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Many classic car enthusiasts hope to make money from their hobby, but sadly not all of them are so lucky.

So, what is it about a classic car that makes it appreciate in value? What factors should you consider when choosing a car as an investment? And how should you care for your car in a way that will boost its value over the years to come?

Read on for our quick guide, covering everything from a careful maintenance routine to choosing the right classic car insurance.

 

Time

First, what transforms an ordinary car into a classic – and therefore potentially adds a zero or two onto the price tag?

The most obvious factor is time. For certain tax purposes, any car more than 15 years old with a market value higher than its original list price is considered a classic. Sometimes, the definition includes any car over 20 years old. If you’re going by tax exemption, that’s any car that’s over 40 years old.

However, for motoring enthusiasts, the term is harder to define. Many older cars are destined for the scrapheap rather than the show circuit!

And some newer cars might just squeeze into the definition, if they meet certain other criteria. MGTFs, for example, might qualify for classic car insurance if they’re used as occasional vehicles with a low annual mileage.

So what other qualities give a mature motor a new lease of life – and drive it to the top of car collectors’ wish lists?

Marque and specs

Just as with new cars, some of the chief factors that determine your car’s price are its marque and specs. Certain marques are more sought-after by collectors than others, so if you’re buying a car as an investment, do your research carefully and choose wisely.

In part, this is down to each brand’s reputation for durability and reliability. Cars that are known to last well without succumbing to rust or corrosion are likely to do well in the classic car market.

Or perhaps the marque no longer exists, but has acquired cult status. Simca was a French marque popular in Europe in the 1960s, but then sold to Chrysler. In the UK, Austin and Hillman were highly regarded back in their day, but both badges have been discontinued for a few decades now.

Classic car experts, however, aren’t sold solely on marque – they know the exact model and specs that they’re after. They’re likely to be particularly interested in models that were considered gamechangers, or have some quirk or unusual feature that sets them apart.

Peugeot, for example, are often considered to be slightly dull cars – but the Peugeot 205 GTi is another matter entirely. If you’ve had one of these since its launch in the 1980s, you’ll have seen it appreciate considerably. Make sure it’s covered with classic car insurance that reflects its true market value.

 

Condition

The very best classic cars are said to be in ‘concours condition’, meaning they are ready to be exhibited at the most exclusive shows.

What does concours condition look like? Perfection! Every component – right down to the nuts and bolts – must be perfectly aligned. The bodywork should be gleaming, the dashboard polished, and the upholstery as good as new.

However, even if your own classic car is not quite up to that standard, it might still appreciate in value.

What’s important is that it’s been well restored and maintained. You should be carrying out regular oil and filter changes, tyres checks and so on to keep everything ticking over beautifully. The engine needs to purr!

It helps if you have the documentation to prove that any major repairs have been carried out by recognised experts for that model.

If your car runs well and you can prove you gave it plenty of TLC, it will fetch a far higher price than an old banger rusting away on your drive.

So, if you’re restoring an old motor and hoping it will appreciate in value, it pays to do it properly. When choosing classic car insurance, look for laid-up cover – it’s available at a bargain price for motors that are not yet being driven on the road, protecting them against fire and theft while you restore them to their former glory.

 

Authenticity

To achieve that sought-after ‘concours condition’ status, you need to ensure your classic car is as authentic as possible.

Of course, the older your car, the more likely it is that you’ll have had to replace bits and pieces. If you do have to replace major parts, try to match them as closely to the original as possible.

If you choose to update your car – perhaps to improve safety measures so they meet modern standards – you risk depreciating its value, though you might make it more usable as a family car.

Remember: classic car insurance is often lower cost than regular policies, in recognition of the fact that owners generally maintain their cars beautifully and drive them carefully.

 

Provenance and history

Classic cars are all about history. Not just motoring history, though that’s a fascinating topic. They also tell us about society and culture through the decades.

So, when you’re selling your vintage vehicle, what makes it attractive to prospective buyers?

First, they want to know more about the marque and model. Where was it made, and what was the history surrounding its development? Which designers gave it this distinctive look? Why was this engine installed?

Then they want to know any stories about this particular specimen. Who were its previous owners – anybody noteworthy among them? Where has it travelled during its lifetime? If this car could talk, what adventures could it tell?

They’ll want to know about its life as a classic car. How have you restored it? Has it ever entered or won any car shows?

The more receipts, documents, journals, and photos you have to demonstrate your car’s history, the better. All these stories add up to make a classic car more than just a fine piece of mechanical engineering. They make it a character that brings history to life for you.

Your beloved motor really is irreplaceable, so make sure it is protected with classic car insurance.

Rarity

One of the key qualities that collectors look for in a car is its rarity. There’s a real cachet to an unusual – or even unique – motor.

