At a time of unknown economic security in Western Australia, there is one market that has proven fruitful in its return on investment (R.O.I) of late; classic cars.
Investing in classic cars is one luxury market that Australians are able to dip their pockets into and one that can earn them a fine buck in return.
Data has shown that those who have been investing in classic cars experienced a 17 per cent return in the past 12 months and almost 500 per cent over the past decade.
According to the Historic Automobile Group International Top Index, classic cars outpaced the stock market as investments. Check out the healthy growth curve in the graph below.
In a recent local example, a classic car investor recently put his 1965 Ford Cortina Mk1 GT500 up for sale with auctioneers Shannons who put a guide price of $65,000 to $75,000 on it.
He originally purchased the vehicle a decade ago for $17,000 and spent $20,000 along with plenty of hours restoring the machine to its former glory.
That’s almost 53 per cent potential return!
Besides the appeal of a healthy economic return, it’s also the history beneath a classic car that continues to shape interest in this market.
It may rekindle memories of: a less complicated yesteryear, an era of ‘firsts’, race winning feats, auto-engineering wonder. Or it could be the simple delight one finds in pre/serving today’s generation with model classic cars.
It’s the intrigue of classic cars that will continue to drive the market.
But for how much longer?
For the most part what is considered classic is ‘in the eye of the beholder’.
Eventually every car will fall into the classic category, because it will eventually be considered old or collectable and there will always be someone seeking to own one.
Fabcar is particularly involved in performance, imported and luxury vehicles.
Fabcar not only sells classic cars, but can assist in importing classic cars.
Currently for sale: A beautiful 1970 Jaguar E-Type 4.2. For more details click below.
Here are some Fab tips for importing classic cars:
- Check all body panels for signs of corrosion/rust or bubbling in the paint work. One or two small areas can be okay but anything more can result in costly repairs! Wheel arches are a common area and the vehicle chassis itself can be very costly to repair.
- Take time in running through the workings of interior switches, electrics and lights. Where older vehicles have a lot less electrical elements than modern vehicles, the wiring and sourcing of replacement parts can often be a lot more involving!
- Check condition and expiration dates of the tyres (including spare). Visually they may look fine with plenty of tread but the tyres themselves may have expired and not show any age related signs of cracking/perishing in the sidewall. A full set could take some time and a few dollars to source.
- In addition to checking the overall paintwork condition, take a paint thickness/depth detector which tells you the thickness of the paint on the car. Most classic cars will have had a respray in their life and you will want to know how well this has been done and/or if it requires doing again. For approximately $30 it’s a handy tool to have!
- Service records, mileage recordings and vehicle descriptions. Pay particular attention in checking this paperwork. Make sure all the engine/VIN numbers match up, mileages are consistent with dates and plenty of services have been carried out over the years. Records of recent replacement parts are just as beneficial as older records with service history as a whole, adding a lot more value to a vehicle than a similar vehicle without this information.
With over 40 years automotive experience, Fabcar pride themselves on exceptional service.
With Finance, Insurance, Parts Guarantee, Trade-ins welcome, Specialist Servicing, Australia Wide Warranty and Roadside Assistance all part of the commitment, you can buy in complete confidence.
Isn’t it time to drive something different?