Classic Supercars Offer Up Incredible Investment Returns
Why settle for dreadful interest rates when you can score triple digit returns on vintage German supercars?
For many of us, the art of making money comes easily. But then comes the point when you realize that you need to do something with that money. Letting your excess cash sit around in some regular savings account (or worse, under the mattress) just isn’t going to result in any sort of reasonable return, either. No, this is the point where most turn to investments, particularly stocks. But according to Bloomberg, there might be another diversified option to add to your portfolio – vintage supercars.
For the most part, automobiles have represented a depreciating asset over the years. And those that got caught up in the muscle car boom a few years back are losing their shirts trying to sell those same gems today. Now, however, even German banks are recommending that their clients invest in old supercars from the homeland. Mostly because they’ve returned some seriously impressive gains in recent years.
“For customers with more than 1 million euros in liquid assets, a classic car can be an attractive addition to their portfolio in terms of yield and value stability,” Jens Berner, vintage car expert at Suedwestbank AG’s asset management unit, told Bloomberg. “After the financial crisis, requests for alternative investments such as art, wine or classic cars had risen sharply.”
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It makes perfect sense, really. The OTX Classic Car Index, which is comprised of 30+ year old southern German supercars, has quadrupled in value over the last three years. Good luck trying to match that performance with any other fund. The biggest gainer of the bunch? The Porsche 911, whose values have skyrocketed 683% in the last 13 years.
Of course, there are some caveats. With values so high today, we might be on the verge of a bubble. Counterfeit models are everywhere. And choosing a less popular model might make it harder to move if you need the cash later on. But if you do it right, investing in supercars might just be a very attractive alternative to dreadful interest rates.
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