Classic Cars as Investments

Classic car prices have obviously risen over the last decade, and even though there are currently more buyers than sellers, many financial advisors consider investing in classic cars a complex pursuit. The demand for good classic cars has grown due to several different factors including a global increase in wealth, the growth of the Internet and more collectors’ oriented publications. Another factor in favor of classic cars as investments is the fact that they can also be easily transported to other markets or countries if necessary to secure a good price.

When there is more information about classic cars available, more people get interested in them. These factors combined have resulted in a marketplace where many classic cars have risen nearly 500% in value over just the last ten years. Although there are no current indications that the market will soften anytime soon, there are a lot of people jumping into the game today and many of the people buying classic cars that cost over $100,000 today are investors, who see classic cars as an alternative asset class. Not surprisingly, many buyers today are from other countries and they are looking for a good place to park their money for a while. Many of those foreign investors also pay cash for their classic car purchases here.

These factors all contribute to rising prices in the market, just as a car’s pedigree and history of who owned it, where it was stored, who worked on it, and what they did to it are also important. People who make money on classic cars often have both an automotive education and enough financial discipline to buy and sell at the right time and price.