People will always search for the best products or services that they can invest in to make a profit and improve their lives by covering their needs. Most of them tend to hold savings accounts and some prefer to invest in traditional financial products. The most innovative investors like to search for alternative investments such as classic cars which are going to be the topic of this article.

In general, classic car owners or collectors see their car values rising. Even if it sounds crazy for people who are not car enthusiasts or petrolheads, the classic car market is growing with new investors joining the frenzy, coming from Asia and wanting to enlarge their collections with new rare items.

Cars with historical importance—ones that pioneered new technology or raised the bar for consumer expectations—can become collectible, especially if they are rare and beautiful because beauty is always an advantage. A racing history adds to a car’s allure, as can association with a respected designer, racer or builder such as the likes of Raymond Loewy or Carroll Shelby. Prior celebrity ownership can also help, especially if the individual is associated with cars, such as Steve McQueen, Paul Newman or James Garner. The most expensive collectible cars combine these attributes. The car market mirrors the market for art. It’s an investment you enjoy aesthetically and it can also provide a currency hedge since vehicles can be transported to countries with favourable exchange rates.

Two researchers went through the auction data of 29,000 car sales going back to the late 1990s. Gross returns from classic and vintage cars overall worked out at around 5.6% a year over the period 1998 through 2015, or 3.4% a year after inflation, found economists Luc Renneboog and Dries Laurs at Tilburg University in the Netherlands. The gross returns figures looked better than most stocks and bonds over the same period, the authors note. The return figures for classic cars were also flattered by a mania for Ferraris that peaked several years ago. The classic car market also strengthened because of “Restomods” which are classic or vintage cars that have been retrofitted with modern engines, power steering, and even features like air conditioning. Car market experts suggest that because of the fact that old cars don’t drive well and they don’t have the necessary modern luxury equipment, buyers retrofit vintage cars with modern engines, power steering, and even air conditioning.

The classic car market is full of opportunities for investors who are searching for alternative investing strategies. They are tangible unlike the usual and famous financial products and gain value each day, even if global markets fluctuate. Of course, collecting and investing in classic vintage cars requires a substantial budget, however the profit is going to be also substantial if you decide to sell them. Our suggestion is for you to learn more things about this niche market and make the right moves in the right time.