Many investors would tell you not to invest in a car for various reasons. The first reason is that it’s a depreciating asset. Another reason is that it’s a high-maintenance expense. Lastly, you can live without a car.
But there are ways you can make an investment in a car and get more than just your money back. One known way is by buying classic cars.
What Are Classic Cars?
It’s estimated that 25% of vehicles in the United States are more than 16 years old. However, not all of these cars qualify as classics. For a car to be considered a classic, it must meet specific criteria.
There are different types of classics, but the three most common are antique, vintage, and contemporary.
An antique is a vehicle at least 45 years old. “vintage” refers to a car between 25 and 40 years old. A contemporary classic is a vehicle that’s 20 years old or newer.
A car must also have significant historical value to be classified as a classic. This can include the vehicle’s design, performance, rarity, and popularity.
Why Invest in Classic Cars?
There are several reasons why you should invest in classic cars. One reason is that they tend to appreciate value.
While new cars depreciate when you drive them off the lot, classic cars often appreciate over time. Some classics have increased in value by as much as 20% per year.
Another reason to invest in classic cars is that they’re a hedge against inflation. As the cost of living increases, so does the value of classic cars. As a result, people are willing to pay more for something rare and valuable.
Lastly, classic cars can be a source of passive income. If you own a classic car, you can rent it for special occasions like weddings or parties. You can also join a Classic Car Club or lease it to a collector.
If you want to invest in some classic car models, here are some of your best options.
Ford Mustang
The Ford Mustang is one of the most popular classic cars for sale. It was first released in 1964 and has been in production ever since.
The Mustang is known for its design, engine, and affordable price tag. It’s also one of the most recognizable cars on the road.
The Mustang is an excellent option if you’re looking for a classic car that’s fun to drive and easy to maintain. It’s also a worthy investment. For example, a classic 1965 Shelby Ford Mustang was sold for over three million dollars. It was a legendary car driven by racing legends Chuck Cantwell, Jerry Titus, and Ed Leslie. Experts believe you can quickly get $100,000 selling the same model without the legendary status.
Porsche 911
The Porsche 911 is another popular classic car. It was first released in 1963 and is still in production today
The 911 is known for its sports car design, powerful engine, and luxurious features. It’s also one of the most expensive cars on the market
If you’re looking for a classic car that’s both fun to drive and a great investment, the Porsche 911 is a good option. For example, a 1973 Porsche 911 Carrera RS sold for over $1 million at auction.
Jaguar E-Type
The Jaguar E-Type is a classic British sports car that was first released in 1961. Its sleek design, powerful engine, and affordable price tag are known for their elegant design. The E-Type is a great option if you’re looking for a classic car that’s fun to drive and easy to maintain. It’s also an excellent investment. For example, a 1963 Jaguar E-Type recently sold for over $5 million at auction.
These are just a few of the best classic cars to invest in. If you’re thinking about buying a classic car, be sure to do your research first. However, if you want to add more value to these cars, consider these options:
Detailing
Classic cars with intricate detailing can always fetch a reasonable price among consumers. Additionally, bringing your vehicle to a car detailing company is very affordable. It’s one of the best ways to maintain the value and quality of your classic car.
Customization
Another way to add more value to your classic car is by customizing it. You can add custom features like an upgraded sound system, a new paint job, or performance modifications. Customizing your car will make it unique and increase its value.
Hydraulics
If you want your classic car to stand out, consider adding hydraulics. Hydraulic-assisted suspension is popular customization for classic cars. It gives your vehicle a smooth ride and makes it look cool.
These are just a few ways to add more value to your classic car. If you’re thinking about investing in a classic car, be sure to do your research first. With the proper care and attention, your classic car can be an excellent investment that will appreciate over time.
