Classic Cars —For Love or Money?
Classic cars are one niche area where people have seen they can make money. Of course, they have their enthusiasts, like us, but some people are seeing them as more of an investment rather than a hobby.
Rare classic cars will maintain their value, but taste in classic cars is changing and, likewise, their value. Except for the convertibles, the value of classic 1920s and 1930s sedans is falling. The people who are old enough to remember driving around in them are passing away, and the nostalgia for these models is dying with them.
One brand that is particularly in demand — and maybe always will be — is Ferrari. In New England, a 1965 Ferrari 275 GTB was sold for $1.25 million at a Bonhams auction this year. The sale set a record for being the most ever paid for a single car in an auction there.
Sale price aside, owning a classic car is a costly affair.Restoration doesn’t come cheap. When it comes to taking out car insurance, though, it’s possible to insure your vehicle for the amount you feel that it’s worth. If you buy a classic car for $400,000, then spend $300,000 on restoring it, for instance,there are reasonable grounds to insure it for $700,000.
Then there’s the taxation. Unfortunately for you, if you own a classic car here, you’ll pay tax on the car as a higher income earner, rather than as owning a piece of art.
So where’s the love?
If you want genuine love of classic cars, the UAE is one place to find it, particularly on the streets of Dubai. Noted for opulence and the number of Porsches, Lamborghinis and Jaguars on its roads, the Emirates are becoming increasingly fond of classic cars too. They even have their popular Emirates Classic Car Festival.
Fortunately for classic car lovers in the UAE, the Automobile Touring Club UAE, with the approval of the Roads and Transport Authority, set new standards for classic car use in Dubai this year. These standards allow owners to register theirclassic cars as such if they’re over 30 years old and pass certain road worthiness tests.
What kinds of classic cars can you see out there?
In the UAE, you’ll see classics that bring a smile to every enthusiast’s face, such as the Volkswagen Beetle, and iconic classics such as the 1959 Cadillac Sedan de Ville.
Then there’s our beloved Chevrolet Corvette — where would the classic car world be without this speedy little number? Relax. Classic car lovers in the UAE are keeping the faith, so you’ll see some of these on the roads, plus a few Chevrolet Corvairs while you’re behind the wheel.
One other classic you’ll see on Dubai’s roads is the Land Rover Series 1. For all of the UAE’s dunes and marvelous off-road areas, however, the roads are the only place you’ll be seeing them.
So if ever you meet a classic car owner at a car show, they could be there out of genuine love for the vehicles, or to see where their next big investment lies. Bump into a classic car owner in the UAE and, even though the Emirates are famous for the desire there to look good, the chances are you can feel a genuine love for the vehicle. Where cars are concerned, sometimes there’s more to keeping up appearances than you think.