Are classic cars a good investment? What the market data shows

The question "is a classic car a good investment?" usually assumes that collector cars behave like shares or gold. The data shows something different: a market of many small, loosely connected segments, in which the average car barely holds its value, while individual models can rise or fall by double digits over the same period. This article is about the market and value. I cover running costs and ownership risks separately in What owning a classic really costs.

Are classic cars a good investment?

If "investment" means a predictable return after costs, then for the average classic the answer is no. Hagerty, the world's largest classic car insurer, has run the Hagerty Hundred index since 2015 — the average value of the hundred most commonly insured collector cars. In a 2015 analysis Hagerty stated plainly that the index had not even kept up with inflation, and that money in classics was made mainly in more expensive, rare models.

The years since have confirmed it. According to Hagerty, the Hagerty Hundred rose 38% in just over a year in 2021, during the pandemic auction boom, and then fell 15% when the market cooled. Anyone who bought at the peak had little to celebrate in the following years.

It looks different if you treat the car as a pleasure that, bought sensibly, does not have to consume much capital. A well-bought, well-kept classic can often be sold a few years later for similar money. That is not a profit, though — it is the absence of a loss on the car itself, before ownership costs.

What do classic car indexes show for 2025–2026?

The indexes show a flat market with a few clear exceptions. The two most quoted sources are the Hagerty indexes and the Knight Frank Luxury Investment Index.

Hagerty indexes

Since 2009 Hagerty has published eleven segment indexes. Each is an average of Hagerty Price Guide values for cars in #2 ("excellent") condition, updated quarterly. The key readings:

Hagerty's commentary matters more than the numbers. Several of the Q2 2026 gains came from big moves in single cars — the Ferrari index rose 9% mainly because one model, the 250 LM, was revalued 29% higher after a private sale. In the index of 1950s–70s German cars, the analysts write that older models are slowly cooling while newer ones rise. The RADindex of 1980s and 1990s cars, meanwhile, keeps setting records.

The Blue Chip index of the 25 most sought-after post-war classics moved only 3% in total over the four years to April 2025. Stability at the very top of the market does not mean growth.

Knight Frank index

The Knight Frank Luxury Investment Index tracks prices across several luxury categories, including art, watches, wine, diamonds and collector cars. According to its April 2026 report the whole index closed 2025 down 0.4%, and Knight Frank described 2025 as a "subdued year" for classic cars. The car category fell 3.7% in 2025, as reported by Gulf News citing Knight Frank's Wealth Report 2026. A bright spot was Monterey, where a yellow 1995 Ferrari F50 sold for US$9.2 million. Knight Frank also notes that cars from the late 1980s to the early 2000s are increasingly outperforming traditional classics.

What the indexes do not tell you

The indexes have three limitations worth remembering:

• They mainly describe the US and auction market. The Hagerty Price Guide is American, and prices in Poland and Europe may move at a different pace.
• They measure cars in excellent condition. A car that needs work behaves differently from a #2 example.
• They ignore costs. An index may rise 5%, while the owner paid for storage, insurance and servicing over the same period.

What determines the value of a particular classic?

Condition, originality and documented history set the price of a particular car — the model only sets the range. Two examples of the same version can differ in price several times over. In Hagerty's Porsche 944 buyer's guide from September 2026, an early 944 in #4 condition starts at US$5,000, while a concours car can top US$50,000.

Value also depends on:

• Version and production numbers. The 1988 Porsche 944 Turbo S was built in 1,000 units and, according to Hagerty, is worth US$60,000–80,000 in #2 condition, while a regular 944 2.5 in good condition costs a fraction of that.
• The buyer generation. Hagerty links the RADindex records to the nostalgia of people who grew up in the 1980s and 1990s. The same effect works the other way: 1950s–70s British classics are losing ground because they compete with newer, more usable enthusiast cars.
• Specification and colour. Rare options and factory packages add value. For example, a Porsche 996 with the factory aero kit is, according to Hagerty, generally priced at least US$10,000 above a car without it.

I discuss which models are worth considering in which budget in Which classic car to buy.

How liquid is the classic car market?

A classic is an illiquid asset: there is no quote, and the price is set only by a buyer who happens to be looking for that model. At MB Classics the average time to sell is about 6 weeks (MB data), and rare or overpriced cars wait longer.

Then there are transaction costs. On the Bring a Trailer auction platform, for instance, the buyer pays a 5% fee on the final price (capped at US$7,500, or €7,500 for EU bidders) or 10% capped at US$4,000, and the seller pays US$99 to list. A broker charges a commission, a traditional auction charges fees on both sides. Each of these narrows the gap between buying and selling price.

Which taxes and costs apply in Poland?

When you buy from a private individual in Poland, you pay civil law transactions tax (PCC): 2% of the car's market value, with the PCC-3 return filed and the tax paid within 14 days of the contract. No tax is due if the value does not exceed PLN 1,000.

When you sell, the holding period matters. According to the Polish tax portal podatki.gov.pl, a private individual who sells a car after six months, counted from the end of the month in which they became its owner, pays no personal income tax and does not report the sale. A sale before that date must be declared on PIT-36, even at a loss. These rules apply to private assets — a car held by a business is taxed differently.

The biggest costs, however, are not taxes but upkeep: storage, insurance, servicing and repairs. I cover them in detail in a separate article on the costs and risks of owning a classic.

How should you buy a classic if holding value matters to you?

The key rule follows from everything above: buy the best example you can afford, not the cheapest example of the model. A car that needs restoration almost always costs more than the difference in purchase price. In practice:

1. Check the history and paperwork — invoices, mileage, numbers matching the documents.
2. Get an independent inspection before you pay, ideally from a specialist in the make.
3. Budget for the total cost — price, tax, first repairs and annual upkeep.
4. Choose a model you want to drive. The classic market shifts with each buyer generation and nobody knows which segments will be in fashion in ten years.

I describe the whole buying process step by step in How to buy a classic car. If you want to know what a car you already own is worth, you can request a valuation on the Sell your classic page. More articles on the market are in the Market and prices category, and cars sold by MB Classics are in the archive, including the 1969 Jaguar E-Type, the 1978 Ferrari 308 GTS and the 1987 Porsche 911 Targa.