There is something quite exquisite about the idea of driving one of the few models of the 2.7-liter 1976 Porsche 911 S, isn’t there? Be it for the elite, the nostalgia, or the feeling of success, the possession of a classic car lightens up the gray routine. Moreover, it can bring celebration not only to your heart… but also to your wallet!
As the world economy recovers after the 2008-9 crisis, people continue to invest more and more in tangible luxury goods rather than stocks and bonds. And classic cars are in the lead in performance indexes of valuables, outperforming wine, art, and watches. According to Hagerty, a collector insurance company, collectible Ferraris alone have shown an astonishing increase in value by 62% for the past year.
Investing in a classic car is worth it
Here are some reasons that may persuade you that investing in a stylish classic could be your destiny:
- Classic cars are usually produced in limited supply thus making a valuable collectors’ hard asset! If you do your research and know your math, you might turn out to be in possession of the only model left in the world.
- Classic automobiles are a good investment if you don’t want to simply keep your cash in a bank. The bank interest rates are never worth it anyway.
- If you are a car guy (or a car girl) and you have the resources, this could be the most suitable hobby for you! It is like collecting art – it requires just as much knowledge and appreciation for details and uniqueness – but it is increasingly more profitable.
- There is a possibility that a vintage Jaguar E-Type could become your new sweetheart! Once you start taking care of your classic car, you might get so attached to it that you wouldn’t want to sell it. What better than a true love relationship that lasts forever?
- The search for your classic will be an adventure in itself. The more unique the car model is, the better is the potential for appreciation in the future.
- It will definitely bring some nostalgia but it will also make you stand out among the clutter of mass production in the automotive industry. It is very likely to increase your self-esteem, too.
- Classic car auctions continue to increase in number and frequency throughout the whole country. You never know what you may find on your next visit – the excitement grows with every new year, and new city!
- After all, why not let that Aston Martin DB5 get you some more of the James Bond style which drives women crazy?
- You have the chance to join one of the clubs of classic car enthusiasts in the country. You will meet new people, exchange knowledge and get advice on maintenance tips. If you have an entrepreneurial spirit, you may decide to start such a club in your country as well!
- Even if you just keep the car in a garage without doing anything to it, in a few years, you may be a millionaire!
- The benefits of owning shares are not even close to the excitement of riding in a Ferrari 400 (and we are being modest). Buying with your heart and not with your wallet is sometimes the smarter option!
- Did we mention that James Bond look? Just a reminder: Women love it!
Before making a spontaneous choice to put your money one of your all-time-favorite babes, make sure you are aware of some difficulties you might face along the way.
- Keep in mind the total cost of ownership! A classic car is not simply the price you pay for it, but also the additional costs of refurbishing, maintenance, insurance and storage. It adds up. Not to mention transporting a classic automobile to and from car shows or other events.
- With the growing trend of investment in vintage rides, there is a constant increase in the cost of labor and part costs for restoring a classic as well.
- Be aware that this is not a market for amateurs. You need a great amount of knowledge in order to evaluate and appreciate the right model and how much each rusty component in it is worth. As much as we don’t like it, for every investor that earns from his risky choices, there are hundred others that lose tons of money.
- The illiquidity of a vintage car will unable you from quickly exchanging it for cash when you are in need of money. You may have to think about the future needs of your family in advance.
- Did we mention the budget limitations? Some of the best models may cost up to $30,000,000.
- Motoring organizations advise to wisely make your choice of a classic – if you are not knowledgeable (or simply not lucky) enough, you might as well be buying a “death trap”. The professionals say that classics are not resistant enough to handle a collision with modern vehicles. So you have to keep that in mind and adjust your driving.
Finally, before putting your savings in a vintage muscle car, make sure you check what’s hiding in your parents’ wooden barn! If you are the lucky type, you may as well encounter what car collectors call “a barn find”. Very often, the real treasures hide under layers of dust and scrap. Or to give you a more precise hint – there might be a 9.2 million jewel hiding under the old yellow magazines!
If in the end you decide you are not willing to invest in a most-wanted 1960s classic, then you may as well give yourself the pleasure of riding in the oldies that Cubans drive as taxis! You can find beautiful classics restored by the local mechanics everywhere around the streets of Cuban cities. If after all the investment estimates, you’ve become less of a big vintage enthusiast, you might be just as happy with a glass of rum and a cigar on a Havana beach instead!