In today’s economy, investing your hard-earned savings in stocks can lead to a wild rollercoaster ride with the potential for many disappointing returns. So, are there advantages of prognosticating in blue-chip automotive investments? Knowledgeable investors with an affinity for unique objects have begun to make classic cars a significant part of their portfolios. While many collectors can earn significant returns on such vehicles, many of them are car aficionados who find their greatest rewards come from the experience of owning and maintaining the vehicle.
Today’s internet makes it very easy to track the cars that interest you. Many sites have valuation tools, newsletters and blogs to guide you along. Also, there has been a recent upsurge over the past several years of televised and well publicized classic collector car auctions that have generated increased demand for such vehicles.
Investing in a classic is far more than merely a numbers game. Purchase a car that you like or one that you yearned for at a different point in life. The fondness for a particular vehicle and the shear pleasure of owning it can soften any downturns that the market experiences. In my humble opinion, a classic vehicle in which you take pride and build an attachment, is far more satisfying than watching the results of the S&P 500 on a daily basis.
Do not purchase a classic on impulse! Purchase from a trusted source or a reputable classic car dealer because you may end up with a vehicle that requires far more in restoration costs and repairs than you could ever hope to recoup. Always use a third-party inspector – if the seller is not willing to let you have a thorough unbiased inspection – move on and do not look back. Remember that owning a classic goes beyond the purchase; consider maintenance, storage and insurance costs.
Ultimately, if you purchase your classic astutely, you can find yourself with an investment that not only provides excellent returns on paper but also brings you pleasure and happiness and on those days when the DOW is down 1000+ points, you can simply open the door to your garage and smile.