Handbags, Coins and Cars – The Rise of Alternative Investments

May 19, 2017

If you think there’s no money to be made from buying cars, then think again. While people have invested in coins, designer handbags and wine to make money as alternatives to stocks and shares, the total growth in classic car values has trumped them all.

 

Total growth over the past decade was 457 per cent. Not even property’s 20 per cent rise across Europe in the last decade can compete. And it’s not just super-cars commanding a hefty price tag. Among the list of top investor car makes, Ford offers among the lowest entry costs.

 

In March 2016, a Ford Escort Cosworth with less than 2,500 miles on the clock sold at auction for £90,000 after first going on sale for £22,050 in 1992. The average price of a Cosworth is now more than double that original price and the Fiesta XR2, which went on sale in 1981 for £5,575 has trebled in value since 2014 to an average sale price of £9,170. There are also stories of sporting Ford vehicles exchanging hands in private for higher sums than are made public.

 

Before you jump in to investing though, it pays to think carefully about it according to Andrew Shirley, who compiles the Knight Frank Luxury Investment Index.

 

“Although the indices that track asset classes like classic cars have seen very strong growth over the past 10 years, potential investors need to be cautious. Not every car will have seen its value grow by the same amount. There are also significant costs associated with the ownership of luxury investments, such as storage, maintenance and insurance. My advice is to always buy something that you love and will enjoy owning. Any increase in value should be seen as a bonus.”

 

With the exclusive new Ford GT supercar now gaining rave reviews, it’s virtually guaranteed to be an investors dream as well as a joy to own. But if you can’t quite stretch to one of those, then below are some more accessible – yet still special – Fords that could be very enjoyable investments.

 

MODEL PRICE NEW AVERAGE PRICE NOW
1984 Ford RS200 £49,995 £147,750*
1970 Mk1 Escort Mexico £1,446 £30,573
1987 Sierra Cosworth RS500 £19,950 £29,000
1987 Ford Capri 2.8i £7,995 £9,560
1985 Escort XR3i £6,278 £4,703
1967 Ford Anglia 105E £596 £8,332*

*based on 2016 sales

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Topics: ford
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