WITH NEW RULES ALLOWING UK CITIZENS OVER THE AGE OF 55 TO WITHDRAW THEIR PENSION ENTIRELY, SOME COLLECTORS ARE OPTING TO CASH IN THEIR SAVINGS AND INVEST IN CLASSIC CARS.
We take a look at some of the reasons why people are using their pension to purchase a British classic car, and discuss what to look for to achieve a return on investment.
CHANGES IN THE BRITISH PENSION
On the 6th of April last year, the UK government introduced new rules allowing citizens over the age of 55 to cash in their pension. These new rules provide greater financial freedom, flexibility, and choice. Whether you choose to retire fully at 55, slowly cut back your hours, or continue to work full-time for longer, you can now tailor your retirement to suit your needs and choose to withdraw some or all of your pension in one lump sum. For classic car lovers, these rules, coupled with the recent increase in the number of classic car private equity funds, means that some people are jumping at the chance to use their savings and invest in classic cars.
AN IMPRESSIVE RETURN ON INVESTMENT
Recent figures show that classic cars are becoming more and more valuable. So valuable, in fact, that in many cases classic cars are showing a higher return on investment than gold, shares, and property. For example, there has been a 487% rise in classic car returns over the past decade, while the FTSE All Share has returned only 21%. Cars from the 1950s and 1960s seem to be leading the market, with Ferrari, Porsche, Mercedes-Benz, and Jaguar the most in demand. And if the delight in owning a piece of British history is not enough to tempt you into cashing in your UK pension, a £9.45 million price tag certainly will! Classic cars are fetching incredible prices at auction and generating far more profit that what you could ever make on interest at the bank.
THE BEST CLASSIC CARS TO BUY
While most British classic cars are worth more money today than they were 10 years ago, you’ll want to do some research before you go out and spend your pension on the first car you find. For example, cars that had a limited production run are worth more than any old car from your average manufacturer. Just take this 1957 Ferrari 250 GT 14-Louver Berlinetta for example, it’s one of just eight cars left on the road and it was sold for more than £5.6 million in 2013. Cars that have been owned by someone famous, have been the star of a movie, or have been driven in well-known motorsport events are also worth considerably more.
With favourable exchange rates between Australia and the UK right now, transporting your car with Willship International has never been easier. Our qualified team are experts at moving British classic cars overseas and have contracts in place with various shipping lines to make the process as stress-free as possible. Australia is a great place to look for classic cars and in some cases, it’s even cheaper and more financially viable to buy your British classic car from here.
Are you interested in shipping a British classic car between Australia and the UK? Call us on (61) 7 3267 3694, or send us an online enquiry today!