High Street Auction Company drives up the investment value of classic cars
“The collectible car market has been booming across the world for the past 10 years with a massive resurgence over the past six years. What we will bring to the 22 October High Street auction is collectible cars that will increase in value and can be enjoyed and driven with friends and family at the same time,” says Antony Ashley, head of collectible car sales dealership Moto Village in Cape Town.
Once the ambit of a small niche of classic car collectors and so-called “petrol heads” and the stuff of television reality shows, the collectible car market is now transitioning into an important area for investors wishing to steer their portfolios away from more conventional investment avenues and into less risky safe havens.
“Ongoing tariff-related trade turbulence is driving high net worth individuals into areas that are less susceptible to US’s latest announcements. The obvious first choice has been gold which is now rocketing to levels where investors may not recover their money once the market settles. Collectible cars hold their value and are not driven by the politics and economics of the day,” High Street Auction Company director Lance Chalwin-Milton observes.
Four key investment drivers
Ashley admits that one of the main reasons for investing in a classic or collectible vehicle is the pure joy of owning it.
“Buying classic cars purely for investment purposes, with no emotional attachment, is one way of doing it. In fact, there are countless blue chip portfolio collections around the world built entirely on capital appreciation. However, there is a great deal of owner satisfaction in that one can drive and enjoy these items more than any other in your portfolio. You can’t drink the wine you’ve bought as an investment and whiskey devalues if you open the bottle.” Ashley adds.
Think the iconic 1969 Ford Mustang Mach 1, the 1967 Pontiac GTO with its striking red paintwork and classic American muscle lineage or even the sophisticated and high sought after 1971 W111 Mercedes-Benz 280SE 3.5 that will be coming under the High Street Auction hammer.
“Only 5000 units were produced for the 280SE 3.5. These don’t pop up on the market very often and the auction presents a great opportunity for collectors,” he explains.
The second reason investors have bought classic cars is their rarity.
Here, authenticity is key and limited production numbers, matching engine and chassis numbers and components are important.
Ashley explains that this hinges on the basic economics of supply and demand: “The fewer units, the higher the value. We also look at the condition of a vehicle. The closer a car is to the state it left the factory, the higher the value. Cars with complete service records, invoices for work carried out as well as ownership documentation that may include a heritage certificate confirming exact model specs are first prize.”
An example from the upcoming auction is the 1935 Rolls Royce Phantom 2 Drophead Coupe. The last time it was on the open market was in the 1980’s. Approximately 1681 units were produced with the Drophead Coupe body style being among the rarest of the Phantom 2’s.
Then there’s the 958 Bentley MK VI Drophead Coupe. Last seen on the open market 25 years ago, fewer than 200 examples were produced.
Those in the market for a bit more muscle can consider the 1988 Chevrolet Corvette 35th Anniversary model. 1 of only 2050 units produced”. This is number 1713. “The 35th Anniversary cars were all finished in white over a white interior, with white wheels to finish it off, making it recognisable as the special edition. This is also considered one of the rarer Corvette C4’s produced,” says Ashley.
Cars with unique histories or owned by celebrities also tend to carry value. Most the investment cars traded around the world today have stories. For example, a 1965 Shelby 427 Cobra sold for US$5.94 million on auction in January 2021 was Carroll Shelby’s personal Cobra that he owned until his death in 2012.
The 1965 Ford Mustang Notchback that will be sold on October 2022 is one of the cars that marked the introduction of the Mustang to the world.
Brands, too, are key with 59% of the classic cars sold at auctions for more than US$5 million being Ferraris. Jaguar, Mercedes, Porsche or Lamborghini also raise auction paddles.
“These vehicles represent pieces of automotive art and history that grow in value each year. Because certain models fall into and out of fashion, it is crucial to chat with market specialists such as Ashley. The smartest investors find the most desirable cars just before there is great demand for that particular model,” advises Chalwin-Milton.
Getting down to numbers
Ashley notes that many rare cars have proved to be excellent long-term investments with some models outperforming hedge funds and even real estate. Investment value is also not confined to resale value.
“The reason for that is that these assets are movable between cities where you live and countries where you can potentially unlock the highest value of that movable asset. In South Africa, there’s no capital gains tax on vehicles used in your private capacity. This is another reason why the collectible car market has been exploding in South Africa in recent years, with many collectors now obtaining rare and desirable vehicles that carry provenance,” Ashley explains.
For more information, visit https://www.luxury.highstreetauctions.com/auction/22-october-2025-luxury-live-and-online-auction/