The Fascinating World of Classic Cars
Classic cars have always been an integral part in any car fanatic’s life. Many people love the story that is behind the car while others focus on the engineering aspects of the cars. But, there is a good chunk of people that buy classic cars for investment purposes. Yeah...you heard right...for investment purposes!
The reason behind this is because these classic cars are special. They command ridiculous premiums because they are rare, have unique souls, and are engineering marvels.
Take for example the Jaguar E-Type. This car was built during WWII in England when the engineers faced nightly blackouts due to the German bombings. The war didn’t stop the British and the E-Type was a game changer. It featured a "kick you in the face" six-cylinder engine that made distinct purring whenever it was pushed to its limits. At the time, it was the fastest car on the planet.
People loved the E-Type because it overcame so many great challenges: being developed during WWII and becoming the fastest car of its time. It featured an engine that Jaguar wouldn't make ever again and a design that revolutionized the industry. Of course, this means that buying a E-Type and holding onto it for a long time would yield a serious profit. During a 2013 auction in NYC, an ultra-rare pristine condition Jaguar E-Type was sold for a whopping $467,500! $467,500 is crazy considering that they were priced at 5,000 pounds when they first came out!
But the fun doesn't stop there! Many collectors purchase limited edition Ferraris from the mid-20th century. Back then, Ferrari was making engines that were naturally aspirated and were true prancing horses. Plus, there are only less than 2,500 pristine "true-Ferraris" which makes other passionate collectors feel inclined to do whatever it takes to get their hands one. These cars are almost extinct This feeling of exclusiveness justifies the huge premiums that these Ferraris command.
The most expensive Ferrari ever sold at an auction was a 1962 Ferrari 250 GTO for $34.65 million! Utterly bonkers for a car that is roughly 50 years old. For the future of car investments, I would suggest building up a portfolio of limited edition hyper cars that are game changers. The McLaren P1, McLaren 675LT, Porsche 918, and even the LaFerrari are a few cars that will command high premiums. As the years go by, I guarantee that these cars will skyrocket in value.
Well that's all I have this week. Make sure to like and comment!
