As markets across the country crash and struggle amid a nationwide economic crisis, collecting classic cars proves to be a fruitful and satisfying endeavor for many Australians.
While real estate prices, stocks, and cryptocurrencies have fallen, the value of classic cars has continued to rise and only increased during Covid-19.
A good example is the 1999 Nissan Skyline GT-R R34, worth $68,000 a few years ago.
But by 2021, that 23-year-old used car was valued at $240,000 before rising another $155,000 this year alone.
A 1990 Mazda RX7 also went from $46,000 a few years ago to $99,000 last year before being valued at $250,000 in 2022.
Camera IconThe value of classic cars has only increased during Covid-19. Melanie Whiting Credit: News Regional Media
Supercar Secrets director Mark Haybittle has identified more than 80 other specific car models that will experience similar increases, claiming “growth is simply excellent”.
“It’s just phenomenal; the value of these things keeps getting higher and higher,” he told NCA NewsWire.
“Unlike stocks, property, bitcoin, or anything else that crashes and fills up, the value of these cars goes up and never goes down.
“During Covid, when it could have turned sour and moved south, the acceleration in the value of these cars was even greater.”
Haybittle attributed this rapid growth to Australians who invested their wealth in things they knew and trusted when the pandemic hit.
He said that “trusted fallback assets” such as cars, gold, art, and jewelry are the safest investments because they are real.
“When you invest in Bitcoin, you are investing in something that doesn’t technically exist, other than a few servers in a country or domain that you probably don’t have a connection to,” he said.
Camera IconManaging director of Supercar Secrets Mark Haybittle said Australians value investing in something real. NCA NewsWire/Jeremy Piper Credit: News Corp Australia
“The difference with cars is that they are real. You can sit in them, touch them, drive them, keep them in a nice place in the house, look at them and talk about them over a beer. You can do all those things.”
But as prices continue to rise, the industry explodes, and it is fueled at its core by a genuine love of cars.
Unlike other countries where car collecting has become fully commercialized, the demand for national icons such as Holden Commodores and Ford Falcons has kept the industry true to its roots.
“The entire collectible car industry has started and is supported by people who love cars; that’s where it starts,” said Mr. Haybittle.
“Here in Australia, we are lucky as the whole industry is still in its infancy; it is still supported by people who love cars.
“You have people who love the Holdens and Fords, and that’s accelerated by the fact that they don’t make them here anymore.”
Camera IconHolden Commodores and Ford Falcons are popular among Australian collectors. David Caird Credit: News Corp Australia
He also said that while other markets are volatile, the value of classic cars will continue to rise.
Mr. Haybittle cited his success as proof of having just one car when he started the company in 2014 and now had nearly 420 vehicles worth more than $30 million.
“The only way we’ve done that is through the acceleration values of the cars. They’ve always gone up – except for one we got wrong, which is still worth the same as what we paid for it,” he said.
“If you invest in the right cars, they will only go up.”
