Classic cars : better than life pension?
Savings : Classic cars better than life pension
When the Mercedes-Benz 300SL Coupe was sold at Essen’s Vintage and Classic cars show, it was common knowledge that it changed hand for a million €. First commentators were quick to hark back to the hype fromt the end of the 80’s, when prices for Ferraris and other classic cars sky rocketed under speculators pressure. Prices plummeted at the beginning of the 90’s when the bubble burst.
A STABLE UPWARD TREND
The pessimists saw in that purchase the beginning of a collapse in prices in a near future. Though the experts are certain there are no parallels with the bubble created by speculators who didn’t know anything about historic cars 20 years ago. The classic car market shows a stable upward trend. And the sales of that 300 SL in perfect condition for one million € is the peak of this trend.
The Historic Automobile Group (HAGI) founded by Dietrich Hatpala in 2007 is a company operating with a small number of specialists and has acquired a good reputation in this industry. HAGI obtains sales figures from car dealers and auctions all around the world that ensures authentic numbers.
On this basis, HAGI draws up analysis such as the Top index available on www.historicautogroup.com for registered users. The figures relate only to cars above 100.000€.
A 27-FOLD INCREASE IN VALUE
One of the key finding of HAGI: “The index incorporates tens of thousands of evaluated sales of high price classic cars. It revealed a 27-fold increase over the past 20 years.” With the support of Daimer’s Mercedes-Benz Classic unit, they draw up the MBCI (Mercedes-Benz Classic Index).
Each factors, such as unit produced, existing specimens, and number of sales, is weighted into the calculation method and all play a role to determine the value of the car. These results make clear for every that Mercedes-Benz classic cars are the top runners when it comes to increase their value investor in the long term.
BEWARE OF COUNTERFEITS
Only high quality cars are included in the MBCI. Indeed, a car for less than 500.00€ will not generate enough value but to cover the running cost. The asset yield is then, the driving enjoyment.
Though anyone buying the first Classic Mercedes as an investment opportunity can easily be duped by “cosmetically enhanced” vehicle or may even buy a faked vehicle.
An expert assessment is highly recommended for the purchase of a high value car.
When interpreting the MBC Index it is wise to note that advice “Past performance is no guarantee of future performance”
Exciting prospect lie ahead: China who has ruled out the import of second hand cars and classic cars wants to ease the entry barriers, opening up on a new market where demand is higher than offer. A rumour says that 20 300SL Coupe are already bunkered at Singapore customs, waiting for immigration to China.
As a conclusion, Mercedes 300 Gulwing is a good example of the recent increasing, this graphic shows that the most important is to choose the right car at the right time :
3 cars 3 different growth…. 300SL, Jaguar E Type, Aston DB4
