The affordable classic cars that are a better investment than gold

Monday, 23rd November 2020, 2:00 pm
Updated Monday, 23rd November 2020, 2:00 pm

Buying a brand-new car is sometimes seen as a mug’s game. The moment it leaves the dealership it starts to lose value. And in many models’ cases that never stops.

But once cars reach a certain age or scarcity some suddenly reverse this process, rising in value as they go from just “old” cars to classic car status.

Whether it’s because of their performance, their looks, rarity or nostalgia among buyers, some classics enjoy a renaissance. If you invest wisely you could see a significant profit, in fact, according to new research, if you pick the right model and could see returns twice as high as if you’d invested in gold.

A new study has revealed that over the last 10 years a host of affordable classic cars have significantly outperformed gold in terms of investment opportunity, in some cases almost tripling in value while gold has risen by “just” 50 per cent.

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Vanarama looked at 10 affordable classic cars - models that cost less than the £15,000 average price of a second-hand car in the UK - and tracked their value between 2010 and 2020 using data from classic car specialists Hagerty.

On average the models, ranging from a 1960s Volvo P1800 and 1970s Volkswagen Beetle and a Land Rover and Mazda RX-7 from the 1980s, increased in value by 97 per cent over 10 years. Gold, on the other hand, has risen in value 50 per cent. Over a five-year period, cars were still well ahead of the precious metal, worth 33 per cent more compared with gold’s 20 per cent increase.

The best performing of all the models was the stunning Volvo P1800 from 1961, which has risen in value by £21,569, or 238 per cent in the last 10 years.

Close behind was the 1981 Mazda RX-7, which jumped 239 per cent in the same period - an increase of £7,628.

(Data: Vanarama)

Perennial favourite the Volkswagen Beetle also more than doubled in value by £10,285, while the iconic Land Rover Defender 110 enjoyed a 113 per cent (£15,464) increase.

The study also looked at how classic cars have performed compared to other common investment areas and found they substantially outperformed art and property in terms of return, both of which enjoyed around 50 per cent increases.

A spokesman for Vanarama commented: "The top five cars in our research all gained more value over 10 years than traditional investments including precious metals, art, and property. However, as with the other approaches, it's worth noting that unless you strike it lucky – the best return you're likely to get is if you store the vehicle - making sure to keep it in good nick - over a longer time."