Throughout the past 15 years, it has been generally easy to make decent money off the sale of classic cars. In fact, just about everything from a Fiat 500 to a Ferrari 250 GTO, increased its worth. If you took the time to invest in a decent car and maintained it, there was almost a guarantee that you would make a very generous profit.
However, as times have become more complicated, so too has the classic car market. By the end of 2018, the Hagerty Price Guide, which monitors the values of classic cars throughout Europe and the UK saw a staggering drop of 26% in overall values. This is due to some of these being overpriced cars such as the early E-Type Jaguars. Whereas models such as the early Porsche 911 skyrocketed in value, but due to the small production numbers, its value settled on its own. Some classic cars have been held by investors in hopes that their overpriced collections would continue to rise in value. However, when they say the value simply stall out, they decided to release their equity and in many cases just took a loss on the vehicle.
One must wonder with the current state of the economy and world if a class car is a good investment. In some instances, it might be. Just a couple of years ago a similar article would have a full list of the models that you should invest in, however, that is simply not the case. It is best to follow a few simple rules that will help you make the best purchase possible.
The world of class cars is much more complicated now. The following article from Whites Bodyworks is designed to pave the way for you and allow you to find vehicles that you are not only going to love but will become golden investments over the years.
Follow The Money Trail
There are a number of cars that are always going to be decent investments. While the overall market has seen a downturn, the Ferrari 250 GTO was the most expensive vehicle ever sold at a public auction at a staggering $48.4 million Models like this are always going to have a fond following and people will be ready with money in hand to buy. While the Ferrari is going to be the dominant force in the market, others include the Aston Martin DB4 GT Zagato, the Porsche 550 Spyder, the Jaguar D-Type, the McLaren F1, the 250 LM and the 250 GT SWB, and the 250 GT California Spider.
Follow A Specific Formula
If you are not interested in purchasing the top of line classic cars, there is a general guideline you will want to follow. You will want to seek out cars that have been manufactured by the more prestigious companies such as Porsche, Ferrari, Aston Martin, and Lamborghini. Additionally, you will want to seek out limited number vehicles. They should have been produced for racing and some success on the track. Last but not least, they should have been driven by an A-list celebrity in their heyday. We understand that this may seem to be a superficial point, but most celebrities will seek out only the best of the best and this is a good starting point for a collector car.
The Importance Of History
People are always looking for a good story to go with the car they are looking to purchase, so it is more than just a machine. Cars that offer an incredible history have the ability to command a much higher value than those with little to no history. This is why the 1968 Highland Green Ford Mustang that was driven by the great Steve McQueen in Bullit is valued at an incredible $4 million as opposed to the $20,000 for a non-story vehicle. Additionally, this is why you will see that the Ferrari Enzo that was gifted to Pope John Paul II sold for an outstanding $6 million, almost 8 times higher than the Hagerty Price Guide value. Cars that have won races, had celebrity owners, are either the first or last of their make, and have extremely low mileage are always going to be high in demand.
Purchase Only The Best
If there is one thing we learned for all vehicles that were sold over their estimated value in 2019 auctions, was the fact they were the best of the best. Whether it be a Maserati or a Minis, the ones that were original or expertly restored simply had the most bids. During such difficult times, there are a number of collectors who are trying to consolidate their collections and just keep their best on hand. You do not want to compromise, it is best to pay more for something that is going to hold its value over time.
Gain Some Car Friends
The vast majority of car sales take place at private venues. In many instances, a number of sales are simply person to person or through a broker, and you will need to start making connections in the classic car world. Unless you already have a number of connections, you will have to find either a dealer or broker that will work with you to find those golden opportunities. Trust is going to be absolute in this relation as they will need to know exactly what you are looking for and be ready to buy the instant an opportunity presents itself. You need to trust in the dealer that they will find the perfect car for you and you may feed to build on smaller transactions first. These types of relationships take time to build, but in the world of classic cars, they are often quite rewarding.
Buy With Your Heart
One final tip is to always buy with your heart. A classic car is a luxury item, so always buy the one you are going to love the most. With this in mind, even if the old car never reaches the value you anticipated, you own something that gives you pleasure and enjoyment, and that is a feeling you cannot beat!