Classic cars are experiencing a boom, offering not only a unique driving experience but also serving as a valuable investment. Prices have been rising since the 2008 financial crisis, and the latest figures are turning heads.
There are over 790,000 registered classic cars in Germany, and in Switzerland, the number has climbed to over 180,000 in recent years, with an upward trend.
Old love doesn’t rust, as the saying goes. A BMW or Mercedes that's over 30 years old can still provide driving pleasure, even without power steering or heated seats. For a growing number of enthusiasts, the love for vintage cars goes even further—they're using them as an investment. This phenomenon is sometimes referred to as «garage gold». Jens Berner, a classic car expert in asset management at Südwestbank, says, «Many clients are looking for alternative yet stable investment opportunities, including classic cars.»
Highest Level in Eight Years
The Stuttgart-based financial institution publishes the Oldtimer Index (OTX) annually, offering investors an overview of the value trends of selected classic car models. In 2023, the index saw an 11 percent increase, the highest rise in eight years.
Classic Cars Are Extremely Stable in Value
A long-term comparison with other asset classes reveals that classic cars are a very stable investment option: Since 2005, the DAX has grown by 227 percent, and the Euro Stoxx 50 Performance Index has risen by 113 percent. In comparison, the OTX has surged by 481 percent.
«Classic cars can be a valuable addition to the asset allocation of very wealthy clients as part of a diversified portfolio. However, in terms of risk-reward ratios and appropriate diversification, classic cars are only suitable for clients with liquid assets exceeding one million euros ($1.1 million)», Berner explains.
From a return-on-investment perspective, buying a classic car is only recommended if the purchase price exceeds 100,000 Swiss francs ($115,000). Additional costs, such as insurance and garage fees, can amount to up to 5 percent.
Opel Manta B GT/E Leading the Pack
The frontrunner in value growth among classic cars is the Opel Manta B GT/E, whose price has increased by 31.21 percent in recent years. Other models, such as the Porsche 944 (+19.43 percent), Opel Kadett C GT/E (+13.19 percent), and BMW 2002 (02) (+10.92 percent), have also shown significant value appreciation.
