When you see a classic car driving on the highway or sitting in a showroom, you can’t help but stare. They’re unique, shiny, and simply stunning in color and design. But, they’re more than just a pretty car.
Investing in classic cars is actually a fantastic way to diversify your investment portfolio. It’s one of the most lucrative collectibles in the world, surpassing coins and stamps. In fact, in the last ten years, classic cars have increased by 500% in value.
If you’re a car-lover and can appreciate the beauty and uniqueness of a classic car, then you may want to consider investing in one. However, because it’s just a niche investment, there are some things you should know before you write that check.
The Initial Investment isn’t Minimal
Your initial investment in a classic car is going to cost you quite a bit of money. So, you will need a hefty amount for startup costs. If you’re looking for a classic car that doesn’t need too much work done, then you can count on spending a pretty penny.
However, the return when you auction or sell it is phenomenal if done correctly! Classic cars are the only cars to actually increase in value instead of depreciating.
Choose the Right Car
Just because a car is old doesn’t make it a classic. Classic cars have special features and are symbols of a time in the past, which makes them collectibles.
Usually, a classic car will be the first to use innovative technology or design. If it has a history of racing, it can be even more valuable.
Before purchasing a car for your investment, do thorough research about the make, model, and the reason why it’s such an important classic.
Upkeep is Necessary
With a classic car investment, you’re going to have to maintain your investment by putting even more money towards it. To get the most out of your investment, you’ll have to restore it and make necessary classic car repair decisions. Nobody is going to want to pay top dollar for a collectible that isn’t in top quality condition.
Not only will the restoration and repairs cost you, but you’ll also have to take out a classic car insurance policy and pay for storage if needed. While the upfront costs of this investment may feel heavy, the payoff is absolutely outstanding.
Do Your Research
The best piece of advice we can give you is to do your research. Read as much as you can about classic cars and investing in them. Talk to as many people as possible who either invest in classic cars or work to restore and repair them.
Any and all information is helpful when it comes to making the right decision about whether or not to invest in a classic car. As we’ve been saying, the payout is fantastic, and it’s a fun project to take on to diversify your investments. Just do your research and find your passion!