Classic car owners could see value of their vehicles 'double in price after restorations or modifications'

Classic car owners could see value of their vehicles 'double in price after restorations or modifications'

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GB NEWS
Felix Reeves

By Felix Reeves


Published: 07/04/2024

- 07:00

Updated: 23/05/2024

- 19:58

'Longer-term trends reveal that sizable profits await investors'

Classic vehicles are being lauded as a better investment than other popular items as collectors look to get their hands on the best vintage cars on the market.

New data has found that the classic car market has surged by 82 per cent compared to a decade ago, and by 52 per cent since 2019 alone.


Over the same time period, the FTSE 100 has only grown 20 per cent in the last 10 years and 10 per cent in the last five years, showing the popularity of classic vehicles.

Although there has been a slight dip in value for the classic car market in the last year, experts are predicting that collectors and motorists will see an uptick “in the next few weeks”.

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CLASSIC CAR

The classic car market value has grown by 82 per cent in the last 10 years

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Classic cars are also viewed as a better investment than historically popular items, according to data from the Automotive Data Evaluation Market Yield (ADEMY).

Investments including coins, furniture and jewellery have only grown by 56, 40 and 37 per cent respectively.

Dean Allsop, director at Clayton Classics, which conducted the research, highlighted how many drivers and petrolheads may be looking to get their hands on a vintage car in recent years.

People are doing this even during financial issues troubling many Britons, leading them to reconsider where they put their money.

He said: “Purchasing stocks and shares is often the obvious choice for many, but our research has revealed that, perhaps surprisingly, classic cars may be something to consider.

“That being said, after making the financial commitment of purchasing a classic car, it’s also important to invest in the performance and condition of the vehicle to ensure that it maintains its value.”

With classic cars, drivers will always run the risk of being forced to pay hefty sums for servicing, repairs, upgrades and even full restoration.

This can massively impact the amount they invest into their car as the upfront cost may be low, but they could end up paying more than the original price to bring it back up to scratch.

Despite the money they may pay for the restoration and upgrades, it could be beneficial when they come to selling the vehicle.

If the vintage car has new features like air conditioning, upgraded engines, new interiors and updated bodywork, the selling price and market value will increase.

Gianluigi Vignola, chief executive officer at ADEMY, added: “As is the case with any investment, purchasing classic cars is associated with a level of risk, with some models stagnating or dropping in value over time.

“However, even in spite of the market dropping in recent months, longer-term trends reveal that sizable profits await investors.

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Repairing a classic car

Modifications and restorations to classic cars can massively increase the value of the vehicle

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“This is especially the case for small to mid-capital cars worth up to £160,000, where it is not uncommon to find such models doubling in price after restorations or modifications.”

Classic cars are also becoming more popular among 38 per cent of wealth managers’ clients – second only to art among a list of 10 passion investments.

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