Collecting vintage cars is an expensive hobby. Many collectors purchase vintage automobiles as an investment or for the pure love of classic cars, but more often, for both reasons. According to Knight Frank’s Luxury Index, the price of classic cars has risen by almost 400 percent in the last decade with last year’s vintage car market rising by 23 percent. Gary Axon from Goodwood Motorsport believes that vintage vehicles are proving to be one of the most robust and rewarding investments, providing that you invest in the right marque and model of vehicles. Even with the economic recession, the global values of classic vehicles are steadily rising. When investing in a classic car, keep a few things in mind:
Research Before You Buy
It was once very difficult to track transactions and movements in the world of classic car trade, but thanks to the efforts of banker Dietrich Hatlapa and the Historic Automobile Group, the birth of the first “Authoritative Independent Index” came about in 2007. Since then, the tracking of sales and auctions have been more well documented. The index contains a list of 50 cars worth a minimum of $75,000 each and only a handful built and belonging to an established community of collectors. The index clearly shows that their values have increased by 12 percent just in 2012. Experts suggest that reliable investments are those companies that have a respected history such as Bentley, Aston Martin or Bugatti, or cars with a rich racing heritage like the Jaguar or Ferrari. Even the more affordable Jag’s and Maserati’s are good buys. Increase and decrease in value can be attributed to factors such as well-known companies manufacturing amazing modern models that spark the interest in their predecessors or the celebration of a particular model’s anniversary. The James Bond Aston Martin DB5 has recently benefited from both factors.
Do the Buying Yourself
You don’t have to be a multi-millionaire to own classic cars. If you have the knowledge, time, money and a good garage facility then owning a classic car is a great investment. After buying, ensure you have enough funds for insurance and maintenance of the vehicle, and make sure to regularly check classic car magazines and forums to know what’s available in the market. Buying directly requires paying close attention to maintenance as spare parts are quite expensive and hard to find.
Maintain Quality Insurance Coverage
Collector car insurance will maintain the value of your collector car, in addition to ensuring its security. Contact Classic Auto Insurance for a free quote, and excellent options for the best classic car insurance package to secure your vintage car.
Owning a classic car is a great investment that always pays if you are able to maintain the value of your car successfully. You can even maximize your tax benefits by being a classic car owner. Do your research, buy smart and your investment is sure to pay off.
About the Author
Drew Yagodnik is Vice President of Classic Automobile Insurance Agency, Inc. Classic Automobile Insurance Agency has been protecting collector, classic and exotics since 1992.