Investors are increasingly turning to classic cars as an alternative source of investment, according to new research by classic car insurance broker Footman James.
The survey polled 2,000 UK adults and found that over 1 in 5 people are now considering purchasing a classic car as a new investment.
The findings come amid ongoing concerns of stock market volatility and with the Bank of England giving no clear indication interest rates will rise any time soon, investors are looking instead to classic cars as an alternative asset to invest in.
Footman James’ research found that almost 3 in 5 59% people who bought a classic car in the past year said that low interest rates on saving accounts influenced their decision, followed by stock market volatility 42%.
While more than half 51% of people who have purchased a classic car in the last 12 months said that a lack of trust or confidence in other investments influenced their decision to buy a classic car.
In a further sign investors are turning away from more traditional asset classes, just 15% of people have invested in stocks and shares in the past year, followed by property 9%, bonds 8%, fine art, antiques & jewellery 6% and stamps (4%.
And it’s not just stereotypical middle aged men who are buying classics, as nearly a fifth 17% women are considering buying a classic and almost 1 in 6 16% people between 25 and 34 years old now own a classic.
For those people that have invested in classic cars, they would have done well to pick a vintage Fiat Dino as the model has seen one of the largest increase – surging by 113% in value over the past twelve months. Other classics that have seen values soar include Lamborghini Miura 62% as well as more modest classics such as 80’s favourite the Peugeot 205 44% and the traditional classic Morris Traveller 35% while the Triumph Stag improved by 8%.
