If you’re an entrepreneur looking to invest your cash, it’s easy to be swayed by shiny objects, like cutting-edge technologies and the latest startups. But if you’re looking to make a profitable investment, focus on assets that appreciate in value and have timeless appeal. A classic car investment can provide investors with huge returns without all of the work required by more modern vehicles.
But are unique classic cars a good investment, and how to find great classic cars for sale today? These questions are the topic of interest of many, and we will try to provide the answers to old classic car fans.
What is a classic car?
Before you consider investing in classic cars, you should know the specifics of that type of investment. Just like investing in cryptocurrency requires you to get to know the cryptocurrency market, classic cars are an interesting topic that you should be educated about.
A classic car is a vehicle that is at least 15-20 years old and has some unique features that make it appealing to car enthusiasts. Classic cars often have a certain charm and style that sets them apart from more modern vehicles, and they can be fun to collect and drive.
Is it worth it to invest in classic cars?
Classic cars are not for everybody. Unlike modern investment types like cryptocurrencies, where you can invest $100-$150 on Bitcoin (you can learn more about how to open a Bitcoin wallet here) or other blockchain projects, classic cars are not a cheap endeavor. You should have an answer to the following questions:
- Do you have enough money? – car enthusiasts spend many thousands on legacy cars. And while the cheaper ones might cost you $5,000-$10,000, a Mercedes 190 in a mint condition might exceed $100,000 without any problem.
- Do you fancy old cars? – car investments are not all about making a profit out of the situation. You should love old cars and appreciate them. They have a unique “ingredient” that makes them a great choice for many, but you will have to sacrifice the AC, new tech, and a lot of other goodies you’re used to now.
- Can you maintain a classic car? – in some developing countries, there are many technicians that can successfully repair old cars. However, it’s hard to find a US garage that will enjoy working on an old car where new parts are almost impossible to find, and servicing might cost you a fortune.
- Can you afford to lose money? – investing in classic cars is a risky move. While some models might reach their price peaks decades after they are released, other vehicles might skyrocket in price within weeks, create a hype, and then die down. You should be aware that you can lose lots of money.
What makes an old car a classic one?
Cars with historical importance — or those that provoked a change in an industry, culture, or way of life — can become collectible, especially if they are rare and attractive. Usually, it’s a car with groundbreaking technology at its time, a car that also was designed to impress, and most notably — a car that many boys at the time have dreamt of driving!
You guessed it right, the biggest admirers of old cars are mature people who dreamt of owning a car in their teenage years or when they couldn’t afford to buy one at the time.
The classic car is one which formed a cult around it. A typical example of such a car is the Toyota Supra. The Supra was first introduced in 1978 and was immediately popular for its sleek design and powerful engine. Up to this day, every car enthusiast would love to drive this Japanese legend.
Risks associated with classic car investments
Going into the market of classic cars doesn’t go without its risk. While it looks great on paper, there are many situations which you have to avoid, otherwise you can get a money pit. Let’s see some of the risks
As a classic car investor, you should be aware that poorly maintained vehicles can cost you a fortune in future repairs. A well-maintained car, on the other hand, will hold its value for longer and save you money in the long run. When looking for a next vehicle, you should inspect it very well, before you purchase it.
Sellers often value their classic cars very highly. It can be tough to get a good price, but it’s important to remember that profits are the goal. Try your best to haggle for a fair price – otherwise, you may end up regretting your purchase. Do not believe claims of “mint conditions”, since it is extremely tough to prove that. Try to negotiate a price that will allow you to record a profit later.
Short vehicle history
If you’re thinking about buying a classic car with a short history, think again. While it may be appealing at first, you’ll likely have a hard time selling it later on since nobody likes mystery cars. The best idea is to get a car from a first (or maximum second) owner, as it becomes almost impossible to trace back history of cars with more than 3 owners.
Mileage is crucial for the price of classic cars. If you want to make money by flipping old cars, you should avoid buying cars with high mileage. Cars that have been driven a lot tend to be less valuable than cars that haven’t been driven as much.
Flipping classic cars is not for everyone. Investing in classic cars can be a great way to make money if you’re passionate about them. However, it’s important to only get into the business if you’re also thinking about the money part. Otherwise, you could end up losing a lot of your investment.