Classic cars are loved by enthusiasts. They bring joy and smiles to their faces. But what if we told you classic cars for sale can actually make you quite a lot of money? It’s quite an adventure but it’s always worth a try. Let’s see if investing in collectible cars is a good idea.
Cars – a money pit or an investment
Driving a car can be expensive. Whether it’s maintenance, insurance, or even just regular vehicle upkeep, having a car means taking responsibility for a range of different costs. When you look at modern cars as depreciating assets instead of growing investments, it’s easier to start making cost-cutting decisions.
Well, what if we told you that collectibles could be an investment? People are used to investing in cryptocurrency or stock, bonds, or real estate. The truth is you can buy Bitcoin with debit card or a classic vehicle and still make a good amount of money.
Classic cars – an investment worth noting
For the automotive fan who doesn’t have time for a hobby, investing in classic cars may be a great option. Unlike most collectibles, a classic car’s value often continues to increase over time, as opposed to decreasing in value after being driven off of the lot — not only because you’re making an investment in that car specifically but also because you’re having fun collecting and driving it. But the market is rapidly growing, so it’s worth considering the option.
Are they hotter than standard investments?
With the increased wealth in China and Asia, there is increasing global interest in vintage cars. Depreciating stock markets, uncertainty about the physical safety of holding rare metals, and even a lack of confidence in paper money have led to the growth of the classic car market.
You are not in the business of investing. Rather, you’re building a portfolio; when you buy collectibles, you do so with flexibility — and that’s precisely what makes them such an attractive long term financial strategy. Over time, the value of your collection will fluctuate and appreciate at different rates based on how each car is perceived historically and by collectors today. It sounds crazy, but it’s true — owning a number of cars actually becomes less risky with time as prices appreciate rather than depreciate! They’ve even ranked in Boomer Magazine.
Risks to consider
Nothing is 100% secure. You need to ensure you will not commit to a car that is not going to last long enough to get you the profit. Let’s see some concerns you might have.
1. Natural disasters
When major natural disasters strike, car investors are often at risk of losing everything they’ve worked so hard to build (but they don’t have to). This can be especially frustrating when you consider that these kinds of disasters actually cause more vehicle damage than any other factor. Cars can sustain major damage in the aftermath of a hurricane or flood, and even if repairs are made quickly, your peace of mind goes out the window.
2. Too much pleasure
One of the most important factors to consider when picking a car for investment purposes is mileage. While driving a classic Mercedes seems like a great idea at first, low mileage is what makes classic cars valuable — and there aren’t many Mercs that can claim to have low mileage.
3. Costly maintenance
Understanding the costs of classic auto ownership before you buy is indispensable. Maintenance and servicing can be incredibly expensive, especially if your car is custom or a rare model. However, with the right tools and an ability to learn how to DIY with cheap alternatives like YouTube tutorials, you’ll save yourself a lot of money over the long run.
Having a collectible car is a funny endeavor that can make you money. Even Millennials fall for it. Of course, that doesn’t make it less risky, but people are still on it for a good reason. After all, investments don’t have to be boring, and classic vehicles are just a way of living your dreams.