- Classic cars, being tangible assets, appreciate over time, providing solid long-term financial returns.
- Besides financial gain, classic cars offer an emotional connection and entry into a community of passionate enthusiasts.
- The rarity of classic cars due to their limited supply drives their demand and market price upwards.
- Owning a classic car combines the thrill of investment with the enjoyment of a hobby and lifestyle choice.
- Regular maintenance of your classic car’s tires, engine, battery, bodywork, and interior sustains its value and condition.
Are you looking for a long-term investment to give you a solid return? Consider investing in classic cars. It’s a tangible asset that has proven to be a wise investment for several years. Classic cars offer something unique, both financially and emotionally. Here’s what you need to know about classic cars in the U.S., why you should invest in them, and how to maintain your classic car.
Classic Cars in The U.S.
It’s estimated that about 25% of cars in the country are more than ten years old. However, not all of these cars are considered to be classic. For a car to be considered a classic, it must be at least 25 years old and have some significance.
In the U.S., several popular classic car models, such as Chevrolet Corvettes, Ford Thunderbirds, and Plymouth Barracudas, can fetch a hefty price when sold in pristine condition. It’s estimated that there are about five million classic cars in the country today.
Reasons To Invest In Classic Cars
There are various ways you should invest in classic cars. Here are some of those reasons:
1. Classic Cars Appreciate in Value
Classic cars are unique assets that appreciate value over time. Classic car prices have risen steadily for the past two decades, with some cars increasing by over 500%. Classic car owners can expect to earn returns over indices such as the S&P 500 over the long term.
2. Tangible Asset
Classic cars are a tangible asset, providing investors with security. Unlike stocks or bonds, which market fluctuations can influence, classic cars offer a more tangible form of investment. Classic cars are a relatively stable investment compared to alternative assets like art and wine.
3. Passionate Community
Classic car ownership isn’t just about the financial benefits – it’s also about the emotional connection and experience. It’s a community of passionate enthusiasts who love the craftsmanship, design, and history embedded in classic cars. Numerous car shows, rallies, and exhibitions are dedicated to showcasing these amazing vehicles.
4. Limited Supply
Another reason why classic cars are a smart investment is their limited supply. The older the car is, the rarer it becomes. As supply decreases, demand and prices increase. Classic cars with low production numbers or special features command a higher price in the market.
5. Fun Factor
Investing in classic cars is also about having fun. Buying, owning, and driving a classic car is an enjoyable hobby that offers a sense of pride and accomplishment. It’s an investment and a lifestyle choice that connects you with a passionate community of like-minded enthusiasts.
Ways to Keep Your Classic Car Maintained
There are various ways you can keep your classic cars maintained. Here are five effective ways:
Tire Maintenance
One of the parts that will deteriorate faster on a classic car is the tires. You should regularly check your car’s tire pressure and tread for any signs of wear and tear. It’s also important to rotate your tires regularly to ensure even wear across all four tires. If your tires are too damaged, then it’s time to visit a local tire shop. They can replace or repair your tires for a fraction of the cost.
Engine Check-Ups
You should regularly check your car’s engine for any signs of damage or wear and tear. You should look out for oil puddles, smoke from the exhaust, or any strange noises from the engine. If you notice anything out of the ordinary, then it’s time to visit a trusted mechanic.
Battery Maintenance
Your battery is another essential part of your classic car that needs regular maintenance. You should check the voltage of your battery and make sure it remains at 12-14 volts before starting the engine. If your car has an old lead acid battery, replace it with a more modern AGM or Li-ion battery.
Bodywork Maintenance
A classic car’s bodywork is the most crucial element in its aesthetic appeal. Regularly waxing and polishing your car will help protect the paint from fading or chipping. If necessary, you should also repair any dents or scratches with a professional body shop.
Interior Maintenance
You should also regularly vacuum your car’s interior to keep the dust and dirt at bay. If you have leather seats, you should use a leather conditioner to keep them in good condition. You should also check the carpets for any signs of wear and tear.
Investing in classic cars can be a wise financial and emotional move. Classic cars offer a tangible asset that can appreciate over time. They also provide an emotional connection with other enthusiasts in the community. However, you should maintain your car properly to ensure it holds its value and remains pristine. Proper maintenance can make your classic car a solid investment for years.