Classic cars rise in value

[effbee584]

For those of you lucky enough to own a classic Mercedes, have a look at this ............Historic Automobile Group

 

[kth286]

you can see that as stock markets fell the money moved into rare classic cars.

Now that markets are well on the go again it will be interesting to see how the cars fair.

The big advantage with cars is NIL CGT on realisation of gain on sale.

 

[geoff19]

you cant drive your stocks and shares.and a classic car looks better than a bar of gold.

 

[Charles Morgan]

A bar of gold on the other hand doesn't need insuring, maintaining and driving, nor does it blow up and need new bits on a regular basis.

The inherent problem with classic cars is that they are (as an investment class) extremely illiquid, much of the increase in value is captured by the turn taken by those who sell it for you (plus all the titivation needed to sell) and many have been restored in the period prior to sale, so how do you capture that in the calculation of gain if the selling price, though higher, doesn't cover costs (it happens all the time). In most cases also, the rarer the car, the considerably greater the cost if it needs something done.

Also, rather like fine wine investment, beware the halo given by the top end of the market - a Ferrari 250 GTO or Gullwing may well have gone through the roof, doesn't mean to say a Ford Popular or a 190 will.

Finally, when the general populace talk about it, it is possibly after the serious punters have bolted. Beware yet another set of unregulated spivs flogging schemes - they've done it in wine and in land parcels, don't expect anything different.

I have two classics. I would love to get rich off the back of owning them, but so far it's been more shirt off my back territory. Beware..

Also, beware lines on graphs - I spent years doing this sort of thing. Find the most suitable benchmark to show outperformance, neglect to include dividend re-investment in the index benchmark, and lo, you can make something really outperform.

 

[Palfrem]

Also, beware lines on graphs

Best advice ever!