A classic Car is a wonderful Investment 

The gross returns from vintage cars have been estimated to be around 5.6 per cent per annum from 1998 to 2015, with 3.4 per cent inflation as per the Netherlands-based economists Luc Renneboog and Dries Laurs(Tilburg University).  

The Knight Frank Luxury index states classic cars earned 258 per cent in the decade ending December 2018. 

The trend of luxury car investment started with the Ferrari boom, where the old ones did not drive well and did not have air conditioning. 

The versions available in the original require huge expenses on storage, transportation, transaction, maintenance, insurance, and restoration, creating a need to sell the car for a higher profit rate to avoid a loss. 

Most car auctioneers claim they may not sell below 20%, while some young investors seek retro models with modern engines and AC. Most young buyers want old looks and new engines.

Credit Suisse estimates 61,000 South Africans are a member of the top 1 per cent of the global wealth and luxury car market. They target the Porsche-dominated category, with over 105 sales in April. 

Other popular ones include the Maserati, which sold 7; the Bentley and Scuderia, which sold 6; and the Lamborghini, which sold 3. 

Millennials Buying Japanese Wagons. 

There has been a growing demand for antiques and supercars. The professionals want to buy new varieties like the Toyota Supra, which is the current trend but was long predicted by some collectors. 

There has been a growth in categorizing the vintages. RM Sotheby's vintage luxury car category has grown stronger over the same quarter of the previous year as some are investing over a million into the modern collector's supercars, creating a rage in the 1980s or 90s.  

Restomods and some Japanese cars with limited Editions are growing strong. Lower-end market prices are mounting, and young buyers are investing in Supra and the other early Japanese models.

Family Wagon back in trend

The '90s era's eight-passenger wooden-sided General Motor station wagon, launched in 1991 to 1996, is coming back as the angular estate car of the late 1970s, where the '90s era was equipped with sunroofs, climate control, and other attractive aspects. 

This was, basically, a family car. A report by a Michigan-based insurance company found a 50 per cent surge in the number of insurance quotes for such homely wagons in 2017-2018. 

The buyers are attracted to unusual looks, availability of replacement parts, old / reliability, simplicity in design, and thin steering wheel and stitched seats. The world record in public sale was created by the 1996 Buick Roadmaster Estate, which was sold for $19,800.

The experts know how to fix old models and can advise on the features one should check to avoid getting a bad deal. 

Buyers searching for a reliable deal can attend the auctions to check the vehicle personally or get a ride. 

Only a few buyers know the aspects of top-selling luxury cars, and most buy such items for fun.