Investing in cars
Many people over the years who’ve got a passion for cars have chosen to invest and build collections of rare beautiful vehicles. Cars aren’t subject to any capital gains taxation and therefore have become a great investment with values increasing nearly 500% in the last 10 years*.
European car brands have seen the biggest hike with Ferrari and Porsche leading the way. In 2013 a 1973 Porsche Carrera RS 2.7 Touring sold for £200,000 – by 2015 this had increased to just under £1,000,000. That’s a big increase.
The late 1980s and early 1990s high-quality original Ford Escorts and Fiestas are also on the up. In the 1990s you couldn’t turn a corner without seeing a Ford Escort, but with dwindling numbers left on our roads, the values have rocketed. This particular model (1988 Escort RS Turbo) has been recently advertised for £19,995, and it’s hardly a low mileage museum piece, with over 80,000 miles on the clock.
With manufacturers now battling for the economy, automation and moving away from the conventional petrol engines, experts believe this will continue to drive the classic car market.
When it comes to insuring such vehicles, it’s really important to have an exceptional cover that keeps you in the driving seat. That’s exactly what our Aviva Private Clients proposition can offer. We understand your vehicle is an important part of your lifestyle – whatever model and make. For certain vehicles, we’ll liaise with your clients and you to agree on the worth of the vehicle to you, not just its market value. We can work with trusted suppliers to help you get an accurate valuation for your vehicle. This means for cars that have seen a massive increase in value over the last few years, they’ll be adequately protected.
*Knight Frank Wealth Report 2016 http://www.knightfrank.com/wealthreport/2016/luxury-investment/auctions
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