Buying a used car will save you money, but a classic, muscle or antiques cars may actually make you money. You still have to choose your car carefully, but these cars usually increase in value unlike your typical car which decreases in value as soon as you buy it. This is not your typical investment, but you may consider it as alternative after you cover everything else. What do you think?
It may be a guy thing, but I always loved cars! It started when I was very young. I remember doodling in my second grade class with my first design of a car. I have no artistic ability, but I did design hidden headlights before I ever saw my first one. It was years later that I finally saw a 1936 Cord that had hidden headlights. Imagination is a wonderful thing, I wish I would have pursued it, but at six or seven years old it was just a doodle! A few years later I remember playing all sorts of car games.
I am not suggesting that I was special or even unusual because all boys like cars, but I may have been a little more fascinated than others. I particularly like the classic cars of their day. The 1950”s were filled with them such as a 1957 Chevy Bel Air convertible, 1957 Ford Thunderbird, 1957 Corvette to just name a few. There are many more from other decades, but these are some of my favorites. The 1960’s had the Pontiac GTO, the original Chevy Camaro, Ford Mustang and Dodge Charger, Porsche 911, Jaguar E type (XKE) and the Shelby AC Cobra.
If you bought any of these cars and sold it years later, it would fetch considerably more money that you originally paid for them. How would you know that any of these cars would increase in value? It helps if you knew something about cars! Cars as an investment is no different than any other investment, you need to do research to make good decisions. Luck has nothing to do with it! If you take the time to do a little research, you would find that there were signs, but you had to know where to look.
An old car does not equal a classic. It is in most cases, just an old car that you can pick up cheap. It usually takes twenty (20) years to become a classic. That is a long time to own a car to see if it will become a classic. The other choice is to buy one after it becomes a classic. The definition if a classic car is between thirty (30) and forty-nine (49) years old. Fifty (50) years and older are considered antique cars. The wells know names such as Ferrari or Mercedes Benz has done very well in recent years.
Lesser known names such as the American classics have done well too. The purchase price is generally much lower and they still increase a great deal too. A classic car is usually buying a classic car means you want to keep the miles driven down to maintain its value. Using it to commute to work or to go shopping is probably out of the question. You either should buy it in good to excellent condition or commit to restoring yourself. It will probably get other people’s attention when you drive it, so you may only drive it occasionally.
Buying a classic car requires scrutiny because it is not enough to just make sure it is in decent condition. You must make sure everything is original or it is worth considerably less. Service records, restoration work quality and attention to detail are very important. It is no longer just transportation, it is an investment! Research the car and all of its peculiarities. Find out all you can about the seller and have the car checked out by someone who knows about that particular classic car.
Buying a classic car is no different from researching a company when you want to invest in it. The more you know the better decision you will make. This kind of investment is not for everyone, but it is much more fun than just owning stock in a public company. At least you can drive around your investment. I would love to do this, but I do not know enough about cars to make it worthwhile. It becomes very expensive to outsource everything, particularly the expertise.
Many wealthy people will buy assets such as classic cars, coin collections, antiques, silver or gold, art and many other alternative investments to diversify their portfolio. It may satisfy some other part of their ego, but it also happens to increase in value over time. Buying assets that increase in value is the single characteristic of wealthy people. It is not the only one, but it does not have to be limited to only wealthy people. You can do these things at a much lower investment level and still benefit from the experience.
Investing in classic cars has always been one of my goals. I do not need a collection or even the most expensive cars. One of my neighbors bought a 1957 Porsche 356 Speedster Carrera convertible. I remember the day he brought it home. It was beautiful! I remember going over and asking him about it. I remember he said it was a lot of fun to drive although not as comfortable as the new ones. The thought of using it for a number of years and selling it for more than I paid for it just makes it all worthwhile.
The financial side of investments is important! No one like s to lose money! Cars are not your typical investment and require much more research than your average investment. Not only before you make the investment, but after. It takes additional capital to maintain the car, store or warehouse and perhaps restore the car. Unlike a stock, you may not be able to sell it easily or at a profit. Buying a classic, muscle or antiques cars may a great investment for the right person.
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Buying a classic, muscle or antiques cars may a great investment for the right person.