With the second-hand car market growing exponentially and a sub-culture where rare and collectable cars are highly sought after, these selected BMW cars make great investments. Picture: Supplied
When it comes to smart money, there are a lot of experts out there who claim they can give you "consistent returns" with their guaranteed recipe for money, either made up of domestic and international stocks mixed together with some technology and property portfolios.
This is what most people think of when you say the word ‘investment’, bankers, contracts, and large buildings in the central business district.
But as technology developed and social media was introduced to the world, the investment market grew wider than stocks and bonds.
Cultures sprung up, forming little pockets of investments, each with their own quirks about what makes something special and therefore expensive.
One such investment pocket is found in the car culture, particularly involving older model BMW M cars and some domestic models that were only ever made for South African roads.
As owners and content creators put more information into cyberspace about these vehicles, hyping up their worth, so too has their value been hyped up.
Creative Rides CEO Kevin Derrick said certain models made in the 1980s, 1990s, and 2000s have a specific "X Factor about them".
This includes the BMW E46 M3 CSL, BMW 325iS, the Z3 M Coupe E36/8 AC Schnitzer, E46 M3 and the E39 M5.
"With most new vehicles depreciating the moment they’re driven off the lot, investment buyers are understandably concerned about risk exposure when it comes to modern cars.
"BMWs, in particular, offer strong growth potential based on buyer demographics trending younger. Put simply, more BMW enthusiasts are entering the market than leaving it.
"A Hagerty report in April noted that millennials (born 1981–1996) now comprise the largest market segment for high-value modern classic BMWs, with Gen Z buyers (born after 1997) racing to catch up. In the past four years, the youngest global street legal generation’s investment in the classic BMW market has risen from just 3.1% to 11.3%," Derrick said.
The 2023 Knight Frank Luxury Investments Index showed that the value of BMWs across the board rose 9% in the first six months of 2023.
The value of a BMW rose higher than that of a Mercedes-Benz, Porsche, or Ferrari, according to the Knight Frank Wealth Report.
"Most of us will never be able to park a $142 million investment in a 1950s Mercedes-Benz 300 SLR Uhlenhaut Coupe in the garage, but modern classics offer an accessible alternative wealth-creation gateway that delivers returns.
"Building value in your car collection is also hands-down the most fun you’ll ever have with investments.
"Do your homework, research the market, and ask professionals for advice on which modern classics are on the rise. German cars, BMWs in particular, are as close to bulletproof as one can get right now," Derrick said.
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