Investment is a smart way of building wealth. With how popular investment has become, more and more people are learning more about it. With this, there are now various paths to investment. You don’t need physical cash to start investing. Investment can be as straightforward as buying and stockpiling a Patek Philippe wristwatch. It can also be buying stocks in the stock market.
Another investment path is the collectible car investing style. It is the specialty of many car enthusiasts. While it might seem absurd to some, the logic is the same as stashing money in the stock market. When you buy cars as an investment, it is the same as investing in coins and watching the market rise.
Buying collectible cars is an investment style. But, not too many people know about or understand how it operates. This article looks into this form of investment and answers the question of whether or not it’s a good investment idea.
How Does Investing In Collectible Cars Work?
You might think this is a new investment, but millions of people are involved in car collecting. There are various ways people engage in collecting and investing in cars. The three most prominent pattern is;
- Flipping and reselling old cars
- Buying limited unit cars and reselling them
- Storing vintage cars for future profits.
Flipping & Reselling
Now, this is practically the most common car investment idea. Someone could buy a 1966 Lincoln Continental for less than $10,000, undergo complete bodywork on the car, and then resell it for twice the actual price. It’s an exciting way of making money and investing.
Those who buy vintage cars and flip them for money invest a percentage of money into working on them. Once the car has been put into shape, it’s flipped for a higher amount than the buying price.
Purchase of Limited Unit Cars
For those looking for modern car investment ideas, this is one of them. This investment method allows people to buy a high-tech luxury car with limited units. They stockpile them and later on resell them for profit. For instance, for cars like Bugatti, McLaren, Lamborghini, and many other cars with limited units, collectors buy them, wait a few years and resell them to others.
Storing & Reselling Vintage Cars
Certain cars are regarded as high-end collectibles and they can be the best investment cars. They are usually classic cars from brands like Porsche, Ferrari, Alfa Romeo, Bugatti, McLaren, and many others. Most owners have had these cars sitting in their garages for decades.
Recent records show these cars bear more profit than most coins and stock market investments. The majority of the time, they are resold during auctions. After years of collecting and storing them, they are resold for seven-eight figures. The price skyrockets when it’s connected to a renowned figure or they have historical importance.
Best Investment Cars You Should Consider?
People don’t only buy cars to provide them with transportation. They also buy them as investment properties, and these are for cars whose values will go up in the future. So, if you’re considering investing in collectible cars, here is a list of collectibles to look out for.
- 1978-1982 Porsche 928 (77% ROI)
- 2004-2006 Porsche Carrera GT (80% ROI)
- 1992-1993 GMC Typhoon (83% ROI)
- 1994 BMW 633 CSi (73% ROI)
- 2007-2009 Honda S200 CR (59% ROI)
- 2007-2010 BMW M6 Convertible (58% ROI)
- 1987-1988 BMW 535is (62% ROI)
- 1984 BMW 633CSi (73% ROI)
- BMW 540i (72% ROI)
- 1986-1991 Mercedes-Benz 200SE-W126 ( 95% ROI)
- Mercedes SL R129 (75% ROI)
- Audi R8Mk1 (35% ROI)
How to Choose Investment Cars?
Though once considered a risky investment option, many classic cars are becoming good investment plans. But car investment shouldn’t be your concern if you start investing. This investment style is for those not looking to make the greatest financial profit quickly.
So, if you are one of those, here are things to look out for when choosing an investment car.
- Go for car models you only feel passionate about
- Learn about the history and different models of the car
- Research the current value of the car to get an idea of its possible value
- Focus on buying stock cars. Original models of classic cars appreciate faster.
- Go for cars with only a few produced units.
- Go for cars that come with rare but worthwhile features.
- Go for cars with extensive documentation of the car’s ownership, including competition and historical facts. It gives future buyers the urge to bid on the car.
- Buy cars with significant historical value. For instance, the early generation of iconic cars like the Ford Bronco or BMW M3.
- Go for vehicles that have an iconic appearance and have stood the test of time.
- Buy collectibles that have a documented history of competing in popular motorsport activities.
- Buy cars that prominent people have previously owned; it’ll bolster the interest of future buyers.
Just like cryptocurrency investing is a way of growing wealth, investing in car collectibles is another solid way to grow wealth today. However, before making any purchase, always research the car thoroughly.