Oldtimer investments can be worthwhile

green classic mercedes

Investments on the stock market are becoming more and more the standard for investors – in the long term, the returns are above average compared to other forms of investment. In short, equities are indispensable in a broadly diversified portfolio. Investors are increasingly thinking about profitable alternatives that further diversify their portfolios and open up new markets. Under the keyword “Passion Investments“, rare Japanese whiskies or special jewellery, for example, are developed into promising investments. Investors are particularly interested in vintage and youngtimer vehicles.

The purchase and maintenance of vehicles has so far been perceived as a hobby rather than an investment. A look at the DAX30 and the OTX classic car index shows that classic and young-timers have long since ceased to be just a hobby, but a serious form of investment. The continuously increased profit development around investments in vehicles in the past years is a proof for it. While the OTX continues to rise, the DAX30 performs much more volatile over the same period.

A comparison of the two indices clearly shows that the DAX30 rose by a total of 52% between 2000 and 2018. At the same time, the OTX shows growth of 161%.

Alternative investments continue to gain in relevance

The comparison shows Investments in old- and youngtimers wrongly lead a niche existence. If you take your time and observe the market calmly, you can make an important contribution to diversifying your own portfolio. New applications help to keep the effort for portfolio management as low as possible and to keep the increase in value as high as possible through seamlessly verifiable vehicle histories. Before the current economic forecasts lead to investments in the automotive sector becoming interesting for more and more investors, in many places investors can still acquire vehicles in good condition at market prices.

Managing vehicle investments made easy

Certainly: Investments in vehicles are more time-consuming and complex than a simple click in online banking, which allows you to increase or decrease your own stock portfolio at short notice. In the past, investors also had to have a basic level of expertise and invest time and money in managing the vehicle.

However, the more complete the vehicle history could be proven, the more precisely the value and especially the increase in value could be determined. The resulting bureaucracy is now a thing of the past. Today there are technologies and platforms that make investing in the automotive sector much easier. One example is the “Gapless” app launched last year. Financed by Porsche AG, Gapless offers a high-quality app for managing an investment vehicle fleet.

With Gapless you can create a meaningful and complete profile for every vehicle with photos, vehicle details and attached documents. Costs incurred for maintenance, restoration and the like are kept under control by the in-app cost manager. In this way, a “passion investment” becomes a solid yield generator in the portfolio.

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