TURNING WHEELS IN THE ECONOMY

Written on the 10 August 2012

TURNING WHEELS IN THE ECONOMY

WITH Australia’s equities markets in the financial doldrums and property values in stagnation, it’s becoming increasingly difficult to find investment havens that offer a degree of safety with a reasonable chance of capital gain.

However, one investment sector has received considerable interest over recent months as canny investors enjoying substantial long-term gains.

Classic cars have often been viewed as playthings for their sometimes eccentric enthusiasts. But if some recent sale prices  are an indication, investing in a classic car could be a wise move.

Charles Dickson, a Gold Coast classic car enthusiast, has been amazed at some recent sales, both private and at auction.

“Like all investments, you need to buy wisely,” he says.

“There are many things the first time investor needs to be wary of, but at the moment, even small investors are reaping worthwhile returns.’’

Dickson cites deals involving the original Mini Cooper as an example.

“Just a few years back you could pick up a good one for around $10,000. Today, the same model in pristine condition is fetching $30,000 and more,’’ he says.

Dickson says 1960s ‘bug eye’ Austin Healy Sprites also have shown strong investment gains and have doubled in price over the last 10 years to more than $20,000.

“At the other end of the scale, classic Porches, Ferraris, Maseratis and Aston Martins are achieving stratospheric prices,’’ he says.

In August last year, a rare 1957 Ferrari Testa Rossa was auctioned by Gooding & Co at Pebble Beach in America. The car, one of only 49 manufactured, sold for a staggering US$16.4 million, $4 million more than the previous record for a classic car.

Dickson says just like buying shares or property, picking an investment winner in the car world involves careful research.

“Originality is important as is the cars provenance,’’ he says.

“A car with a well-documented history, or one previously owned by a high profile actor or sporting star could be worth considerably more than one with no available history.

“Picking a particular make of car can also be difficult. Things to look for include availability of spare parts, servicing costs and the brand’s previous track record as an investment.”

Most makes are well supported by local car clubs, like the Gold Coast MG Car Club. The MGB was one of the world’s most successful sports cars, selling more than half a million cars during the 18 years it was manufactured. This year marks the 50th anniversary of the model’s launch.

To celebrate the occasion, the Gold Coast MG Car Club will display around 50 of these popular convertibles and coupes at the Southport Broadwater Car Park on Sunday, July 29.


Latest News

STAFF CHURN BLAMED FOR MCGRATH EARNINGS DOWNGRADE

MCGRATH will fail to meet earnings forecasts after some of its star real estate agents defected to growing Perth firm...

MCBAIN RESIGNS AS BELLAMY'S DIRECTOR WHILE THIRD CLASS ACTION MOVES CLOSER TO SECURING FUNDING

LAURA McBain (pictured) has resigned as a director of Bellamy's Organic (ASX: BAL) today, effective immediatel...

REDBUBBLE TO MISS IPO FORECASTS

REDBUBBLE, the online marketplace for independent artists, will miss a series of forecasts set out in its IPO in its ...

BLUESCOPE CONTINUES STRONG RUN WITH GUIDANCE UPGRADE

BLUESCOPE Steel (ASX: BSL) is trading up 7.51 per cent at $11.16 per share after upgrading its half-year guidance thi...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter