NADAguides.com: Collector Cars Surge in Value

March 26, 2008

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COSTA MESA, Calif. — Compared to other market indices, the average value increases for collector cars have been on the upswing in recent years, a recent study indicated.

In other words, collector cars have consistently appreciated at a relatively high rate, making them a fairly strong investment.

According to a report from NADAguides.com, the average increase of collector car values from February 2004 to February 2008 was 36 percent, compared with 16 percent, respectively, for both the S&P 500 Index and the Dow Jones Industrial Average increases.

NADAguides.com's report accounted for 27,000 variations of makes, models, years and segments of collector cars, officials indicated.

Breaking appreciation values down by price, collector cars worth more than $100,000 showed the greatest median jump in value at 47 percent.

Meanwhile, those valued between $75,000 and $100,000 climbed an average of 45 percent.

One note of caution the officials noted, however, was that most recently, the average appreciation rates of all vehicles on the NADAguides.com list were lower from 2007 to 2008, compared to those same vehicles' appreciation rates from 2006 to 2007.

NADAguides.com released its top 25 list of the collector cars, which showed the highest appreciation percentage increases from 2004 to 2008.

Sixteen of the 25 were valued under $10,000, editors noted.

Among these 16 affordable cars, the average appreciation rate was 370 percent, officials indicated.

"We found that, during this time frame, collector-car investors didn't need to spend a lot of money to get a great return on their investments," explained Steve Ferguson, classic car editor for NADAguides.com.

"Of the nearly 27,000 vehicles we evaluated, close to 75 percent were priced at $25,000 or less, with those vehicles garnering an average appreciation rate of almost 35 percent," Ferguson added.

Editors also noted that many of the vehicles that displayed value increases of more than 100 percent were low-volume, obscure brands, such as Citroen, Willys, Rover, Hillman, Metropolitan, Amphicar, Messersschmitt and Afla-Romeo.

Additionally, early 1970s American muscle cars also surged in value, with six, in particular, which ranked among the largest appreciations in the study.

"The growing popularity of '60s American muscle cars has caused their values to escalate significantly in recent years," Ferguson explained. "As a result, collector-car buyers are increasingly turning to '70s muscle cars as a more affordable yet comparable alternative."

The following are some of the '70s muscle cars that showed significant gains:

1972 Chevrolet Nova 2-Dr Sedan

—2004 Average Retail Price: $2,500

—2008 Average Retail Price: $11,100

—Increase: 335 percent

1970 Dodge Challenger R/T Hemi 426 2-Dr Hardtop

—2004 Average Retail Price: $44,200

—2008 Average Retail Price: $177,700

—Increase: 302 percent

1974 Plymouth Cuda 2-Dr Hardtop

—2004 Average Retail Price: $7,400

—2008 Average Retail Price: $28,900

—Increase: 291 percent

1970 Ford Mustang Boss 429 2-Dr Fastback

—2004 Average Retail Price: $55,000

—2008 Average Retail Price: $165,600

—Increase: 201 percent

"When it comes to investing, there are always risks, and the collector car market is no exception," commented Ferguson. "Knowing how and when to invest in collector cars takes an intrinsic understanding of the marketplace."

"While the findings of our report are extremely interesting, we suggest consulting the advice of a certified financial expert before making any investment decisions," he concluded.

Used Car Manager