These five youngtimers have the potential to become classics

Inflation protection on four wheels

Tangible investments are generally very popular in turbulent economic times such as these. In contrast to cash or stocks, classic cars, fine wine, real estate, art or diamonds have little connection to capital markets. This means that their performance is largely independent of economic downturns, interest rate hikes or enormously high inflation. Some alternative tangible assets are even benefiting from the current crisis, as investors worldwide are fleeing volatile investments in “safe havens.” Because while stock indices such as the Dow Jones or DAX, for example, have lost over ten percent in value since the beginning of 2022 (as of May 18, 2022), the Liv-EX 1000 Fine Wine Index +8.60% in value over the same period. There is still no current data on young and classic cars, but a review of the Pandmie year 2020 shows that many models have two-digit value increases achieved.

The future price development of youngtimers is of course difficult to predict and is sometimes like looking at a crystal ball. However, industry experts point out that there are certainly brands and models that have higher return opportunities than others.

Five youngtimers with potential

Vehicles from the 80s and 90s in particular are currently very popular with enthusiasts and collectors. On the one hand, because today's 40 to 50-year-olds I want to buy back a piece of their youth — and are now also financially able to do so. On the other hand, because unlike extremely expensive classic cars, youngtimers are relatively affordable, easy to maintain and suitable for everyday use. In general, however, the same applies to youngtimers: As a strategic investment, they should be rare, sought after and well preserved.

Automotive enthusiasts should therefore take a closer look at these five models with what it takes to become classics:

1st Porsche 924

The Porsche 924 was produced from 1975 to 1988 and broke with many traditions: It had a front-mounted, water-cooled engine, fold-out headlights, coil springs on the front axle, had a transaxle design and was also visually in contrast to previous Porsche models such as the 911. Since many parts of the 924 came from the Volkswagen Group, the car was often not regarded as a full-fledged Porsche — only since the In the 2010s, he receives more recognition as an old and youngtimer and enjoys a higher demand. The market value of the Porsche 924 rose on average from 13,200 euros (2010) to 17,800 euros (2020).

2ND BMW E30 M3

The first M3 series was presented to the world public at the international motor show in Frankfurt in 1985. In 1986, the BMW E30 M3 came onto the market as a DTM homologation model and was also built as a convertible until 1991. From the outset, demand for the M3 was significantly higher than expected. Today is that E30 top model a sought-after and sometimes very expensive collector's item: A 1988 BMW M3 Sport Evo was recently sold at a Car auction sold for 250,000 dollars. Most M3s of this generation are priced in the range of 50,000 to 70,000 dollars.

3rd BMW Z3 Coupé

At the IAA in 1997, BMW presented the Z3 Coupé, which, as a two-seater with station wagon rear, divided the minds of the design world. Even the 193 hp basic engine, the 2.8 liter six-cylinder and the 3.2 liter M engine did not convince too many BMW fans at the time: In total, only around 18,000 units of the BMW Z3 Coupe were built by 2002. Due to their rarity value, these currently cost between 15,000 and 30,000 euros — depending on equipment and condition. M-Coupés are particularly rare and are often offered in excess of 40,000 euros.

4th Mazda RX-7

The Mazda sports car was built from 1978 to 2002 and has a special feature: the Wankel engine. A rotary piston engine that was named after its inventor Felix Wankel and converts combustion energy directly into a rotary movement without the detour of a lifting movement.

The 1.3-liter Mazda RX-7 twin-turbocharged engine produces up to 280 hp. The model for European markets has 239 hp and takes a sporty 5.3 seconds to 100 km/h.

Critical voices said that the design of the Mazda RX-7 was based on the Porsche 924, which may be right for the design of the front end with the foldable headlights. However, the Japanese met the taste of customers all over the world and had even sold almost half a million copies by 1985. This makes the Mazda RX-7 the most-produced automobile with a rotary piston engine to date.

5. VW Golf IV R32

There are many VW Golfs. But only a few have the potential to make a career as youngtimers. With only 12,000 vehicles built, the VW Golf IV R32 is the exception here. Shortly before the Golf 5 came onto the market, VW crowned the fourth generation of the bestseller with the Golf R32 — an athlete suitable for everyday use whose speedometer went up to 300 km/h. The Golf R32 had 241 hp and sprints to 100 km/h in 6.6 seconds.

Back then, the family car, which could keep up with a Porsche Boxter in terms of performance, cost around 30,000 euros. This is roughly equivalent to the price that enthusiasts still have to calculate today for well-preserved, rare used vehicles.

What investors should consider

However, if you have a taste for yourself and are toying with a Youngtimer investment, you should consider a few important special features. On the one hand, the necessary expertise is required to be able to objectively assess the condition of a youngtimer. On the other hand, young classics are only suitable as investments if the hoped-for return perspective actually materializes — which is of course not foreseeable at the time of purchase. However, with a longer-term investment horizon, the right car selection, maintenance and care, classic cars can be high-yield investments whose demand is increasing from year to year.

Digitalization enables this illiquid asset class to be broadly opened up to private investors through new technologies. Thanks to the tokenization of tangible assets, today you can also Retail investors benefit from the increase in the value of classic cars. Digital shares in classic cars can be purchased via special investment platforms starting at just 500 euros and can also be traded peer-to-peer via a secondary market.