Roadworthy investment

 

Classic cars do not depreciate like new cars do. In some cases, simply driving a brand new car off the forecourt could immediately devalue the car up to £4000. The average is 20% of the car's value. So, in these times of economic turmoil, a classic car investment can be safer than the bank.

If your classic is in good condition, it stands a great chance of being an appreciating asset. Assuming that you keep it in that condition, the best examples can expect this appreciation to rise year in, year out.

Some classic car owners are afraid to add miles on the clock because they fear the depreciation factor, but depreciation is not just about mileage. Also, they run the risk of not enjoying the car because it's stuck in the garage, possibly even rusting. Cars were meant to be driven and as long as you don't do Land's End to John ‘O Groats every weekend, you'll be fine.

Running a pre-1972 classic car has its advantages in that there is cheaper insurance, no road tax, and simple mechanical components. Not many computers to programme and less electrics to go drastically wrong.

Servicing costs for classics are also less - in fact, not in the same league. Research has shown that some modern car dealerships charge labour from £75.17 per hour up to £198.86 per hour - that's before parts!

The best option is to find a small, independent specialist who appreciates the value of the car and doesn't adopt the production line mentality. And now, as the price of fuel is finally coming down to a reasonable level for all of us, we can finally relax a little, and enjoy driving the cars which we bought to love.

If you'd like more information or advice, call me or one of the team on 01664 840687.