According to them, over the last decade, classic cars have ranked as one of the most attractive luxury investments ahead of traditional items such as jewelry and art. Only fine wines – a 24 percent increase – appear to have proved a better investment in the last 12 months, with cars from Porsche, Ferrari and Mercedes-Benz generating the most increase in value over the last year.
“The classic car investment market has calmed down slightly over the last 12 months, but prices are still rising and it is modern classics – cars from the 1980s, 1990s and 2000s – that are one of the safest investments. These are the poster cars, the cars that graced bedroom walls and, in many cases, found fame on TV or in the movies. They are in hot demand from buyers who are now able to realize a dream,” said Darren Selig, CEO and Co-Founder at JBR Capital.
The company even lists a couple of cars with great potential over the next years, like the 1989 Mercedes 300SL (R107), 1998 Ferrari F355 Berlinetta (manual), 2007 Aston Martin Vanquish S, 2012 Porsche 997 Turbo S. Then there’s the mention of the BMW Z8 as well but when it comes to it, the room for improvement might be less than you think.
What makes the Z8 a collector’s item is the fact that a limited number of them were sold in the first place, along with its outlandish design and brilliant engine. That’s because you get a proper V8 under the hood, sourced from a BMW E39 M5, probably one of the best sounding mills the Germans ever made.
FIVE OF THE BEST: JBR CAPITAL NAMES TOP FIVE AUTOMOTIVE INVESTMENTS
Cars remain one of the best investments to yield growth over the last decade
JBR Capital names top five automotive investments, which are more affordable than you think
A future classic could be yours for less than jetting off to Edinburgh on a city break
Investing in classic cars can cost less than economy return flights from London to Edinburgh*, according to premium vehicle finance provider JBR Capital, which has identified five modern classics set to become standout automotive investments.
Classic car investments have the potential to yield growth of up to 457% for the right vehicle** and are among some of the best-performing investment opportunities available in the UK, while comparatively the cost of other forms of domestic travel can be steep.
Over the last decade classic cars have ranked as one of the most attractive luxury investments ahead of traditional items such as jewellery and art. Only fine wines (24% increase) appear to have proved a better investment in the last 12 months, with cars from Porsche, Ferrari and Mercedes-Benz generating the most increase in value over the last year.
Luxury property – traditionally a favourite among investors – has been hit by increased property taxes and the impact of Brexit, with premium land and property values going down and sales of luxury London properties collapsing by 86% during last year***.
Meanwhile, a 1989 Mercedes 300SL (R107), valued at around £35,000, can be financed at £386.33 a month over a 48 month term on lease purchase (see the representative example below), which is over £125 cheaper than Euro Traveller peak time return flights available from London Heathrow to Edinburgh*. JBR Capital’s finance specialists believe this is one of the models that should increase in value over the coming years.
The trend towards buying a classic car via lease purchase has increased in recent years, with JBR Capital finding that the use of finance in classic car purchases has become increasingly popular over the last five years. A more flexible way to own a classic car, customers pay an initial deposit and then make regular monthly payments, taking advantage of highly competitive rates. They then have several options at the end of the term, owning the car outright or refinancing and releasing equity.
Darren Selig, CEO and Co-Founder at JBR Capital, said: “The classic car investment market has calmed down slightly over the last 12 months, but prices are still rising and it is modern classics – cars from the 1980s, 1990s and 2000s – that are one of the safest investments. These are the poster cars, the cars that graced bedroom walls and, in many cases, found fame on TV or in the movies. They are in hot demand from buyers who are now able to realise a dream.
“Our advice is to always buy the best. Perfect condition with a full history, few owners and low mileage – or fully restored – is vital when it comes to investing your hard-earned cash. Most importantly though, buy a modern classic because you love it. Do all this and you will be rewarded.”
Selig has selected the following five vehicles which show great promise for increasing in value over the next five years and sets these out alongside a lease purchase scenario for each one in turn:
1989 Mercedes 300SL (R107)
1998 Ferrari F355 Berlinetta (manual)
2007 Aston Martin Vanquish S
2012 Porsche 997 Turbo S
2000 BMW Z8
1989 Mercedes 300SL (R107)
Representative Example
48 monthly payments of
£386.33
Final balloon payment
£15,750
Cash price
£35,000
Customer deposit
£7,000
Total amount of credit
£28,000
Total charge for credit
£6,293.84
Total amount payable
£41,293.84
Fixed rate of interest per annum
3.72%
Duration of agreement (months)
48 months
Representative APR
7.9% APR
Terms and conditions apply. Finance subject to status. Guarantee/indemnity may be required. 18s or over. Finance provided by JBR Capital Limited.
