Investment Cars - Why you should own one

Investment Cars - Why you should own one

Harry Edworthy

 

In a lot of our content, we delve into investment car case studies. Showcasing the historical performance of investment cars highlights that they can be held in an investment portfolio just like any other investable asset class, such as equities or property. But other than historical performance, why should you have exposure to investment cars in your investment portfolio? 

Why you should have exposure to cars in your portfolio 

Investment attributes of cars 

1. Scarcity 

Investment cars are scarce. They are often limited editions or models that were only produced for a short period. This makes them highly sought after by collectors and enthusiasts, which can drive up the value of the investment. 

2. Diversification 

Investment cars offer significant diversification benefits against global equity and bond markets. By investing in cars, you are diversifying your portfolio across asset classes, which can help mitigate risk. 

3. Liquidity 

Investment cars offer high liquidity. Whereas some investments, such as property, can take months or even years to sell, collectable cars can be sold relatively quickly. If you need to liquidate your investment quickly, you can typically sell your car within seven days. 

4. Preservation 

As new cars become more and more expensive, inflationary pressures have a natural drag on the valuation of cars in the used market, as these cars are now offered at more attractive valuations. In addition, many collectors and enthusiasts value cars for their unique features, design, and craftsmanship that do not feature on newer models, which further adds to their desirability and potential for appreciation. 

5. Enjoyment 

Investing in investment cars offers the pride and pleasure of owning a piece of automotive history. Investment cars often have a rich and fascinating history and can be enjoyed as works of art, as well as functional vehicles. This can provide a sense of pride and pleasure that other types of investment cannot offer. In addition, owning an investment car can be a great way to connect with other enthusiasts and build a community around a shared passion.

Interested to find out more about investment cars and Autofolio?

Investment Cars 2025 click here 

2025 Appreciating Automobiles report (Free) click here

Buy an Investment Car click here

Sell Your Investment Car click here 

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