When the Covid-19 pandemic hit, the world changed. Businesses and families that had taken for granted the benefits that the “new normal” had to offer lost a lot of income and savings. For drivers and owners of Speedway cars, this was certainly a race to the bottom as revenue fell by 43% in just one year. But not all car racing teams were hard hit, and some even saw a bump in value as fans and customers shifted more towards online streaming of events.
The key for racers at this point was to find a way to make their cars more accessible to potential buyers. While the immediate concern was for drivers who had lost their livelihoods, others knew that their investment in racing was now more valuable than ever.
Why Do Race Cars Appreciate In Value?
Simply put, people want to be part of something big. As the world shifted towards online living, the demand for virtual races grew and became a viable alternative to in-person events. This had a domino effect on the value of race cars. The same way that video games and movie theaters declined in value during the pandemic, so too did cars that were typically associated with in-person entertainment, like Ford Mustangs and Chevrolets.
But it wasn’t just about the decline in revenue and value. The stress of running a business in these times also had an effect on the health of drivers and owners. Anecdotally, many have reported that mental health issues, like anxiety and depression, spiked during this time. Some have even remarked that it was worse than during the 2008 financial crisis. This is important because, as a society, we tend to undervalue the importance of mental health and the impact that it has on our daily lives. When you’re at your best, you perform at your best. So it is with mental health – you need to feel at your best to manage your emotions and work through problems, even when everything around you is looking bleak.
How Can You Invest In Race Cars?
If you’re looking to invest in a race car, where should you put your money? This is a question that we get asked all the time, so let’s dive into how each type of racing vehicle is valued and whether or not you should buy one.
F1 Cars
For decades, people have been buying and selling cars with a view towards entering them into races. In fact, in 1950, the Aston Martin DB2S sold for £500 ($690 in today’s money). As with most luxury goods, demand outstripped supply and F1 cars are now considered to be amongst the most valuable cars in existence. The most expensive vehicle on record is the 1961 Ferrari 248 Intercontinental. This iconic sports car sold for $12.9 million in 2015.
The demand for these cars comes from all areas of the world. In the 1940s, people traveled to watch F1 cars race. Since then, a steady stream of wealthy individuals and families have bought into the sport. But perhaps the most valuable group of all are motorsport fans who buy cars with a view to restoring them and using them regularly for road trips.
These cars are built to a fairly high standard and feature some of the best workmanship in the business. And what is business, really, but making profit through providing a good or service that people want or need? With the world shifting towards electronic communication, people are turning to old-fashioned paper maps and globes to explore the far corners of the planet. Seeing as these cars will be driven regularly and often on long journeys, it’s little wonder that they see value in having a fully restored vehicle that will be maintained and enjoyed for many years of occasional use.
Sports Cars
Sports cars are built with less luxury, but more practicality in mind than your average F1 car. These are the cars that you’ll typically see at Formula One tracks around the world. While there is no set specification for a Formula One car, the most popular models will typically include a 4.7-liter V8 engine, producing in excess of 500 horsepower. In order to hit peak speeds of up to 190 mph (306 km/h), these cars must be driven hard and fast. That is, they are designed to be driven fast and how they drive is what gives them their character and makes them different from other models. But while they may not be the most luxurious vehicles, they are a different beast altogether, and see a different set of valuations altogether.
These are the cars that people buy when they want to be able to go fast. As roads became faster and traffic increased, people turned to speedier forms of transport, be it boats or planes. But now that we are in a position where traffic and journeys are at a minimum, people are looking for ways to indulge themselves and experience speed, power and beauty in a way that traveling by boat or plane just cannot match. These cars are a way of doing that. While there are numerous reasons why a boat might be impractical for long journeys, there is only one reason why a plane might not be.
When it comes to valuing sports cars, a number of factors need to be taken into consideration. These include the make and model of the vehicle, its condition, and its history. But perhaps the most important is how fast does it go? For that, you really need to hire a speed expert to give it a go for you. But even without that, the sound that it makes when it speeds past is unforgettable. So at least the mental image of what it would be like to drive one will stay with you for the rest of your life.
Mazda 6
Mazda 6 cars are the big-banger versions of the iconic Mazda 3. Although they sit below the sports car category in terms of price and value, they’re still considered to be amongst the most luxurious vehicles ever made. And it’s not hard to see why. The Mazda 6 features a sleek and modern design that is both practical and luxurious. It also boasts an array of innovative safety features and technology that is second to none. And let’s not forget about the distinctive singing metal buzz that emanates from within each and every model when they’re driven at speed. This is a sound that is both sensual and musical in the truest sense, and it drives home just how much pleasure a sleek, well-designed, high-performance automobile can offer.
The Mazda 3 and 6 models are popular around the world and with good reason. They’re designed to be both practical and luxurious. This is a combination that very few other car manufacturers can match. Even during these uncertain times, people want to be able to enjoy the finer things in life, and cars are a way of doing that. These two models represent the height of luxury and performance in their category and are worth collecting, owning and displaying.
The rise in value that many cars experienced in the wake of the pandemic is definitely unique. The desire to escape the hustle and bustle of daily life and delve into a different world of speed and power is exactly what this type of investment offers. Just as virtual races became a viable alternative to in-person events, allowing hobbyists and serious racers alike to participate, so too could digital asset ownership offer a similar alternative to in-person spending.
The key thing to remember about these two categories is that they are designed for different purposes. While F1 cars are used for competition and display purposes, sports cars are usually driven for enjoyment. So while they are both valued for their performance, keeping that in mind will guide you towards investing in one that you’ll actually use and enjoy.