The best classic cars for investment and driving fun

The classic car market is booming. Whether it’s restomods, continuation models, modern classics or electric conversions, a desirable car appears to be a passport to riches.

Of course, that’s not strictly true and, as 2020 demonstrated, anything can happen.

However, you can lessen the risk by seeking the advice of the experts, which is where the Hagerty Bull Market comes in.

According to the valuation team, these are 10 modern classics that should go up in value in 2021. Originally launched in the US, this is the first UK-focused Bull Market list.

Aston Martin DB7

To compile the report, Hagerty analysed its market valuation data and insurance quotes and policies, looking for indicators that a car is rising in value. Although the average Hagerty Price Guide ‘excellent’ value across the DB7 has dropped from £37,680 in 2019 to £31,580 today, the experts predict the Aston Martin will bounce back. The V12 Vantage is the most valuable, but the 3.2-litre supercharged DB7 is a more affordable modern classic.

Hagerty’s verdict: “It may seem odd to start with a car that has lost value in the last 12 months. But it’s an Aston Martin, and as we know, the fortunes of that company rise and fall like waves on a particularly choppy sea. Surely Aston Martin will bounce back and – as has happened so many times in the past – a certain secret agent may help. As the cars’ age and miles creep up, well-preserved examples should become more sought after. Before this year, values were relatively stable at around the £37,000 mark; now may well be the time to buy while prices are low.

Ferrari 328 GTS

The 328 was the entry-point to Ferrari’s mid-1980s range, sharing showroom space with the Mondial, Testarossa, 412 and F40. The GTS – that’s Gran Turismo Spider – sold in big numbers, with 6,068 leaving Maranello. That’s significantly more than the hard-top GTB (1,344 sold). Hagerty says prices are likely to rise in 2021.

Hagerty’s verdict: “Ferrari 328 values shot up in the first half of the 2010s: our top value for the car was around £30,000 in 2012, but by 2016, our ‘excellent’ condition value peaked at just over £100,000. Since then, it has dropped annually as the feeding frenzy for more modern classic Ferraris has subsided. So why buy now? Well, from 2016 to 2019, values fell at roughly 11 percent per annum, but last year, this reduced to just two percent. It has all the markers of a successful classic: a legendary manufacturer, rarity and that 1980s look that is so attractive to Generation X buyers.”

Ford Focus Mk1

The great thing about the Hagerty Bull Market is the eclectic mix of cars on the list. Next to a Ferrari that screams the 1980s as much as a Sony Walkman and leg warmers, we find one of the most important family hatchbacks of the 1990s. From its ‘New Edge’ styling to the way it drove, the original Focus was the complete package. The contemporary Volkswagen Golf felt stodgy and unresponsive, while the Focus felt lithe and agile. A genuine game-changer.

Hagerty’s verdict: “Hagerty has long championed the unsung heavy lifters of the automotive world, the unexceptional saloons, estates and hatchbacks that take us to our offices, drop our kids at school and transport us on holiday. Values for the Focus are low: even an ‘excellent’ example can be purchased for around the £1,400 mark, fair ones for much less. We believe that this is a very small outlay for a piece of automotive history, and one that could even qualify you for entry to the 2021 Hagerty Festival of the Unexceptional Concours De l’Ordinaire.”

Jaguar Mark II

The Jaguar Mark II is one of the most beloved and iconic sports cars of the 1960s. From family men to racing car drivers, and cops to robbers, the sporting saloon was a familiar sight on the roads and tracks of Britain. Cars with the 3.8-litre engine are the most coveted, but the 2.4-litre and 3.4-litre versions offer the styling and handling for a more modest price.

Hagerty’s verdict: “Like the Mini, the Jaguar Mark II is an iconic classic: it has been collected and cherished since the day it was first sold. In recent years, values have been relatively steady and have not fluctuated as wildly as its prettier sibling, the E-Type. However, values have already risen by nearly a third this year, yet we feel that the Mark II still has potential for growth. With the E-Type’s 60th birthday in 2021 that will attract attention to the marque. If you want a good Mark II, now may be the time to buy.”

Land Rover Discovery

Land Rover unveiled the Discovery at the 1989 Frankfurt Motor Show. Budget constraints meant it shared many features with the contemporary Range Rover, including a V8 petrol engine, enlarged to 3.9-litres for use in the Disco. A four-cylinder diesel was also offered, but the five-door version didn’t arrive until a year later. A facelifted version followed in 1994, complete with revised taillights and headlights.

