Why You Should Be Investing In Classic Cars

Classic Trends - January 25, 2021

Car collecting has gained popularity as a hobby among car enthusiasts, specifically vintage cars. The appeal of classic cars is usually their unique designs, limited production runs, and overall rarity. The rarer the car, the more money it is likely to be worth. 

Many people also enjoy working on classic cars because their structure is more simple than modern cars, without computers and complicated systems. When a classic car is properly cared for, it can last a lifetime.

T-Bird with White walls

With the growing popularity in cars, they are now more valuable than ever. Between 2004 and 2014, classic cars increased 500% in value, according to the Knight Franklin Luxury Investment Index. Classic Cars have been selling for record-high prices, and investors who track the market may reap the benefits.

Unlike the average modern car that depreciates immensely the moment that it is driven off the lot, rare and unique cars appreciate in value as they get older, and even become antiques. This is simply because of the supply and demand relationship. For many, vintage cars represent the nostalgia of their youth. Later in life, they often possess the funds to purchase a vintage car, to drive or to just keep as a collector’s item. 

With any investment, it is important to do prior research before buying. Not all cars increase in value, so it’s crucial to pick a car that stands out and will be marketable when you are ready to sell. However, the market continues to be in great shape and values across many makes are still increasing. 

Green Classic Car on Street

The Bottom Line

Car enthusiasts enjoy classic cars because of the nostalgia, and the aesthetic and pride of owning a vintage collectable possession. There is often a sentimental value that makes an investment worthwhile. Making a smart purchase ensures that your investment will pay off, especially if you plan to hold on the car for a couple years or more. With any investment, there is a risk, but since classic cars remain a non depreciating asset, there is a good chance that buying a classic car will pay off financially for you in the future.

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