Investing in Classic Cars – has the bubble burst?
For a long time investing in classic cars has given excellent ROI of about 331.9% however in the past couple of years we have seen this slow right down falling about 14% since 2015.
Cars remain the best investments
Classic cars still remain a better investment compared to other investment items such as coins, wine and jewelry.
Those investing in classic cars have the added problem of storage costs, where as wine and other smaller items are cheaper to store.
You also have to consider maintenance, cars are made to be driven, if they are left too long standing this could cause damage to the engine, then your investment will plummet..
Brexit and classic cars
Whilst many are waiting to see the outcome of Brexit, this means that people who would normally spend their money on investments are holding back.
This has an impact on the classic car investment, and is probably the cause of the drop mentioned earlier.
Time for buyers
Whilst we are having a slight dip, this makes it a great time for those who are willing to take a gamble, its a buyers market at the moment meaning you can drive (sorry) a hard bargain when negotiating.
What to look for in a classic car you want to invest in
Finding a car which has not been modified in any way since leaving the factory is very difficult, but hey that’s the whole point.
You are ideally looking for something 40+ years old, without any modifications and they are about if you look hard enough.
Generally when we buy a classic car we are buying with our heart and not our head. This is dangerous ground, so try to keep emotions in check.
As a rule most of us will be buying a classic car we can use on a sunny dry days.
To visit the odd car show, and meet with other like minded folk that share the same passion for a certain make or model or have a love of classic cars in general.
What You Should Consider When Buying A Classic Car
Parts: the older the vehicle and the more unusual, these will take time to find and will generally come with a high price tag.
Storage: having access to a dry, secure and fairly accessible garage. If you do not have this you could be looking at extra rental costs for the same. Its not ideal keeping your precious classic car street parked, for all the obvious reasons.
Mechanically minded: How good are you with a spanner? Being able to tinker is part of many owners hobby, however if you are not that way inclined you need to consider the costs of getting experts in to help maintain your car.
Insurance: For many classic car owners we wont be doing too many miles in the vehicle. If your vehicle is of high worth you could be paying through the nose for insurance which works out at a lot of pounds per mile.
If you do go ahead and invest in a classic car then it is well worth joining a classic cars owners club associated with your vehicle.
Here you will find good advice and it will be very useful when you come to requiring parts.
All in all although prices are slightly down, and Brexit is on the horizon, classic cars remain a good investment, and now is a pretty good time to buy one.