The appeal never gets old
Few assets spark the same emotion as a classic car. For some, it’s the growl of a V12; for others, it’s the nostalgia of a Sunday drive with the roof down. But beyond the romance, classic cars are increasingly being discussed as serious investments – part collectible, part alternative asset class.
With demand for rare models and limited supply, the numbers have been impressive. According to Classic Car Clubs UK’s Q1 2025 Market Report, blue-chip classics like the Jaguar E-Type and Porsche 911 Turbo continue to hold value even in volatile markets. Yet, as advisers and paraplanners know, emotional assets can be tricky to quantify – and even trickier to justify in a diversified portfolio.
So, are collectible cars a legitimate long-term play, or just a beautifully polished gamble?
Understanding what drives the market
The Wealthspireanalysis ¹ breaks the investment case into three forces: scarcity, sentiment, and stewardship.
- Scarcity– production numbers are finite, and many vehicles are already lost to time.
- Sentiment– cultural cachet drives demand (think Bond-era Aston Martins or 80s Ferraris).
- Stewardship– the condition and provenance of the car determine its resale trajectory.
That last point is critical: these assets need constant care. A car that isn’t driven or maintained can depreciate faster than a bear-market portfolio.
The risk under the bonnet
The Credence Research ² and Goodsong Gallery ³ pieces agree; while headline returns can hit double digits, costs and liquidity risks are substantial.
- Maintenance & storage: Insurance, servicing, and climate-controlled storage can exceed 2–3% of value per year.
- Liquidity: Cars aren’t traded on an exchange – selling takes time, connections, and sometimes luck.
- Valuation volatility: Prices are often driven by auction trends, not fundamentals.
- Regulatory risk: Environmental legislation may tighten restrictions on older vehicles, impacting use and resale.
In other words, classic cars behave more like art than equities.
Portfolio fit: diversification or distraction?
According to Sierks Investors Magazine ⁴, the global collectible-car market is maturing. Institutions are beginning to index data on vintage-car performance, making it easier to model correlations with traditional assets. Early findings suggest low correlation with equities and bonds, which could make a small allocation (typically < 5%) a genuine diversifier – for the right client.
However, it’s not suitable for everyone. Advisers need to consider:
- Client objectives– is this wealth preservation, legacy planning, or lifestyle investing?
- Liquidity needs– will the client need to access capital quickly?
- Knowledge and engagement– does the client understand the market, or are they relying on third-party dealers?
As Luhhu Finance⁵ notes, successful collectors often treat their garages like businesses: meticulous records, regular valuations, and a clear sell strategy.
The UK scene in 2025
Market data from ClassicCarClubs.uk’s Q1 2025 analysis shows UK transactions slightly down in volume but up in average value – suggesting consolidation among serious collectors. Electric-vehicle policies have also boosted interest in “final-generation” petrol icons like the BMW M3 E92 and Audi R8 V10, listed by Auto Express ⁷ as among the “future classics”expected to appreciate over the next decade.
For high-net-worth clients, this isn’t just nostalgia – it’s a potential hedge against monetary inflation and currency fluctuation, albeit one best viewed through a long-term, discretionary-portfolio lens.
Practical takeaways for advisers
If a client raises classic cars in an investment meeting, consider framing the discussion around:
- Purpose before product– clarify whether this is an emotional purchase or a portfolio allocation.
- Full-cost view– include storage, insurance, and restoration in any ROI discussion.
- Exit planning– how and when will value be realised, and through which channels?
- Due diligence– verify provenance and authenticity; partner only with reputable auction houses or dealer networks.
- Tax and reporting– remember that cars may not qualify for capital-gains exemptions and can complicate estate planning.
The bottom line
Classic cars can bring joy, status, and – in the right hands – returns. But they’re illiquid, maintenance-heavy, and sentiment-driven. As advisers, our role is to help clients balance passion with prudence, ensuring the thrill of ownership doesn’t override the discipline of investment.
If this resonates with what you’re seeing among your clients, we’d love to hear your perspective. Have you encountered more “alternative asset” conversations recently?
¹ Wealthspire: Investing in Collectible Cars (2025)
² Credence Research: Classic Cars as Investments (2024)
³ Goodsong Gallery: Are Classic Cars Still a Good Investment?
⁴ Sierks Magazine: Classic Cars as an Investment – Guide for Investors (2025)
⁵ Luhhu Blog: Why Investing in Vintage Cars Makes Financial Sense
⁷ Auto Express: Best Future Classics 2025