Darren’s verdict: “In our opinion, this is a great car for those interested in collecting a classic. Made famous by TV series such as Dallas and Hart to Hart, the R107 is in strong demand with values rising in recent years and showing no signs of slowing down. It’s an understated beauty for weekend motoring with the soft top down.”
Ferrari F355 Berlinetta (manual), 1998
Representative Example
48 monthly payments of
£718.96
Final balloon payment
£35,000
Cash price
£70,000
Customer deposit
£14,000
Total amount of credit
£56,000
Total charge for credit
£13,510.08
Total amount payable
£83,510.08
Fixed rate of interest per annum
3.9%
Duration of agreement (months)
48 months
Representative APR
7.9% APR
Terms and conditions apply. Finance subject to status. Guarantee/indemnity may be required. 18s or over. Finance provided by JBR Capital Limited.
Darren’s verdict: “The car that replaced the much-criticised 348, the F355 was faster and better in every way. In Berlinetta coupe guise, with a traditional Ferrari open-gate six-speed manual gearbox, it’s a textbook modern classic. For similar money you could get a 2005 Ferrari F430 – both boast a powerful V8 with terrific performance – but we think the F355’s iconic styling will see its status soar in years to come.”
Aston Martin Vanquish S, 2007
Representative Example
48 monthly payments of
£1,969.95
Final balloon payment
£85,000
Cash price
£170,000
Customer deposit
£25,500
Total amount of credit
£144,500
Total charge for credit
£35,057.60
Total amount payable
£205,057.60
Fixed rate of interest per annum
4.01%
Duration of agreement (months)
49 months
Representative APR
7.9% APR
Terms and conditions apply. Finance subject to status. Guarantee/indemnity may be required. 18s or over. Finance provided by JBR Capital Limited.
Darren’s verdict: “The last car produced at Aston Martin’s Newport Pagnell factory and a starring role in the 2002 James Bond movie Die Another Day mark the Vanquish out as very special indeed. Our pick is the Vanquish S, a genuine 200mph machine, of which less than 1,100 examples were made. While not cheap, we believe they are modern classics in the making.”
Porsche 997 Turbo S, 2012
Representative Example
48 monthly payments of
£927.95
Final balloon payment
£45,000
Cash price
£90,000
Customer deposit
£18,000
Total amount of credit
£72,000
Total charge for credit
£17,541.60
Total amount payable
£107,541.60
Fixed rate of interest per annum
3.94%
Duration of agreement (months)
49 months
Representative APR
7.9% APR
Terms and conditions apply. Finance subject to status. Guarantee/indemnity may be required. 18s or over. Finance provided by JBR Capital Limited.
Darren’s verdict: “Air-cooled Porsches have risen hugely in value over the last ten years, and now the spotlight is being shone on the more special water-cooled cars. One of these is the 997 Turbo S. Built in relatively low numbers, it combines 530bhp with everyday usability – it’s a high performance supercar that offers great investment potential.”
BMW Z8, 2000
Representative Example
48 monthly payments of
£2,077.41
Final balloon payment
£100,000
Cash price
£200,000
Customer deposit
£40,000
Total amount of credit
£160,000
Total charge for credit
£39,715.68
Total amount payable
£239,715.68
Fixed rate of interest per annum
4.02%
Duration of agreement (months)
49 months
Representative APR
7.9% APR
Terms and conditions apply. Finance subject to status. Guarantee/indemnity may be required. 18s or over. Finance provided by JBR Capital Limited.
Darren’s verdict: “Inspired by the stunning BMW 507 of the 1950s, the Z8 is one of the most beautiful BMWs ever made and now a highly sought after and appreciating roadster. Under the bonnet lies the same V8 as the E39 M5 while its interior is a masterpiece in quality and style. Values have doubled in the last decade.”
JBR Capital is the UK’s only independent finance provider dedicated to high end vehicle finance for supercars, classic, prestige, historic and racing cars. Finance options include hire purchase, lease purchase, equity release, refinance, auction finance and restoration finance. JBR Capital is also the exclusive finance provider for McLaren Automotive.
For more information on classic car finance, visit www.jbrcapital.com/classic-car-finance/.
Please note that the value of investments can go down as well as up and so investors could get back less than they invested in certain circumstances.
