Millennials may not value the same cars, or any cars, in quite the same way.

That said, 80s and 90s models (think Toyota Supra’s, BMW E30s, Ford Rs Cosworth’s or early Lamborghinis) have been gaining steam. The collector car market isn’t disappearing, it’s only just evolving.

What Makes a Classic Car a Good Investment?

If you’re thinking of diving in and buying a classic car, look for:

• Rarity, Limited production runs tend to hold value.
• Originality, Low mileage, matching numbers, original paint, and stock parts matter.
• Provenance, Celebrity ownership or a strong documented history adds appeal.
• Condition, “Project cars” are tempting, but can be a lengthy process and can come with their own problems however they are far more cost effective than parting with a substantial amount of money all at once. Project cars can last as long or as little as you want them meaning you can then be in control of spreading the cost over time.

Most importantly, buy what you love. A great classic car might never double in value, but if you enjoy every mile behind the wheel, the return on investment is there in a different form.

Are Vintage Cars a Good Investment?

While the terms “classic” and “vintage” are often used interchangeably, strictly vintage cars, those from older eras, carry their own unique market dynamics. So, are vintage cars good investments? The answer depends heavily on the specific era and the vehicle’s historical significance. Pre-war vehicles often appeal to a very specific, niche collector base. However, beautifully restored vintage models can yield impressive returns for the right buyer. If you are asking if vintage cars are a good investment, the key is preserving their absolute authenticity, as any modern modifications can severely damage their historical value.

Finding the Best Classic Car for Investment

Pinpointing the best classic car for investment requires looking at emerging market trends rather than just established million-pound auction staples. Right now, the best investment cars are those catching the eye of the younger generation entering the collector market.

Top Contenders for the Best Investment Classic Cars

If you want to know where the market is moving, keep an eye on these categories:

• Modern Classics (80s and 90s): Fast Fords, as mentioned earlier, are soaring. The hot hatches of the 90s are rapidly becoming some of the best investment classic cars because they represent the poster cars of today’s buyers.
• Accessible Sports Cars: Vehicles like early Mazda MX-5s, clean Porsche 944s, or well-maintained BMW Z3s are proving to be fantastic entry-level investment cars.
• Limited Run Models: Any vehicle with a short production run, a manual gearbox, and a naturally aspirated engine is slowly climbing in desirability.

In Summary

Classic cars can be a good investment, but they’re far from guaranteed riches. So, what’s the best approach? Treat it like a passion project with potential upside. If you happen to make a little money along the way, that’s just the icing on the cake.

If you need help with classic car restorations, maintenance and servicing, get in touch with us today.