How to Invest in a Future Classic Car
Investing in a Classic Car can be one of the most rewarding asset classes to put your money into. No longer will your funds be hidden away in a bank or sat in a stack of gold bullion in a vault; a classic car can be both an excellent investment, and an enjoyable purchase. It is certainly one to diversify your investment portfolio. Some classic cars command well over their original buy price and can outperform other investments if held for long enough.
The trick to maximising your return is to look for ‘future classic cars’, rather than those already commanding the top price. A future classic is not going to be the most desirable car on the market right now. It will certainly not be the car changing hands for a premium. Any vehicle which seems currently to be undervalued could be the one to provide that all important return when you come to liquidise your investment. Mid-range makes can be perfect for finding an affordable future classic – BMWs and Volkswagens from the late 80’s and 90’s have been increasing steadily over the past few years, and won’t break the bank to invest in now.
The cost of upkeep also should be taken into consideration. Luxury classic cars cars can require more expensive parts, have larger engines and be more temperamental than a reliable mid-market run-around. For example, an old Audi will be much cheaper to run than an old Aston Martin – both in fuel and in restoration costs. You can also save money on storage if your future classic car looks subtle enough to park on the street. A 1950’s Bentley would require proper dry covered and secure storage, but a 1970’s Rover could sit in front of your house and not draw any attention. Alternatively, if you aren't planning on using your classic car, long term storage can be the perfect place for your investment to safely sit and increase in value.
If you have your heart set on a particular model, look for a low-mileage, good condition vehicle with as few owners as possible, or if you keep your old family car for long enough, you might even find it becomes a future classic car investment!