Over the last 30 years, classic cars have appreciated in value. Investing in classic cars is not a guarantee that you will make a large sum of money. If you purchase the wrong vehicle, you could lose a lot of money. Many people worldwide love their classic cars. People obsessed with classic cars are willing to pay a fortune to own one. The collectable cars are ultra-unique and cool. However, keep in mind that today’s old cars will be classics tomorrow.
The collectable car market is very volatile. Over recent years, the price of classic cars has risen by 257% in just 13 years. In just 2014, the prices of classic cars rose by 12%. However, besides the fact that the price of classic cars has risen, the value of other classic cars has dropped drastically and won’t rise any further.
The only challenge in investing in classic cars is that not all models come with equal prices. Some classic cars appreciate value more than other cars. Therefore, you must do a research on the classic car you want to buy before you invest in it. Cars that have some association with celebrities or movies usually have a higher value.
For instance, the connection of James Bond 007 has made the value of Aston Martin DB7 appreciate. Any classic car that has a connection to Steve Macqueen also has a high value. It’s also worth noting that scarcity also affects the value of classic cars. The rare a collectable car is, the higher the value.
Classic car collectors also note which classic cars will be classics in the future. When you compare classic car investment to other investments, investing in classic cars is a risky proposition. Before you buy a classic car at an auction, bear in mind that you must pay for the cost of ownership like maintenance and insurance and storage costs when you decide to buy a collectable car.
Investing in a classic car can be an exciting auto purchase that you can ever make. It will pay off if you do your homework well when researching more on classic cars. Vintage and antique cars can cost you a dime while buying, restoring and maintaining. Collectable car insurance works differently as the value of cars appreciates instead of depreciating.
How to buy a collectable car
There is a wide range of options to choose from when purchasing a classic car. Before you get out your chequebook, think about what you want;
- Be cautious about the investment: making money out of classic cars can be difficult. It’s risky buying something just because you think it’s a good investment. The classic car market can be volatile. Experienced car dealers will advise you that the value of a collectable car is worth how much one is willing to dig deep into their pockets. Always put your focus on cars that will make you proud when you drive them around town.
- Decide on the use of the collectable car: Think of how you wish to use the car. Will you be driving it regularly or just for the weekend? Do you want to use it as a showoff? Or just sit it in your garage and never use it? your answer to these questions will give you the right idea of what classic car you want to purchase.
- Come up with an affordable budget: Coe up with a plan of what you intend to spend and adhere to it. don’t forget that it can get extremely expensive when it comes to restoration projects.
- Do your research: Always check out the average retail value to have a good idea of the starting price. Read on all the information that you can find. Check on price guides and auto auctions that will enable you to get a hint of the fair market value of the car you want to buy.
- Check mileage: With most used cars, the car is more worth it if the speedometer comes with fewer miles. However, don’t scare about buying a high-mileage car. Just ensure that the high mileage is worth the car price.
In a nutshell
Investing in classic cars is a risky business. However, they say with big risks comes big rewards. Today’s gas guzzlers can cost a fortune in 30 years to come when petrol engines get superseded by electric cars. Be sure to check out 240z for sale to check out some of the classic Datsun 240z on sale.