Classic cars are actually a great way to invest your money, depending on a few very important facets that is though. The first thing to keep in mind is if you actually know what you are doing and have been around cars for a while. If you don’t know what you are doing and thought that it seems like a good idea then prepare to be disappointed and lose a lot of money.
The recent monetary returns on classic cars have been quite impressive as of late. Classic cars have been giving investors some pretty stellar returns. For example The Historic Automobile Group Index also known as (HAGI) has been tracking exotic cars that includes classic cars reported an increase of 39% in classic cars.
Another group called Hagerty, an insurer, in classic cars shows that cars are rising 61% over a four-year span between 2009 and 2013. These numbers sure are impressive and could be a goldmine for an investor who knows what they are doing with classic cars.
There are a few questions and aspects to take into consideration when looking at this data. Some of the questions to ask yourself as a potential buyer and investor is to look at the underlying between owning one of these classics is. Is this a childhood dream of yours to pickup one of these cars.
Also what can you offer and bring to the table in terms of skills in restoring these cars or negotiating to buy one. Sometimes some of these cars can have some difficulty in selling them. If the main goal is to make a profit with a clearhead this can be done and disappointment will be avoided.
Skills to Think About
If building up a car from the ground up like a Chicago limo is of interest to you and if you have any background in mechanics then that is an invaluable skill in dealing with old cars. A lot of old cars will be priced at reasonably low levels if there needs to be a lot of work done to them.
Now that does mean that you will be responsible for buying the replacement parts, but at the same time with a mechanic skill set you wont need to outsource and can get some good deals on parts and labor.
It is a difficult thing to do, to invest in any market without having an overall and in depth understanding about what it is you are investing in. For classic cars you have to know where the market is, where it’s going and where it has been. All of these are necessities to know when factoring in any future profits.
Once this has been taken care of it is time to factor in the costs that are going to go in this investment. It’s fundamental economics that you want to buy low and spend less then what you are going to make if you want to turn a profit a couple years down the line.
These cars require things like insurance and maintenance as well as storage costs because they have to be placed somewhere to be stored. It comes down to knowing what you are doing if you want to invest in one of these cars.