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Collecting art work, rare paintings or classic vintage cars is no longer strictly a hobby or competition among millionaires. Rare collections of classic cars are considered money-spinning investment propositions, with the prices of most classic beauties tripling in the last decade (even beating gold prices). With dwindling stock values, falling real estate prices and predictably smaller returns on cash investments, investors are now looking for new, rewarding investment opportunities.
According to a survey conducted by the Historic Automobile Group International (HAGI), the US classic vintage car market has grown over 16% in the last decade, overriding the growth of the stock markets. This new form of investment had guaranteed returns of 13.89% in 2011, even better than gold (which was just 9.93%).
Many auction houses across the U.S. are proof to the exceedingly high price hikes of these collectable beauties.
- The Gooding & Company auction house in Santa Monica, California, auctioned a 1962 model Ferrari 400 Superamerica Coupe Aerodinamico – one of the 14 custom classic cars built by the coach builder Pininifarnia, for $2.4 million, overriding its presale value of $2 million. Nine years back the same car fetched $432,000 at the Barrett Jackson auction in Los Angeles, entailing a whopping return of $ 2 million in less than a decade.
- RM auctions in Chatham, Ontario, sold a bright yellow, Daytona Coupe for $396,000. The same car had failed to invoke collector/investor interest when priced at $97,000 in 2003 at the Bonhams auctions Massachusetts, and in 2009 at an auction in Carmel, California, where it was priced at $ 210,000.
The real value of a classic vintage car is determined by the condition it is in and how well it has been maintained. A car with very minimal classic car restoration and maintenance can fetch a fairly high price. Variations made on the original car – a/c fittings or changing the seat cover – can bring down the antique value of the car by compromising its original design.
Owning a dazzling beauty (that also doubles up as a fantastic investment) involves continuous maintenance, and also protection from accidents and scratches. What every classic auto investor needs is excellent insurance coverage to help you keep your investment safe. Classic Auto Insurance policies include agreed value, roadside assistance and next term mileage rollover. For more information or to receive an instant free quote, visit our website!
About the Author
Drew Yagodnik is Vice President of Classic Automobile Insurance Agency, Inc. Classic Automobile Insurance Agency has been protecting collector, classic and exotics since 1992.