Classic, antique, and vintage are names used interchangeably to define ‘old’ cars. Classic cars are cars that are more than 20 years old, while antiques are over 45 years. On the other hand, vintage cars are those that were manufactured earlier on, between 1910 and 1930. The fact is that with the various definitions out there, you will come across overlapping classifications of classic cars.
However, in this article, we are going to shift our focus to classic cars.
Has the thought of buying a classic car has crossed your mind?
If classic cars are a constant fascination, then you have most probably heard of the Sultan of Brunei – Hassanal Bolkiah. The 74-year-old ruler has one of the world’s largest classic car collections from all the renowned car manufacturing companies
Unfortunately, we are not nearly as wealthy or obsessed as the Brunei ruler is when it comes to classic cars, but our enthusiasm for these rare automotive might drive us to purchase one or two classics. It is not uncommon for men of a certain age to suddenly get interested in these rare vehicles. When the adrenaline generated from driving superfast cars finally goes down, a car enthusiast might decide to purchase classic cars as a collectible or investment. Rich and wealthy men like The Sultan, among other celebrities, understand that as much as these cars are a costly affair, they are an investment that only appreciates.
So, whether you are looking for a collector’s item or a car to use daily, you need to make an informed decision during the purchase.
Classic Cars as an Investment
It is not uncommon for the thought of investing in collectible cars to cross your mind. It is not only a past-time activity for the wealthy, but can be an investment opportunity for the average American. The 2000 MINI Cooper and the 1971 MINI Clubman 1275 GT Historic Race Car are some of the not-so-expensive popular models.
For more details on the most iconic investment-worthy MINI models, check Dyler.
On the other hand, there are collectible cars that easily cost an arm and a leg. In most cases, they are owned by wealthy car enthusiasts. These are high-end collectibles that can easily make you huge amounts of money.
When seeking classic cars for a chance at an investment opportunity, it is essential to factor in a couple of things. First, understand that not all classics are a great business opportunity. Go for ones that have historical importance or ones that impacted consumer expectations in one way or the other. Additionally, you can go for one that was previously owned by a celebrity.
Classic cars are a good investment. However, just like any other money-making venture, it comes with associated risks. For instance, the car is likely to attract government taxes. Additionally, if it is damaged, restorations costs may be as high as the actual price of the car. The same applies to maintenance and repair costs during the time of ownership.
In general, there is uncertainty around the classic car business. The reason for buying a new car and keeping it for many years in the hope that it will be a collection is gambling. You may be one of the lucky ones to make a fortune from such a risky investment, but it is never a good idea to buy a modern car that promises to sell modern furniture for the next two decades. However, the trick is to buy a quality car, which will receive a bonus. It should also be unlikely to leave the market in the next two decades.
Factors to Consider When Buying a Classic Car
Purchasing a classic car may get you your money’s worth or turn out to be a colossal waste of your hard-earned money. A lot of considerations need to be in place before drawing that checkbook.
Let us delve into specifics.
Know what you want
Some classic car enthusiasts purchase these rare machines, not for their functionality, but unfortunately, out of emotions. Maybe, they have always wanted to own a specific car model or want a replica of their dad’s first car. All in all, you need to understand what it is you want. What are your model preferences?
Classic cars have big price tags, so you need to put aside your current desires, give up the eight-figure “old” car and think objectively. This is especially true when you buy it for your teenage son, not as a collection. In this case, you need to take into account, among other things, maintenance costs. If you have a chance, go for it by any means!
Last but not least, why would you purchase a two-door classic sports car when you intend to, now and then, take a cruise in it to the countryside with your family?
What about garage access?
Any mechanic does not understand the working mechanisms of the classics. Many of these cars use unique car technologies that are different from modern cars. In addition, two-decade-old cars wear out quickly when not in use for long periods of time. In this case, it is important to understand how your car works and to have a garage.
If you have no garage, make sure you know of a mechanic with a vast understanding of the classics; one that can readily sort any arising issues and give invaluable advice on the maintenance and restoration of the car.
Classic cars are often not expensive. One of the key questions is, “What can you get?” Your budget plays an important role in determining the classic car model. See how much you are willing to pay, taking into account maintenance costs. You can find old cars at different prices and find a car that fits your budget. Avoid cars that only show signs of rust.
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