By Steve Martin. Republished with permission from the Summer 2016 issue of Fourteener Motoring Magazine.

Are air-cooled Porsche prices coming down? Yes. No. Maybe. Does it matter?

According to the Historic Automobile Group International (HAGI), which tracks collectable automobile prices, the market for collector cars grew by over 200% in the past seven years. Collectable Automobiles have indeed become an alternative asset class for many investors. Based on the 2016 Knight Frank Wealth Report, classic cars regularly outperform other luxury assets, such as art, coins, stamps, and wine in recent years. In fact, they have appreciated almost twice as fast as the closest other collectables.

Among the different types of collectable cars, the German makes regularly appreciate at a much faster rate than other cars. According to a recent study, the return from owning cars in the Hagerty Collector Indices category called German Collectables, from 2007 through 2016, were 285%. This appreciation was very high compared to other classes like British cars, which only appreciated 58% during the same period.

Certainly, much of the appreciation in the German car class comes from the 911s. We are all familiar with the skyrocketing prices of early 911s. But, where does the 914 fit in? Hagerty lists the Porsche 914 in the category of Affordable Classics. This group includes cars like the 1963 MG MGM Mk I, 1967 Volkswagen Beetle, 1967 Karmann Ghia, and 1972 Triumph TR6, among others. The Affordable Classics group appreciated 33% from 2007 until 2016, which is a healthy rise in prices compared to groups such as the 1950s American cars and muscle cars, which appreciated at a rate of only 12% each during the same period.

By all accounts, German cars, including the 914, are appreciating quickly. They are also increasing in price at a rate that is faster than many other classes of cars. The 914 may lag the 911s of the 1970s and other highly popular cars among collectors. They are, however, still outperforming most other vehicles in terms of appreciation.

But, does it even matter how much the 914 is worth? In all likelihood you bought your car, not as a financial investment, but as an investment in your happiness. And in that area, the 914 outperforms almost any car I have driven.

It is nice to know that our hobbies are appreciating in value. And although the market periodically goes up and comes back down, unless you are planning to sell your car, its monetary value is of little importance. Keep calm and enjoy your 914.

Save the 914,

Steve