Bloomberg once pointed out in an article that the value of classic Ferraris has been increasing – and by no small margin. Even something as relatively humble as the Testarossa from the 80s has nearly doubled in value over the past couple of years.
Meanwhile, the value of some models – particularly those built in the 1950s, 60s, and 70s – have skyrocketed nearly seven-fold since 2006. No one can guarantee that a classic Ferrari will outperform their stock. But owning and driving a Ferrari is a much more interesting and fun investment for sure.
Investing in a classic car
Despite the hype surrounding classic cars as an investment vehicle (pun intended), can you actually make decent returns? It can be difficult to do so after factoring in the cost of maintenance. However, some enthusiasts claim that they have made some serious returns on their classic and modern classic Ferraris within just a few years of ownership.
Investing in classic cars can be pretty straightforward. You buy one, maintain it in good condition, and keep it until it hopefully increases in value – either due to increased demand for that make and model or decreased numbers out there.
Unlike buying a piece of art, a classic car can’t be left alone. It will need to be stored and looked after properly in order to maintain its value. Such costs can be expensive and need to be factored into the decision-making process. A number of factors dictate whether a car increases in value:
- desirability, and
- popularity with collectors.
The key to making money with any investment is to be ahead of the pack and that means looking at cars that are unloved or overlooked. All new cars depreciate in value and will eventually reach the bottom of the curve. But if you can spot the gems and be absolutely sure that they will be something that people want and might buy in the future, then you have found your target.
You can start by looking at cars that have been discontinued for a decade or two – pick up an iconic one with low mileage, a good interior, and a full service history.
Which models should you consider?
Top-of-the-market models remain expensive – GTOs, 250 Californias, and Lussos trade at seven and eight figures – and are inaccessible to the average investor. Here are some relatively more affordable V12 Ferraris – with values that are trending in tandem with their multimillion-dollar stablemates.