Hagerty’s verdict: “Values of classic Range Rovers in both two- and four-door configurations have rocketed over the past five years, and we believe it’s about time the Series I Land Rover Discovery followed suit. Until recently, even the best could be bought for a few thousand, but in recent months, exceptional examples have achieved much more: in June, CCA sold one for £12,320. Our ‘excellent’ guide price stands at £9,800 but is likely to be revised upwards soon.”

Mercedes-Benz SLS AMG

The Mercedes-Benz SLS AMG sources its power from a 6.2-litre V8. In most other supercars, this would be the major talking point, but the SLS AMG had a couple of other party tricks up its sleeve, namely a pair of gullwing doors. They were inspired by the Mercedes-Benz 300SL of the 1950s and helped to create a retro-modern icon. A Roadster version arrived in 2011, with an electric roof replacing the gullwing doors.

Hagerty’s verdict: “The spiritual successor to the 300SL. As with most modern performance cars, values tend to dip at first and until very recently, according to statistics provided by Auto Trader, advertised prices of both body styles were dropping each month compared with 12 months previously. Then, from September 2020, asking prices rose: the convertible by 2.3 percent and the coupe by 2.5 percent. Values range from around the £100,000 mark to about £600,000 for the rare Black Series. As Mercedes gears up for the era of electrification, the SLS could be a high-tide mark from the petrol era.”

Mini Cooper

The original Mini was ranked second in the Car of the Century awards, sandwiched between the Ford Model T and Citroen DS. The first cars were badged Austin or Morris, before Mini was launched as a standalone marque in 1969. Hagerty points to the Cooper S as the most desirable Mini, but all variants of the Cooper are likely to be in demand in 2021, when the car celebrates its 60th anniversary.

Hagerty’s verdict: “Values of all variants of the Mark I Austin/Morris Mini Cooper have been increasing in value over the past few years, but Hagerty believes they have the potential to rise again in 2021, thanks to the 60th birthday. The first 997cc model now seems somewhat undervalued, given the prices asked for its later, larger-engined brethren. Plus, with just 1,000 examples made, the early Mark I Mini Cooper 997 is a very collectable classic.”

Porsche 944 S2

The 944 was an evolution of the Porsche 924. Production started at the end of 1981, but the 944 came of age in 1985 with the arrival of the 944 Turbo. Hagerty says the 944 S2, introduced in 1990, is the one to watch in 2021. Power is sourced from a 3.0-litre four-cylinder engine, up from the 2.5 and 2.7 litres of before. Not quite as quick as the 944 Turbo, but arguably the choice of the purist.

Hagerty’s verdict: “The 944 is a cracking car, and with examples still available for just a few thousand, they’re the new people’s classic. Our pick of the bunch is the naturally aspirated S2. More drivable than the Turbo but with just 10hp less, the 3.0-litre S2 briefly shot up in value in 2016, and after a quick correction has been gaining steadily in value ever since. Now, we’re seeing the best examples selling for in excess of our top Hagerty Price Guide figure: always a sure sign values are moving. We feel our average value of £17,550 will rise.”

Renault 5 GT Turbo

Our Tim Pitt drove a Renault 5 GT Turbo for Car magazine. His verdict: “The 5 GT Turbo is a stark reminder of how far cars have come in three decades. Build quality is comical, crash-protection is woeful and its performance wouldn’t trouble a school-run Qashqai. Yet it also reminds you what, by and large, we’ve lost: compact dimensions, light weight, unfiltered steering and fun at sensible speeds.”

Hagerty’s verdict: “Hot hatches are the modern classic cars of the moment, combining performance, 1980s style and practicality. Values of popular models – the Volkswagen Golf GTI Mk I, Peugeot 205 GTI and Ford Escort XR3i in particular – have soared, but one is still obtainable, and it’s more powerful than them all: the Renault 5 GT Turbo. With the Renault 5’s looks, flared arches, and 115bhp on tap thanks to the Garrett turbo, its current value of £12,900, although appreciably up from 12 months ago, still looks as if it has significant potential to climb.”

Toyota MR2

Such is the Mazda MX-5’s dominance of the affordable roadster market, little gems like the Toyota MR2 are too often left to prop up ‘best of’ lists. This is unfair, because in its day, the Toyota MR2 was a credible rival to the Lotus Elise and Vauxhall VX220, with greater reliability and even less luggage space. We had a look on Auto Trader, where we found examples available for less than £2,000. Tempted?

Hagerty’s verdict: “How long can a car like the Toyota MR2 Mk III remain a secret? Even a rare unmolested example with Torsen LSD and six-speed gearbox will only set you back a few thousand pounds. Plus, with the exception of a couple of well-known mechanical issues, it has Toyota’s robust mechanicals and leather or Alcantara options make the interior not a bad place too. With our HPG ‘excellent’ value at just £4,100, the roadster from Japan seems undervalued.”