The key to buying classic cars
Returns from classic cars have been seriously turbo-charged in recent years – but don't expect to get rich quick.
Returns from classic cars have been "seriously turbo-charged" in recent years, says Patrick Collinson in The Guardian. Private bank Coutts' index of "passion investments" shows that, in the nine years from 2005 to 2014, classic cars made a 399% gain. No one expects such big returns going forward if you buy highly desirable and collectible cars, such as the Triumph Stag (pictured), or luxury motors at the top end of the market.
But you might get lucky if you buy "emerging classics" affordable cars from the 1970s and 1980s that nostalgic middle-aged men are starting to snap up. Austin Allegros and Princesses (even Reliant Robins see below) are getting ever harder to find, which might boost prices.
Don't expect to get rich quick, however. The late 1980s saw a spectacular boom then bust in classic car values and we could be at the top of the market. The best advice, according to specialist website ClassicCarsForSale, is to "listen to your heart but engage your brain" before buying. Get it right, stay within your budget, and you'll have every chance of becoming a deliriously happy classic car owner if not necessarily a rich one.
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Why Jeremy Clarkson loves the Reliant Robin
They have a "rorty-sounding" 848cc engine, a "snickety gearbox that makes you lament the passing of the proper manual", and it's light and nimble to drive. Yes, it's unreliable and bits are liable to come off in your hands. But it's something more than a car it's more like a family pet. One you'll grow to really love.
ClassicCarsForSale.co.uk had a few Robins for sale from £950 as MoneyWeek went to press, including a replica yellow Del Boy van for £4,500.
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