How I beat the stock market investing in cars

Shares or collectible cars? I speak to TheCarCrowd to find out which investment could deliver bigger returns.

When it comes to investing, most of us default to stocks and pensions. But what if the shiny, nostalgic cars in your garage could outperform the markets? I speak to David Spickett, CEO and founder of platform TheCarCrowd, to explore the world of collectible car investment and whether it stacks up against – or even surpasses – traditional stock investments.

Remember, you can buy a brand new or used car right here on Carwow. And you can sell your car, too. We’re here to help you through every step of your car-changing journey.

Fun vs future: the car conundrum

I’ve always loved cars. Buying them for fun has been a passion of mine, but when it comes to retirement funds, my pension has traditionally gone into stocks and shares. Lately, though, I’ve been wondering: have I missed an opportunity by not investing in cars?

The potential is rather compelling. Even modest cars can appreciate rapidly, while high-end classes can deliver serious returns. But how do you invest in cars without taking on the headaches of full ownership?

Investing in cars through syndicates

Spickett introduced me to TheCarCrowd’s model: syndicated ownership. Think of it like a racehorse club: multiple investors pool money to buy collectible cars. Each car typically has 30-40 investors, with minimum entry shares starting around £2,000, scaling up to £100,000 per allocation for high-end cars. These investors gain exposure to appreciation, participate in community events, and enjoy exclusive access – that’s without needing to drive or maintain the cars themselves.

For example:

• Modest car: Bought for £500, offered at £2,000 after 2.5 years = 400% increase (£1,500 profit).
• High-end car: Bought for £90,000, now valued £125,000-130,000 = 25% return (£25,000 profit).

These examples show both the potential and the limitations of car investment. Small cars can spike in percentage terms but yield modest cash, while premium cars grow more steadily but with higher absolute returns.

Nostalgia drives returns

Classic cars tied to childhood memories and culture often see the biggest gains. Cars such as the Peugeot 205 GTI have skyrocketed in value, especially if they are original and well-maintained.

Here are some other examples:

• Low-mileage, original 205 GTIs are valued around £20,000-25,000, with annualised returns of 10-12%.
• A Ford XR2i bought at £12,000 now approaches £25,000, a 100% gain in 2.5 years.
• Rarer models such as the Ford Escort RS Turbo see even stronger demand.

Timing matters more than anything. An Escort Cosworth bought at £60,000 in 2023 now sells for around £70,000. That’s still a gain, but less dramatic than when it was bought before 2023. Scarcity, nostalgia, and condition are things they look out for.

High-value cars and rare manuals

Manual transmission cars, especially rare models such as Ferraris and Audi R8s, have been increasingly sought after. For instance, a right-hand drive manual Ferrari that was valued between £90,000-100,000 five years ago is now valued at around £135,000 today – and TheCarCrowd estimates there’s even a £200,000 potential in the coming years as it’s one of the last manual Ferraris of its kind around. Manual V10 Audi R8s also show upside, driven by rarity and pop culture connections such as Marvel’s Iron Man franchise.

Other high-value opportunities include cars approaching classic status, such as the Porsche 911 GT3 RS or Mercedes SLS, which continue to rise in value due to limited production, nostalgia, and iconic features. I’m incredibly tempted to invest in either of these!

Comparing returns: cars vs stocks

TheCarCrowd reports average annualised returns of 12.7%, compared to the S&P 500 at 14.7% and the FTSE at 11.7%. That’s slightly below the S&P, but what really appeals to me is the tax advantage in the UK, as they’re considered “wasting assets” and are generally exempt from Capital Gains Tax (CGT) upon sale, and the chance to diversify away from traditional markets. Even better, these are assets I can actually enjoy and experience – just being around them makes the investment feel more real.

Risks to consider

Before I dive into car investing, I’ve learned a few key lessons:

• Timing matters. Cars usually depreciate before they rise – buying too early can mean years of waiting. The best opportunities appear once a model hits the bottom and prices start to stabilise.
• Nostalgia and scarcity drive value, and it’s rarely about performance or price. Cars that mark an era or capture a cultural moment tend to appreciate, while fleeting trends fade.
• Maintenance is so important. Regular servicing, proper storage, and a full history protect value – no car is immune to neglect.
• Returns aren’t just for supercars. Modest cars can deliver steady gains, and carefully chosen high-end models can rival or even outperform traditional stocks.

My final thoughts

After talking to TheCarCrowd, I’ve realised that investing in cars isn’t just about speed or looks – it’s about data, strategy, and timing.

Stocks and pensions will always be part of my long-term plans, but investing in collectible cars has shown me a fun and profitable alternative.

So, whether it’s a hot hatch I loved as a kid or a rare manual supercar, I’ve started to see cars as more than a hobby. With the right approach, they can fit alongside my traditional investments in a balanced portfolio.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

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