Demand for Classic Cars at All-Time High

Posted by Steve White on Oct 17, 2012

The demand for classic cars has reached an all-time high, because they are a class of commodity that seems to offer sure returns for investors. According to the HAG (Historic Automobile Group) Top Index, classic cars have been experiencing year-on-year compound growth, and they move independently of other areas of investment.

John Collins, who founded leading Ferrari dealer Talacrest, said that the demand for classic cars will continue to grow because cars are tangible and usable things. He added that the prices of classic cars have also risen dramatically, because there is a new breed of buyers in the market who have real money to spend. These buyers can purchase very expensive cars without financing.

As demand continues to rise, there may not be enough perfect exotic cars to sate the appetites of collectors. Collins said that there are more billionaires than Ferrari 250 GTOs in the world today, and people who own highly valued classic cars do not want to part with them. The last time a Ferrari GTO 250 was offered at an auction was in 2010, and it fetched $19.4 million, which was a lot higher than its original price of $18,000 in 1963.

According to Collins, Ferraris from the 1960s and Bugattis from the 1930s will always fetch higher prices than newer cars, because of their rarity. These cars were mostly produced in hundreds, whereas modern cars, including most supercars, are produced in thousands.

Leave a Reply


required


required (will not be published)

Categories
Archives