Do I Expect A Return on My Classic Car Investment?
If the answer is “yes,” your decision making just got a lot harder. If you think you’re going to buy a car with a guaranteed higher resale price than your purchase price, it’s going to be tougher to find that car for your first classic purchase - and you’re probably going to have to spend more to get it into your garage.
Now, if you’re thinking about getting into the classic car market knowing that you’re going to spend some money and possibly not make it all back - but you know you’re going to get more than enough enjoyment out of your purchase to make it worth it - then the whole world of classic cars opens up to you.
For example: Restoring a classic car almost always costs more than you’ll sell it for at the end of the process. You’re going to see some for-sale postings saying something like “Invested $50K; willing to sell for $30K” or similar. You may write one yourself in the future. This is all okay if you enjoyed driving and owning that car between buying and selling it.
Classic car investments are often as much about luck as they are about making an educated purchase, and it’s impossible to know exactly what a car will be worth down the road. (Imagine if you bought a Delorean before Back to the Future came out, for example.) If that kind of financial uncertainty concerns you...
How Much More Work Am I Willing to Do?
Since you’ve read this far down, we’re going to assume you’re willing to burn a few additional calories to make sure your car is worth purchasing at the right value. If you’re already thinking “okay, this is way too much, just let me write a check” - well, expect to spend a little more than you otherwise might have to.
Before you buy, you need to know where you’re going to look: Are you going to an auction? A dealer? A private party sale in a parking lot somewhere? You definitely need to get the vehicle inspected before you purchase, and you need to know what mechanic to take it to for an informed eye. You need to know how to write a bill of sale and what documents to have available. Once you’re the owner, you might even need to figure out how to get that car home if it’s not running … or if it’s too pricey to take onto the freeway on its way back to its new garage.
Owners of classic cars have to deal with additional detailing to preserve the paint and chrome. Extra maintenance to ensure things like seals, plugs and belts are in working order. Classic cars may come with special needs for the fuel system, you’ll want to know where to find parts for the car you’ve purchased, and if you didn’t do the research on price, you might always feel like you got taken for a ride - the overpaying kind, not the fun kind.
It’s a lot! We know. But even despite all these extra things to know, it’s still worth it. Trust us. Especially when you crank the engine and give it a rev. You’ll see.
