Over the past decade investing in classic cars has financially done better than many other collectibles such as stamps or coins. In this study generate data regarding the facts of investing in classic cars. Potential investors need significant knowledge about classic cars because not all old cars can be considered classics. The car is rare or available everywhere. Classic cars are depreciable assets, so it is very important for investors to know how to maintain the value of classic cars. Investing in classic cars is a little risky because to generate a reasonable return, investors must buy the vehicle and repair or maintain it before reselling it.

This paper examines the risk and returns of classic car price indices over the 1994–2021 period. We calculate the central tendency, dispersion, shape of risk and returns, the unit root tests, and correlations. The results indicate a moderated volatility, a low range of returns, and a weak expectation of financial gain given the ancillary costs related to the auction, transport, insurance, guarding, maintenance, and restoration. There are low correlations among the classic car markets. These results provide a better understanding of the risk and returns of the classic car market for many actors such as individual and professional investors, collectors, and wealth managers. Investing in a classic car is more of a passion and emotional investment than a simple desire for financial gain.

This dissertation investigates the overall feasibility of classic cars as an alternative investment strategy as well as the price determinants of classic car values. It is the first known study from a South African perspective. A sample of 287 classic car auction sales was considered over a 15-year period between January 2005 and January 2020. A hedonic regression was utilised in order to establish the price determinants for classic cars. In addition, traditional asset returns were compared to the classic car returns. Compared to other assets, returns on classic cars remained strong.

The paper develops and tests a set of research hypotheses about the effects of model characteristics on market values in the context of a generalized hedonic price model that also accounts for heterogeneity among classic car brands. It is demonstrated that classic car model values reside at several levels and are determined by observable characteristics pertaining to aesthetics, rarity, engineering and performance. In addition, we show that classic car marques play a critical role in the determination of model values and account for considerable variation in values, even after controlling for observable model attributes