Many car enthusiasts see classic cars as a staple from a different time. Some classic cars have a rich history behind them and showcase significant moments in the automotive timeline.
However, many collectors only see classic cars as investments. But why do these people, with more money than most people ever make in my life, only buy classic cars as an investment?
Why Car Collectors Only Invest in Classic Cars
A survey recorded by The Classic Car Journal discovered that 30% of people looking to purchase a classic car in the next year are doing so for profit reasons. If that sentence made you wince, congratulations, you care about cars too. Ask any enthusiast who enjoys cars, and you’ll know there’s always more to them than money.
With that said, there is a business behind buying and collecting cars, whether they’re classic cars or supercars. Many wealthy people use cars as a way to bump their net worth. It’s also a way to “diversify their holdings,” which is an economic term for spreading their money around.
So many collectors will buy classic cars and never drive them, letting them be maintained for years and kept in good condition, then sold for a profit. But what exactly makes a car collectable?
What Makes a Car an Investment Vehicle?
For a classic car to become a collectable, there has to be something significant about it. Whether it’s a styling that’s aged rather well, or that it’s a piece of company history with a limited production run (rarity helps jack up the price). Sometimes, if a car is owned by a celebrity, that’s enough to make it a collector’s item as well.
Racing history also helps make a car a classic, especially if the car has won. In truth, investing in classic cars is a massive risk. So unless you have a lot of money to blow, you may not make it out unscathed.
Why it’s a Risk to Invest in Classic Cars
Unlike other collectable items, such as wine, cars need to be heavily maintained for years before they reach collector status. And many cars people think are going to rise in value over time may not.
You never know what’s going to become a classic car, even if you make all the calculations. Classic car value doesn’t come from a monetary standpoint. Classic cars have sentimental value, and everyone has different values they hold dear. Only when many people have the same appreciation for a classic does it skyrocket in value?
Conclusion
But in truth, you can’t predict what classic cars people are going to love and invest accordingly. To sum it all up, buy a classic car because you love it, not because you’ll profit from it.
Have 1 million naira and above to Buy or Sell Cars In Nigeria? Check carlots.ng
All rights reserved. Reproduction, publication, broadcasting, rewriting, or redistribution of this material and other digital content on CarPulse.ng is strictly prohibited without prior express written permission from CarPulse Nigeria - Contact: support@CarPulse.ng
