Ford vs Ferrari: how Fords are making more money


The classic Ferrari market is renowned for being one of the most lucrative and headline grabbing in the world. But for those alienated by the high entry price of the Ferrari brand, is there an easier way to enter and make money on the classic car market?

We’ve found that in terms of growth, there are in fact more profitable brands than Ferrari, starting at far lower prices.

Tracking and comparing the price difference of 1970’s cars in both the 1990’s and the 2010’s shows us what an owner could have expected to gain in value, over the 20 years.

Quite surprising, then, to see that the ‘king of the auction room’ can be beaten by humble Ford. How does this stack up against other cars from the 1970’s for different marques? The results might surprise you…

ford-vs-ferrari-auction-prices

 

Trading places with Ferrari

Between 2014 – 2016 1970’s Fords are trading for 3.4 times what they were between 1996 – 1999 whereas 1970’s Ferraris are trading at 3.2 times the value they were. So if in the 90’s you were in the market for a 70’s car then a Ford would have offered you a higher rate of return than a Ferrari of the same period.

What we can see from the data, is that since the early 90’s the brands that have increased in value the most are Aston Martin and BMW, which are now trading for 4.4 and 5.6 times their 1990’s price respectively. If you adjust for inflation and increase in Retail Price Index, then the results for the top three earners become even more interesting.

retail-price-index-ferrari-ford-aston-martin

Using a 5 point moving average to easily view trends we can see that Aston Martin and BMW have enjoyed a steep rise and subsequent stabilisation of values over the past ten years. So if you, or your Parents, put money into a 70’s classic back in 1990 then an Aston, BMW or Ford would have made you the most return on your investment. Prices of 70’s Ferraris at UK auctions, however, are rising more steadily but look as if they could overtake BMW and Aston in terms of price increase.

After analysing what made a good classic buy in the 90’s, which 90’s car do you think will make the best future classic 20 years from now? Will it be a BMW, a Ferrari or maybe another brand that will have the highest increase in sales price.

 

Keep up with all the current auction data at classiccarauctionresults.co.uk for honest UK car data direct from the auction house.

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