The past ten years have confirmed the validity of the joke that classic car enthusiasts have been circulating when they talk about the investment value of these antique cars, as a report by the British economic newspaper Financial Times showed that the value of old classic cars has increased at a faster rate than achieved by the largest hedge funds in the world.
The newspaper referred to a study prepared by the “Knight Frank Luxury Investment Index” that dealt with the development of prices and the value of old cars with historical value that these cars have collected over the past ten years.
The study showed that if a person had bought a group of these cars 10 years ago, the return on his investment in them would have reached 161% within five years, then reached 467% after 10 years.
In contrast, the return on hedge fund investments amounted to 4.75% after five years and 7.83% after 10 years. If you reduce the investment period in classic cars to one year, the return will reach 17%, while the return on investment in hedge funds does not exceed 2% within a year.
For his part, the “Motor Trend” website, which specializes in auto issues, warned against an unexplained rush to buy old classic cars, hoping to achieve this great return, noting that this strong growth in the prices of old cars of historical value applies only to cars classified by experts. As “an investment value.”
At the same time; This strong growth in the prices of these cars has led to a significant increase in the supply of them, with the tendency of more collectors of old cars to offer them for sale to achieve great profits, which could create a state of ambiguity in this market that may push the prices to gradually decline with the withdrawal Investors from the market.