Investing In Classic CarsPosted on 2018-02-09
Investing In Classic Cars
It seems every week you hear about new short-term or long-term investment opportunities. Bitcoin is up, then it’s down, then up again. The price of gold fluctuates a lot and the stock market can even feel risky when it’s rising, like a bubble waiting to burst. So what other options do we have for safe, long term investing? One of them could be sitting in your garage right now.
The Knight Frank Luxury Investment Index tracks the value of goods used as investments. Items such as jewelry, art, coins and wine that can be collected, and increase in value over time. According to their report, In the last 10 years investments in classic cars have outpaced all those other luxury goods. As you can see in the graphic below, over the last 10 years investments in jewelry on average have increased by as much as 156%. Putting your money into fine wines over the last decade would give you a return of as much as 176%. Just be careful not to accidentally drink away your retirement savings. But nothing comes close to the return seen in classic cars, tipping the scales at an amazing 456% increase over the last 10 years. Try earning that kind of interest in your savings account!
This obviously doesn’t mean all old cars are going to increase in value. You need to be selective in choosing a car that is less common, has appeal and will continue to have appeal in the future. Don’t expect to get rich on a mid-80’s Cutlass Supreme. But a well maintained classic or muscle car could make you money over a long-term investment. There are a few factors that have contributed to the rise in collector car values in recent years and the internet has played a large role. It’s never been easier to research and find the car of your dreams. You can see photos, HD videos, read detailed descriptions and quickly compare vehicles that may be in different states without ever leaving your home. This has made purchasing a classic car easier, which in turn brings more buyers. And more buyers result in higher demand and increased prices.
If you’re interested in putting your money in some muscle, or your cash in a classic we have vehicles for all tastes. Check out our inventory online or come visit our huge indoor showroom. If you have a car already and want to cash in on your investment, our consignment program will put money in your pocket!
Back To Blog