If you’re buying an antique car, you’re making an investment. In fact, it may be one of the largest investments you make. These cars can cost thousands of dollars, but once you restore them, they can double in value or more. The longer you own a classic car, the more it may be worth, especially if you have classic car insurance to keep it safe. But, of course, there are some risks in making this investment.
Why are Classic Cars Worth So Much?
This is the question many non-car enthusiasts ask. What makes these older models worth so much money? For some, it’s because they’re no longer made, and few of them can be found in good condition. For other cars, it’s because people simply loved the make and model. Some antique cars have a history to them that makes people want to own them, while others have been featured in television shows or movies and are now highly sought after.
Making a Good Investment Classic cars have been recognized as an art form, and like any type of art, you have to have some knowledge of them. Deciding on your investment can be difficult, even if you do know what you want to purchase. Do you spend more money to purchase the classic car that’s been restored, or do you go for the cheaper investment but spend extra time making it look amazing? Both can be great investments, but one does require you to put in a lot more time and work into this hobby.
The Market Overall, the classic car market has increased in appreciation. Even with the financial issues of the late 2000s, the classic car market has met or even exceeded expectations. However, experts note that the growth rates seen in the market may not necessarily be sustainable in the long run, so don’t expect classic cars to always gain value.
However, many agree that they are solid investments, especially the older cars that will never again be made. There are always new people getting into the car market, too, so new buyers are keeping the demand for these antiques high.
Start Small Don’t assume you will immediately be able to purchase a car worth millions unless you have a lot of money to invest. Most people start out fairly small and then sell their classic cars in order to buy new ones. They continue to trade up until they can purchase the more expensive cars that they love. One way of doing this is to purchase cars that need restoration.
After you repair them, you can make back your money plus some. Just remember to always get classic insurance for these cars so your investment is protected while you’re restoring them.
Keep your Investments in Good Shape While the classic car market may be doing well, a car that’s in bad shape won’t sell for much. Make certain that your classic cars are in good shape. Detail them often, take each one out for a drive on a regular basis, and take them to an authorized mechanic as soon as they start acting up.
Also make certain you have classic car insurance on each one just in case something happens. The professionals at Leland-West insurance can assist you with a policy if you need one.