Classic cars are a prominent aspect of Australia’s vibrant car culture, deeply rooted in its history. Whether it’s the love for classic muscle cars or the admiration of vintage European luxury vehicles, there’s a significant appreciation for automobiles of all kinds. This passion for cars has made Australia a fertile ground for classic car collectors and investors.
Why Classic Cars Make Smart Investments
Classic cars have proven to be a unique and potentially lucrative investment opportunity for the following reasons.
Limited Supply
Classic cars are limited in number, and over time, many have been lost or damaged. This scarcity can drive up the value of well-preserved models.
Historical Significance
Certain classic cars hold historical importance, either due to their role in automotive history or because of famous owners. These factors can significantly impact their value, especially when the current owner has chronicled the vehicle’s history and invested a good deal of money to maintain the vehicle.
Tangible Asset
Unlike many investments, classic cars are tangible assets that you can enjoy while they appreciate in value. You get to experience the thrill of ownership while potentially seeing your investment grow.
Passion Investment
Investing in classic cars allows you to combine financial planning with your passion. It’s an investment that can be enjoyable and fulfilling. The drive to invest in a classic vehicle may have solid backing behind it.
In April 2024, the Australian Motor Heritage Foundation (AMHF) published a new Economic Value Survey to gauge Aussies’ financial movement in the historic vehicle circuit, with at least 6,000 members spread out across 800 clubs as respondents. They own at least 970,000 classic and heritage vehicles, an estimated 4.4 per cent of the 21 million vehicles operating in the country. The study defines a classic vehicle as aged between 15 to 30 years old while heritage vehicles are at least 30 years old.
The AMHF data found that each owner spent $10,240 a year on average for just one historic vehicle, slightly more than operators of daily-use vehicles ($9,068). The total expenses for the historic vehicles every year was tallied at around $9.92 billion. The huge expenses also added “horsepower” for the economy, with a total annual economic impact of $25.2 billion and brought in 78,671 jobs that generated a net total of $6.2 billion in salaries.
Building Your Classic Car Collection
If you’re considering investing in classic cars, below is a guide to help you start your collection.
Define Your Budget
Determine how much you’re willing to invest initially. Classic cars can range from affordable to extremely high-end, so setting a budget is crucial. Think of it this way, is a 1971 Ferrari Dino 246GT within your price range or are you happy with a Ford Falcon XB Fairmont with original factory parts?
Do Your Research
Research different car models and eras to identify which ones interest you the most. Consider factors like historical significance, rarity, and brand reputation.
Start Small
It’s wise to begin your collection with a few well-chosen, lower-priced classic cars. This allows you to gain experience and learn more about the market.
Seek Expert Advice
Consult with experienced collectors or appraisers who can provide insights into the market and guide your choices.
Attend Auctions and Shows
Attend classic car auctions, shows, and events to gain a better understanding of the market, connect with other enthusiasts, and find potential additions to your collection.
Tips for Classic Car Maintenance
Once you’ve built your classic car collection, proper maintenance is essential to preserve their value and enjoy a hassle-free ownership experience. Below are some tips.
Regular Maintenance
Schedule routine maintenance and inspections to address any issues promptly. Be prepared to spend considerable sums taking care of the vehicle. In the AMHF report, the evaluators found that amongst the $9.92-billion annual expenses for the vehicles, $1.9 billion was spent in mechanical issues, another $1.43 billion in parts and accessories, and $1.32 billion in bodyworks.
Proper Storage
Store your classic cars in a climate-controlled environment to protect them from the elements. A secure garage also helps to prevent it being targeted by auto thieves.
Conservation
Follow best practices for preserving classic cars, such as rust prevention, engine maintenance, and interior care.
High-Value Insurance
Invest in specialised classic car insurance that offers agreed-upon value coverage to protect your investment adequately. The AMHF report recorded $14.4m in annual insurance payments, or an average of $750 per vehicle.
Classic Car Brands to Consider
While the classic car market is diverse, some brands have consistently held or appreciated in value. These are a few classic car brands and cars worth considering for your collection.
Ford Mustang
An iconic American muscle car known for its style and performance, the Mustang is a fan favourite among classic car owners with its variety of models, especially the first generation from 1964-1966, some of which evolved into the Shelby GT350 and GT500. Some Australian car portals may have a range of mid-60s ‘Stangs ready for sale under $50k.
Porsche
Porsche sports cars, especially vintage 911 models, have a strong following and have appreciated significantly. Some iconic Porsches might be on the road in Australia, like a certain 959 that was imported in 2015; it created a sensation because Porsche never sold 959s Down Under, being a pure left-hand-drive model.
Mercedes-Benz
Classic Mercedes-Benz models, such as the 300SL Gullwing, are highly sought after for their timeless design and engineering. Some budding Australian collectors may be interested in trying to find the right-hand-drive W180 and W111 sedans made in Port Melbourne from 1958 to 1965.
Chevrolet Corvette
The Corvette’s sleek design and powerful engines have made it a classic American sports car. Some notable models to possibly aim for include C1s from 1958-1962 and the StingRay.
Ferrari
Ferraris have long been associated with prestige and performance, making them a staple in the world of classic cars. While many Ferraris in Australia may come from the more contemporary models like the Testarossa, FXX, and the Berlinetta Boxer, stranger finds have turned up – like a 1967 Ferrari 330 that was discovered in a Camden, NSW barn in 2021 after 50 years in storage, one of only 1,000 ever produced.
Aston Martin
Aston Martin has a special affinity with Australia because of the only Aussie to become James Bond – George Lazenby and the DBS from On Her Majesty’s Secret Service. Even then, Aston Martins from the 1960s are estimated to cost seven figures and are worth every penny, especially one of the 1964 DB5s best known in Goldfinger. Carsales once listed a 1964 DB5 with 77,000km mileage in 2019 for $1.25m.
Conclusion
Investing in classic cars is not only an exciting and enjoyable endeavour but also a viable path to financial security and asset growth. Australia’s rich car culture provides an excellent backdrop for classic car enthusiasts and investors alike.
If you’re considering entering the world of classic car collecting, remember to start small, do thorough research, and seek expert advice. If you build your collection strategically and take proper care of your classic cars, you can reap the rewards of this unique and timeless investment opportunity while enjoying the thrill of owning automotive masterpieces from a bygone era.
DISCLAIMER: This article is for informational purposes only and does not constitute official investment advice. QUICKLE has no working relationships with any automobile manufacturer or classic car collecting groups.
