The Best Classic Car Investments You Can Make In 2017

For the most part, classic cars are a terrifying reminder that drum brakes work as well as drums as they do brakes. But their visual pheromones and cultural connotations make them one of the world's most compelling alternative asset classes. More so when you consider that they consistently provide better returns than other traditional asset classes, as well as more unusual investments. According to the Knight Frank Luxury Investment Index, wine, for example, offers investors a three per cent return over 12 months. Watches, four per cent. Coins, ten per cent. Classic cars? 28 per cent.

“Launched in 1996, the original Boxster is now becoming a modern classic in its own right. With that mid-engined layout, it’s a peach to drive and good value, with prices starting at around £5,000. The engines are not without their problems so always get an inspection and go for the later, faster 2.7 or 3.2-litre units. Silver, grey or black paint works best and always go manual not Tiptronic. Don’t expect major appreciation – Porsche made hundreds of thousands – but buy a low mileage, loved car and it certainly won’t lose money. And may even go up.”

"Two years ago, you could have got a slightly tatty Fiat 500 for £5k, now you’re looking at £7k minimum. But that’s still good value – they ooze charm and style, plus with the 60th anniversary this year, 2017 could be a good time to buy. As ever with an old Italian car, rust is the enemy so buy the best car you can possibly afford. Really good 500s are £10,000, exceptional examples are up to £20,000."

£15,000-£20,000 - Alfa Spider

"Like the Fiat 500, values of these have started to accelerate. A couple of years ago, you would have paid £10,000 for a slightly average left-hand drive example, but now the same car's more like £15,000.

If you want to dive in at the lower end of the Spider market, left-hand drive will mean lower pricing – but not by much. Really nice examples are £20,000 and more, so get in quick if you want to re-live all those The Graduate fantasies before prices go any higher.”

£30,000 - £80,000 - BMW E46 M3 CS and CSL

"Special edition E46 BMW M3s are hot property. Take the super-rare CSL, which comes with a carbon-roof and a price tag of £70,000 to £80,000 these days. A couple of years back you would have paid £50,000 so some people have made very good investments. Lower down the price range is the CS, which came with same big brakes, quicker steering rack, revised springs and 19in alloys - not to mention a manual gearbox too, rather than the CSL's SMG 'box. A few years ago these were around £20,000, they're now £30,000+.”

£30,000 - £50,000 - Porsche 993 Carrera 2

"The rise in values of these last-of-the-line air-cooled Porsche 911s has surprised even seasoned trade experts.

In 2015, you would have paid around £45,000 for a really nice low mileage Carrera 2 - that now buys an average car with high miles. Good cars are £55,000 at least with exceptional low mileage Carrera 2s commanding £65,000 and more. And we haven’t even talked about the Turbo or RS versions yet, which have rocketed. It’s not hard to see why – the 993 marks the end of an era. It’s a beautifully-made, brilliant-to drive compact Porsche in the best tradition of the marque.”

£50,000 - £70,000 - Mercedes SL W113 'Pagoda'

"Super-cool and one of the best-looking drop-tops from a time when Mercedes made truly beautiful cars. They've had a strong following for many years now but they're starting to edge out of reach for most and while the entry point to SL W113 lifestyle was probably around £50,000 two years ago for a good running car that might need a little TLC, you’ll now need at least £70,000. The really exceptional restored cars are £110,000 and more, but there’s perennial demand for these cars and I expect that to continue.”

£140,000-£200,000 - Jaguar E-type Series 1 FHC RHD

"Think classic car and most people will picture a Series I E-type. Everyone loves them and they’re even more beautiful today than they were in the Sixtes. Values have shot up. Not so long ago, you could have got away without breaching the £100,000 barrier for a closed headlamp, fixed head coupe, right-hand-drive car but those days are pretty much gone. Now prices for good early cars with low miles are £140,000 with the very best costing £200,000 and beyond. And that goes for Roadsters too.”

£300,000-£400,000 - Aston Martin V8 Vantage

“Iconic cars like the Aston Martin DB4, DB5 and DB6 have seen some big gains in value in recent years but values levelled off last year. Now the spotlight is falling on the younger Astons, and the real movement has been in the V8 Vantages.

Buyers who had these cars on their bedroom walls now might just be able to afford them – I say might because the late Eighties cars are rapidly accelerating out of reach. Highest demand is for the powerful X Pack versions. Prices currently range from £300k to £400k, up around 20 per cent on a year ago and they should have more growth ahead.”

£500,000-£700,000 - Ferrari Daytona

£1m+ - Porsche 993 GT2

“With a fearsome reputation thanks to rear-wheel drive and a turbocharged 430bhp flat six, the Porsche 993 GT2 – or Widowmaker to give it its nickname – has always been revered by hardcore Stuttgart enthusiasts, but an RM Sotheby’s auction last year (pictured) saw them shoot into the mainstream when a bidding war pushed the price of a Riviera Blue example to £1.8m, way above the £750k estimate.

What has that done to 993 GT2 values? Brought them all up. Two years ago, £600,000 would have netted you one of the 57 examples Porsche made, now you’re looking at £1m-£1.2m. And it’s a safe bet too. You’re getting a race-track inspired frighteningly fast and rare Porsche, but one that doesn’t require the enormous running costs of a similar Ferrari.”

Source: The Best Classic Car Investments You Can Make In 2017