Classic Car Boom continues to gain momentum

Classic Car Boom continues to gain momentum

We are now living in an era without equal, as certain events come together to create an ideal buying and resale oppurtunity. This fact has never been higlighted more clearly than by the way in which the Classic Car Boom has hit mainstram news channels, firstly in the United States, and now in the United Kingdom.

There was a story run on BBC News on December the 24th of last year which highlighted the fact that a lot of "New money" is being placed into Classic Cars, and this was followed up just last week with another article on Breakfast News commenting that "Classic Cars are better than gold".

There are several reasons for the current boom in prices, as well as a couple of reasons why Australia has come right onto the radar of the more sophisticated investors. Here's why :

1) World Interest Rates are at an all time historic low, and so financial planners and investors have to look for an asset class with a more solid upside with reduced risk. Because Classic Cars have offered up to 49% growth over the last 10 years, they fit right into an investment manager's brief.

2) Baby Boomers now have the money and desire to purchase the cars that they grew up having on their bedroom walls. They want cars like Porsche 930 Turbo's, Ferrari 308's, Aston Martin DB7's etc that they dreamed about years ago.

3) Scarcity mentality. These cars are no longer available, and so when they are all sold to new owners who will not part with them, then that is it. No more.

4) Changing economic balance around the world. We used to import endless Ferrari 360's, Lamborghini Gallardo's, as well as other Ferrari models into Australia over the past 5 years. That was when Australia had the Mining Boom based on digging up Iron Ore that was worth $140 per tonne. It was also the time when the United Kingdom and the U.S.A were doing it really tough, and so all luxury cars were at all time low prices, coupled with low currency values in both of those Nations. Now Iron Ore has halved to be worth just $70 per tonne, the Mining Boom is over in Australia, and everyone is wondering what to export or sell next, which has helped cause the Australian Dollar to drop to close to a 6 year low. This makes Ferrari's, Porsche 930 Turbo's and all other European Classic Cars very attractive to those purchasing using GBP or USD.

5) All the rust free cars used to come from the U.S.A. That was the upside, because the Classic Cars there were in great condition. The downside was that they were Left Hand Drive, and so had to be converted if the purchaser wanted to be able to get in and out of gated car parks and drive in food or drink vendors easily. Australian cars were always Right Hand Drive from new.

As a result, there has never ever been a better time to get into Classic Cars, and our shipping and logistics systems make it SO easy !!.