Almost all car enthusiasts dream of owning a classic car. They look fantastic, are fun to drive and can even be a sound investment. According to Coutts, the value of some classic cars shot up 257 per cent between 2005 and 2013. When you consider you don’t have to pay Capital Gains Tax on any profit you make from selling a classic car, it could be a more lucrative endeavour than some other investments.
If you’re looking to purchase a classic car, you’re going to need some tips about what to buy and how to protect it. Our guide should help!
Which classic cars are the most valuable?
When it comes to classic cars there’s a huge variety to choose from, but which ones are going to hold their value? It’s a difficult question to answer, as the market could change at any time. The following tips should help you identify which cars are likely to turn a profit, though, and which purchases to ultimately make:
Look for rare cars with an interesting history
Everyone loves a good story, and when it comes to cars a story instantly adds value (as long as you can verify its authenticity, of course). Classic cars that were once driven or owned by someone famous, were used in an important race or are unique in some way are only going to get more valuable over time.
Rare cars of which only a few models were made are also likely to be worth more as the years roll by, especially as there’s a good chance many of the models will disappear, upping the price of the remaining cars. Look out for special editions of modern cars and consider investing in them, as they could prove to be very valuable if you’re willing to wait.
A good example of a potential future classic is the special edition Trophy Renaultsport Clio 182. It currently sells for between £4,000 and £6,000, but since only 500 were made in the UK and it’s considered to be one of the greatest hot hatches of all time, that sale price could soar in a decade or so.
Consider the additional costs
Some classic cars are going to be harder – and more expensive – to upkeep than others. Does the car need to be restored? Are the parts easy to get a hold of? How much does it cost to run and insure? Will you need to invest in additional security features to keep the car safe from thieves? These are all questions you should answer before making an investment, especially if your goal is to ultimately make a profit.
Buy what you love
Think about the cars you’ve wanted to own for as long as you can remember and do your research. Whether you’re likely to make a profit or not shouldn’t really matter, as you’ll be buying the car because you want to enjoy it, which is what driving is all about! If you do end up selling it for a nice sum in the future, consider it a happy bonus.
How to protect your classic car from theft
It will come as no surprise that classic cars are targeted by thieves, as they know there’s a good chance they could be very valuable. To keep your pride and joy safe, follow our tips below.
Always park in a safe and secure location
If you’re lucky enough to own a garage, make sure you use it! Not only are garages more secure than parking on the street, using one will help lower the insurance premium on your classic car, too. If you don’t have a garage, make sure wherever you park is well-lit and consider purchasing a security light if it isn’t.
When you’re out and about, stick to secure car parks whenever possible – even if it’s the more expensive option.
Fit a car alarm
As you know, older cars are typically rather lacking in the security department! A car alarm is inexpensive and easy to fit (depending on the car) and can be a great deterrent. It is, however, most effective when used in conjunction with other security measures.
Invest in mechanical and electronic immobilisers
Immobilisers are another form of deterrent – one which stops the thief driving away with your vehicle. Mechanical immobilisers can be fitted to steering wheels, pedals and gear sticks to lock them into place. They can be removed with force by knowledgeable car thieves, but they will slow them down at the very least.
Electronic immobilisers disable the engine, and have been compulsory in vehicles since 1998, so your older classic car may not have one. The only way a thief can start the engine is by having the key – so ensure you keep it in a safe place and not right next to the front door where a thief could access it. In 2013, the percentage of car thefts involving keys rose to 90 per cent, so an immobiliser may not be enough.
Install a tracking device
If a thief manages to get past all your deterrents you need a back-up plan. A tracking device will reveal the location of your car to the police, enabling them to locate your vehicle quickly. Our TRACKER devices have a very high success rate: 95 per cent of all stolen vehicles are returned to their owners within 24 hours.
No matter which classic car you ultimately decide to purchase, we hope you have fun with it. Just remember that protecting your investment is incredibly important, especially if it’s valuable to you, whether emotionally or financially.
For more information regarding our car tracking devices, click here
or get in touch with us
today – we are happy to answer any questions you may have.