First of all, it is good to remember what a collector car is. To be considered a collector’s car (or vintage car), the vehicle must generally be more than 30 years old. In addition, it must be generally in its original condition, without significant modification. Repairs and restorations are of course accepted and will not compromise the collector’s status. Finally, the vehicle must correspond to a model whose production has ceased.
Any vehicle corresponding to the three criteria mentioned above is eligible for collector car status. Since 2014, collector’s vehicles have been defined by European law in order to provide better harmonization at EU level.
Why invest in a classic car?
If you are a connoisseur, a DIYer or simply a lover of beautiful curves, it is very tempting to invest in a classic car. It is obvious that if you do not like legendary cars and beautiful mechanics this is not an investment that you should make.
Buying a vintage or collector’s car is above all a passion investment or a pleasure investment . It could be a childhood dream by acquiring a model that rocked your childhood or a need to get your hands dirty by restoring a great old model. The reasons are diverse. One thing is certain: talking and sharing your passion on these beautiful cars enlivens you and makes you happy.
In pleasure investment there is also the word investment. Investing in a classic car also aims to earn money by making a capital gain on your investment.
Since the beginning of the 2010s, speculation on classic cars has increased significantly. Some models have seen increases of 100% (or even more) in just a few months. A model like the Mercedes 300SL has seen its price multiplied by 10 in just over 10 years, for the most beautiful models, going from €150,000 to €1,500,000 euros!
invest old car
Classic car taxation: VERY advantageous
Since the European harmonization of 2014 concerning classic vehicles, taxation has become even more interesting.
If you are importing a classic car from a country outside the EEC, you will only pay a reduced VAT of 5.5% to import it into France (or any other EU country). For comparison, if you imported a standard vehicle, you will pay 30% tax in France (10% customs fees and 20% VAT).
Capital gains tax of 19.5% + social security contributions in the case where you can prove the purchase price and the length of ownership of the car
6.5% flat-rate tax on the resale price (as for works of art)
Which cars are increasing in value?
The collector car market is not a homogeneous market but is broken down into several categories.
At the top, you will find the most prestigious sporting brands like Ferrari, Lamborghini, Maserati or Aston Martin.
A second category where you find the sportiest and rarest models of a given brand. We can cite the Jaguar XKSS, the BMW 507 or the Porsche 911 RS.
In the third category, we can find racing cars that have had success in national or international events. For example Jaguar Type C, Maserati 250 F, Aston Martin DBR, Ferrari 250 TR.
These three categories are part of the “elite” of collector’s vehicles and with prices accordingly (often several million euros).
Much more accessible, we can focus on a copy of the Alfa Romeo Spider from the 1970s which has a timeless style and which can be found for less than €20,000
In a higher budget, up to €50,000 you can find beautiful examples of a Corvette C3 convertible from the late 60s or a Ford Mustang convertible from the 60s as well.
How do you find the collectible car before everyone else and the cars that will increase in value?
It is complicated to anticipate this market 100% because, as in any excessive speculation, there are movements in one direction or the other (upwards or downwards) which are completely unpredictable and rapid.
If you don’t have a few million euros to invest, you can already forget about “classics” like the Ferrari 250 GTO or the Mercedes 300 SL Papillon.
Very old cars (pre-war) are perceived more as cars dedicated to the museum rather than a true collector’s car..
Follow the specialized press, observe the evolution of prices over the last few years and select models that can fit into your budget.
Do not hesitate to go to auctions where you can find models cheaper than at a traditional dealership.
Also take a look at sites like gt-spirit.fr or erclassics.fr which can give you a good overview of the models and dimensions. You should be aware that in the field of collector cars, the condition of the vehicle can cause the price to vary enormously. Between a “competition condition” and a “good condition” the price difference will be very significant, for the same model.
Since last year the market has calmed down a little and it is rarer to see models double or triple in a few months even if it remains difficult to anticipate big movements in speculation.
In all cases, it seems important not to have the objective of reselling the vehicle within the year with a large capital gain in order to avoid any disappointment or miscalculation. View this investment over the medium-long term, always keeping an eye on developments and above all, treat yourself, this is also the goal of this type of purchase.