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Classic Car Market on Bumpy Road
CNBC.com | November 10, 2009 | 04:43 AM EST

Owning a classic car is often a childhood dream and in May this year the highest price ever was reached at an auction for a classic car: 9 million euros ($12.2 million) for a 1957 Ferrari Testa Rossa.

But can classic cars really make you money? Throughout the financial crisis the classic car market has seen some price adjustment, particularly in makes and models that saw big gains in the years just prior to the downturn.

But overall, one index that tracks some very rare models shows an increase of nearly 10 percent in the past year. The HAGI Top Index is an overall measure for exceptional historical automobiles and has risen steadily over 30 years.

Classic cars are a great way to put your money into something safe and collectible, Robert Coucher, editor of Octane Magazine, told CNBC.

"Investing in cars has been very successful," Hardy Singh Sohanpal, co-founder of the Historic Auto Group, said when looking at a chart of the HAGI Top Index versus gold.

"It's quite a small market but nevertheless successful," Sohanpal told CNBC, adding the market has long-term potential but "definitely isn't a market for speculators."

"The issue has been with historic cars that there's always been a lack of transparency on the transaction side and a lack of fundamental data," he said.

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