Classic cars are one of the few areas in life where passion and investment can overlap. While many classic car buyers are indeed enthusiasts, there are many who are investors too. Often, they are both.
With a long track record of increasing in value as they age (as opposed to the commonly agreed-to notion that cars depreciate as they get older), and a call to a better era where cars were made with class and made to last, it’s no wonder why there are people looking to make these investments a hobby too.
Doing you due diligence when buying your first classic car:
Classic cars include all the cars that came in the 80’s or earlier. If you have less cash to spare, buying a vintage automobile can be a hassle. This is often because you must decide between passion (which car looks the best) and savings (how much you actually spend.)
Of course, if you lean more towards the enthusiasts’ side, then savings hardly matters when buying a vintage vehicle. In any case, just like any investment, one needs to do their due diligence and research to ensure that they’re entering the deal at the best price.
What you should consider
There are few aspects that one needs to consider before buying a vintage car. In this article, I’ll be providing what can be considered a buying guide that can be utilized to purchase automobiles. Here is a list of certain tips that should be considered:
- Examine the car carefully and if you notice even a speck of rust on the car, then avoid buying it! Most high quality classic cars are made of metal that does not easily rust. In fact, rusty cars are not considered to be factory original even if you get them fixed.
- It is better to buy cars that are referred to as “number-matching” car. If the car falls under the category of “number-matching” car then this means that the engine, transmission etc., of the car is linked to the VIN number of the car. Number-matching cars tend to generate more money as the parts are all original and “branded”, hence it can be considered as a pretty safe bet.
- One common consideration should be kept in mind – just as with buying any second hand car, if your classic car has low mileage then it will help generate large sums of money when you sell it in the future. Low mileage means that the car has not been used much and it is more or less in a good condition. However, there are some cars that tend to have high mileage and people tend to buy it mainly because they have this perception that one cannot go wrong with cars that have been used more. If people are considering buying vintage cars from the perspective of investment then low mileage cars are a better option. Vehicle history reports can be derived to determine the actual condition of the car that the buyer is willing to buy.
- Would you like to drive that car? This isn’t just for the car enthusiast in you. You need to buy a vehicle that is popular, or that shows promise of being popular in the future. Not only does it have to look nice, but you should consider whether supply of that particular vehicle is limited. Avoid buying a car just because it was reasonable at an auction and the buyer had enough money to purchase it.
- Everything requires the user to do their homework before they decide to purchase a particular good that is quite expensive. Now with the evolution of Internet and other technologies, users have more access to the information regarding the classic car market, how it operates and what kind of cars are available in the market and at what price? The articles that are available online, can help people get an idea which model they can purchase and at what price. In depth analysis can be done of the resources that are available with the buyer and the resources that they might need. Users can easily identify the condition of the car and hence they can skip any car that falls under the category of fair condition.
- Users should buy cars that are built in small quantities as the more limited the numbers of the car is the more it will increase in value. The breakdown of vehicles is also available on the Internet and hence buyers can determine the car they wish to want. Limited numbers of colors mean the cars are expensive hence with time they will generate more money.
- Buyers should buy cars that are rare as the rarer the car is, the richer the owner is. Rare cars mean that the vintage automobile should have an element that is rare and is not available in other cars as well. If the car has a more unique option then it will make more money than other cars hence try to study the market in greater depth and detail so that you can purchase a much better option.
- Apart from this the gas-guzzlers of the vintage cars are cash generators. Muscle cars with huge engines are loved by every other man in this world and they are considered as one of the hot sellers. However, muscle cars are the one that don’t get a better gas mileage yet they can help generate a lot of money.
- Lastly, the cars that were manufactured and created way back in the 1980’s are considered to be a very good long-term investment as that type of cars are no longer created. As the cars ages, they tend to be considered as vintage cars hence their price automatically increases. However, the cars that were bought in the 1980’s are able to generate money now during the 20’s therefore people should wait for quite a long period of time in order for their cars to bring about a certain amount of money.
As with any high-ticket item, or with any investment actually, you need to do your homework before you take the leap! If you’re looking to keep the car in your garage as an ornament, then this guide may not apply so clearly to you. However, if you are able to appreciate how much upside there is to a classic car investment, then by all means, use this as a guide to your first classic car investment!
