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Classics are Euro investments says Glass's Guide
publication date: Mar 20, 2010
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author/source: Robin Roberts
 | | The depressed value of sterling has provided a
windfall profit opportunity for those classic car owners who have been
prepared to sell their cars to overseas buyers, according to Glass’s
Guide.
Sellers of good-condition left-hand-drive cars have
found that the European market, which has long paid higher prices for
such vehicles, offered a great return on investments made prior to 2008, when the value of the euro was just under €1.50 to the pound. |
Now close to parity with sterling, the euro is so strong
as to offer Europeans a great chance to make a killing on a classic,
and it could equally benefit Britons looking to sell their cars.
John Glynn, Older Car Editor at Glass’s, explains, “A car purchased in
Europe three years ago for €22,000 [£14,800], and sold today at the same price it was bought for, would bring in £20,000 - a tidy profit for
the vendor of £5,200 after three years. Cars that might benefit from
such a scenario could include anything from a 1980 Ferrari 308 GTB to an early ‘90s BMW M3 Cabriolet [E30 model].
“With many classic car values having risen by around six per cent
year-on-year since 2007, profits might be even higher. The same €22,000 car could now be worth about €26,000 or £23,800, which would equate to a
£9,000 return on investment.”
Richard Jackson, who three years ago collected his 1982 Porsche 911 Turbo (above) from Switzerland, has just sold his classic to a European buyer.
The increase across the two transactions equated to almost 11,000 euros, with the weakened pound pocketing Mr. Jackson a profit of just over £10,000.
It’s not just private owners who are reaping the rewards of high demand from the euro-zone. Dealers too are reporting strong sales of most left-hand-drive cars. Many deals are done before cars have even entered showrooms, and some long-standing stock is catching the eyes of buyers in Europe and the USA. | | | | |
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