Will The Classic Porsche Market Crash?

Will the Classic Car Market Crash?

The conventional wisdom is that buying a vintage car, such as a classic Porsche, should never be thought of as an “investment”.

However, if you had been lucky enough to purchase a run of the mill 1969 Porsche 912 (**Cough!**The car I stupidly sold!** Cough!**) in Westchester, NY for $5,000 circa 2006 you would be sitting pretty right now.1

According to Hagerty, a 1969 Porsche 912 has an average value of $30,000 now… 600% increase! That’s an Internet mania style stock market return…

But on something you can actually enjoy.

Will the Classic Porsche Market Crash?

Wow.

So, will the classic Porsche market crash?

It’s just a guess, but my sense is probably NOT… The cars are relatively well-made and the 911/912 series may have the most iconic, recognizable body type of all sports cars.

The beautiful, iconic body type of the 911 is what raised the values of the four cylinder 912. By extension older model Porsches, such as the 924, 944 and 914 are relatively inexpensive for a Porsche.

My old 1969 Porsche 912
My old 1969 Porsche 912 I sold for $5,000

Also, the market for these cars is broad, but the buyers are often mega rich who stockpile the vehicles in an investment diversification strategy akin to esoteric investments like vintage French Bordeaux wines.

Classic car investing may be an oxymoron, but to some it is an uncorrelated asset in an investing landscape where, perhaps with the exception of Bitcoin and cryptocurrencies, investments are increasingly correlated.

Footnotes

  1. And to the gentleman who purchased mine… Well timed, Sir.