How to Invest in Classic Cars

How to Invest in Classic Cars

1965 Chevrolet CamaroRecent reports and trends have confirmed what classic car enthusiasts have known for years: collectible cars are a great investment. In fact, in today’s market, according to Forbes magazine, classic cars are sometimes better investments that high-end real estate. The returns on rare and collectible vehicles, both foreign and domestic, are higher than most alternative investments.

1966 Lincoln ContintialThis doesn’t mean that the old Yugo that has been collecting dust in your garage for the last two decades is now worth a fortune. Investing in classic cars is both a science and an art. You need to know the market, understand what is desirable, and make wise choices about what you buy and sell. Not all classics are going to give you big returns.

There are a few factors that are important to consider if you want to acquire classic cars as investment pieces. The first, and perhaps most important, is rarity. The good thing about this quality is that you can quantify it. If a model was only made in limited numbers, odds are it will be worth more money than a more mass-produced vehicle.

According to experts, recognition is also important. There is no sense in investing in a car so rare that nobody else knows what it is. Sometimes rarity can go too far. Popularity is another important factor, but one that is difficult to measure. What buyers and collectors like changes and it can be difficult to know what will be popular ten or twenty years down the road.

1969 Chevrolet ChevelleIf you are thinking of making investments in classic cars, take some important advice from Knight Kiplinger, a classic car enthusiast as well as a business expert. Buy first for the love of the car. Markets may be showing big returns on classic cars, but investing in a car is costlier than a traditional commodity or stock investment. If it doesn’t pan out as an investment, having a car you love that you need to hang on to for years is a good consolation prize. And, of course, don’t forget to ensure your precious investment.

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How to Invest in Classic Cars
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classic cars are sometimes better investments that high-end real estate. The returns on rare and collectible vehicles, both foreign and domestic, are higher than most alternative investments.

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2 Responses to How to Invest in Classic Cars

  1. This is great advice!! From an experienced car collector, here’s another hint for you. Don’t always trust the seller’s description and pictures. We like to think that everyone in the world is honest and operates with 100% integrity, but that’s not always the case. I have been burned several times by sellers on several sites so the bad apples are not limited to just one place. Remember, pictures can make something look a lot better than it really is! Make sure to do your research before you invest in a car, and make sure you know what you are getting what you want. Thanks for sharing!

  2. Jack says:

    Interesting that no Classic Cars were mentioned.

    The term Classic Car is misused all the time.

    The Classic car era as defined by the Classic Car Club of America ended in 1948 and is limited to low production (usually) hi priced automobiles such as Auburn, Cord, Duesenberg, Packhard and other high end automobiles.

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