Looking for a sound investment?

Investing in classic cars can be a rewarding passion in every sense

Published: March 2, 2013, 8:00 AM
Updated: November 22, 2021, 4:01 PM

CIAS - Ferrari 365GTB4, Daytona 512BB

If you're at that stage in life where you have some money to invest for the long term but would like to get some pleasure out of it too, you might want to consider classic cars as your investment vehicle.

Why cars? In a recent Financial Times article, a number of assets were analysed to see which gave the best growth over the last decade.

A high-end New York residential property had increased in value by 72% and similar real estate in Hong Kong had appreciated by 220%. That latter figure is said to be in line with the growth in value of fine arts, stamps and rare coins.

None of those investments, however, came close to the 395% return on classic cars which, along with gold, continued to be the market with the best investment growth, according to the Times.

Classic Ferraris are the trend leaders in that elite group, regularly occupying the top spots among the 10 most valuable cars sold at auction in recent years.

Two such examples include a 250 Testa Rossa, which sold at over $12 million and another that fetched a record $16,390,000. (All figures in US dollars.)

These extreme examples underline a broader trend for appreciation among all classic Ferraris.

As a further example, a long-wheelbase 1959 Ferrari 250 GT Berlinetta, sold for $1,195,691 in 2003. A similar car was sold in 2012 for $6,710,000 – an increase of over 400%.

A caution that the classic car market can be as volatile as any other and appreciation is never a sure thing. Plus you really have to know your cars, the market and the reputation of the seller to make a good buying decision.

But it's not often you can find a sound investment that sounds great too!