Rare cars are likely to be especially old, when cars were not produced in the same volume as they are today and fewer models survive. They could even include antique vehicles from the pre-WWI era; or vintage vehicles from WWI to 1930, when motoring became far more common. If you’ve got one of these in good condition in your garage, chances are it’s worth a huge amount.

More recent cars might also be rare: many sports or supercars, for example, were only ever manufactured in very small numbers. Only 36 Ferrari 500 Superfasts were made, and nowadays one of these 1960s supercars could fetch over a million pounds.

Even models produced for the mass market have a certain rarity value, as most were simply scrapped long before achieving cult status. More than four million Ford Cortinas were produced in Britain between 1962 and 1982, but there are only a few thousand remaining. Snap one up, and you could have a valuable classic on your hands.

And cars that were misunderstood or unloved back in their day might now have acquired rarity value and therefore appreciated in price. Three-wheeled Robin Reliants have been the butt of many jokes over the years – but it’s the owners who are laughing now, thanks to the somewhat increased market value.

 

Culture

Certain models of car have their place not just in motoring history, but in our cultural life, too.

Take the 1961 Austin Mk 1 Mini Cooper S. It’s not a rare car: several million were produced, right up to the year 2002. But it has a place in our hearts due to its appearance in several great films, most notably The Italian Job.

A 1963 Aston Martin DB5, meanwhile, is likely to fetch half-a-million or more today. Yes, it’s a fantastic piece of engineering, but that price tag is at least partly down to the car’s starring role in James Bond films.

If such dream vehicles are beyond your price range, or you have altogether more down-to-earth motoring tastes, how about the characterful and charming Citroën 2CVs? Cheap and cheerful back in their day, they have appreciated in value thanks to the images they conjure up of carefree European holidays.

Such cars have become iconic, and collectors love them. Make sure yours is covered with great classic car insurance – after all, it’s not just a vehicle you’re insuring, it’s part of our culture and history.

 

Nostalgia

While rare, sports cars and supercars are the ones that will fetch eye-watering prices, but that’s not to say that you can’t make a nice little profit on a more everyday model.

Never underestimate the value of nostalgia! There is a healthy market for vehicles that remind people of the family cars of their childhoods, or even the first model they bought themselves after passing their driving tests.

So, while your teenage self might never have imagined that your 1980s Ford Escort would ever be considered a classic, nowadays there’s a ready market of middle-aged buyers looking to relive their youth in just such a car.

Or perhaps you always hankered after a Ford Corsair Crayford Convertible as a youngster, but your budget only stretched to a Cortina? Nowadays, with a proper salary rather than just pocket money, you might be able to fulfil that youthful dream!

So, cars from the 1960s, 1970s and 1980s are likely to attract a good deal of interest. Market prices won’t be sky-high as there is still plenty of supply to meet that demand, but if you invest a bit of TLC into your model, you could still turn a tidy profit.

Many of these models, such as VW Golfs and Mazda MX5s, have matured very nicely indeed and are now considered classics. Hopefully, your driving style has also matured from your teenage days, but even so, classic car insurance is still a must.

 

Which modern classics are appreciating now?

So, bearing all this in mind, what cars could you invest in now that will make you a mint in the near future?

It’s hard to predict, though some models are already being tipped for future greatness. The BMW 1M Coupé cost £40,000 when it launched in 2011, and second-hand models were already selling for £55,000 in 2019. That’s a fantastic profit – particularly if you’ve also got some usage out of it as a regular vehicle in the meantime.

Classic car enthusiasts are particularly keen on anything that represents a pivotal moment in motoring history, so the first electric models are also likely to become collectors’ items. The Tesla Model S was the game-changer in this area, so it’s likely that we’ll see early models swapping hands for high prices in years to come.

But it could be that the humble supermini or family estate sitting on your driveway will become a classic that will net you thousands! Some experts are naming the Ford Focus as a future star, and why not? After all, who would ever have predicted back in the 1970s that the Ford Cortina would one day be considered a classic?

 

Get a quote from Lancaster today

At Lancaster, we recognise that your classic car is not only your hobby, but also your investment.

We’re specialists in arranging classic car insurance for all types of older vehicles. Through our extensive networks, we can arrange an agreed valuation for your model, making sure that you are insuring it for what it’s worth to the market.

If you’re embarking on a restoration project, we can arrange laid-up cover while your vehicle is off the road. And if it’s damaged in an accident, your policy can cover a choice of repairer, so you can make sure your vehicle is repaired up to the very highest standards, keeping its market value.

Contact Lancaster today for a quote for your classic car.

Policy benefits, features and discounts offered may very between insurance schemes or cover selected and are subject to underwriting criteria. Information contained within this article is accurate at the time of publishing but may be subject to change.