A private bank study has revealed that, despite record auction prices, the value of classic cars has decreased. Value has plummeted in the last couple of years and yet they still remain at the top of the list of the most valuable collectable items for wealthy individuals looking to invest their cash.
Coutts bank released their annual 'Objects of Desire' index, which revealed the top valuable 'passion assets' worldwide. In the 'collectables' section, classic cars gradually climbed each year between 2005 and 2015 – particularly booming between 2013 and 2014.
However, in the last couple of years, the overall value of classic cars fell with a 10.4% decrease in 2016. In the long term, this still looks like a minor blip with vintage cars showing healthy returns on investment of 331.9% since 2005.
The classic car still remains the most valuable precious commodity by far in the Objects of Desire index, even though other treasures are closing the gap (like rare musical instruments, which grew by 16.4% in 2016). Despite the decrease in automobile value, classic cars still remain popular with investors in the collectable assets market.