It’s almost a no-brainer: holding onto a classic car as an investment is a solid financial decision, provided you bought low and found the nicest, most original example of the breed you could locate. Ask anyone who managed to hold onto a 1971 Plymouth Hemi ‘Cuda convertible beyond the late 1970s how well that few grand managed to grow, or the owner of a Shelby Mustang, or even an IROC-Z Camaro that was locked away in a semi-trailer for years. But you wouldn’t expect a bank to tell you that to your face, would you? You’d expect to hear suggestions about the stock market, or real estate, or any other savings vehicle that is more in-line with traditional means.
German banks, however, are telling customers exactly that, and there is proof to back them up. Sudewestbank, a Southern Germany bank, has had an actual index to measure the value of classic cars with. It’s called the OTX Classic Car Index, and it only focuses on vehicles that are over thirty years old and were built by manufacturers based in southern Germany, like Audi, BMW and Porsche. Since 2005, the OTX’s index quadrupled, more or less doubling the DAX, Germany’s stock market. Notable was older Porsche 911s, which increased in value 683% in the same time period.
Okay, even with my unabashed hatred of “investment vehicles”, even I understand what that means. So, let’s open up the floor for a question: what vehicle that is over thirty years old (1988) would you snatch up and hold on to as an investment that isn’t already worth big bucks? And how do you expect your investment to perform over the next fifteen years?