Classic car investment can be a great way to make money and invest your money insomething that’s going to accumulate value.
A1 Auto Transport have worked in the transportation area for investments like these for a number of years now and have formulated some thoughts on what makes a good investment.
Rule 1: Following the Money
There are some cars you can be sure will always do well. There has been a general downturn in the market, but despite it, Ferrari 250 GTO became the most expensive vehicle ever sold last year at public auction where it went for $48.4m. There are some models that have a serious following to a point where there will always be a person ready to buy one, and the owners have the ability to enter the most exclusive car events. One brand that has dominated this list is Ferrari, with the 250 LM, 250 GT California Spider, and the 250 GT SWB being in the category that included the Jaguar D-Type, McLaren F1, the Aston Martin DB4 GT Zagato, and the Porsche 550 Spyder.
Rule 2: Following the Formula
If the top tier of classic cars is not something you are interested in, then there is a general rule of thumb you need to follow, and this is something that most successful cars will follow. The first rule is that the car you should consider needs to come from prestigious marques such as Lamborghini, Ferrari, Aston Martin, and Porsche. The next rule is that the car needs to have been produced in limited numbers. You should preferably choose one that was homologated for racing and has some success on the track. The car should have been driven by A-list celebrities in the past. This might seem superficial, but this is not the case: celebrities usually choose to ride in the most stylish cars, which weeds out cars that are not appealing.
Rule 3: History
When people are buying a classic car, they are not only getting the machine, but they are also buying the story that comes with it and want to become part of it. When a car has a fantastic history behind it, it can end up commanding a lot of value compared to other almost identical versions of the same car. This is the reason why a battered 1968 Highland Green Ford Mustang that Steve McQueen drove has a value of $4m instead of $20,000 it would have been if it didn’t have a story. This is also the reason why the Ferrari Pope John Paul II got as a gift from Enzo was sold for $6m, which is eight times the value of the car. Classic cars that have a history of celebrity ownership tend to have a higher value, especially the ones connected with motorsport. Cars that are last or first of their type, cars with racing provenance and those that have low mileage will always have a demand.
Rule 4: Buying the Best
One common thing in all the classic cars that were sold over their estimated value in 2019, is that the cars were best in their type. From Maserati’s to Minis, the most original or best restored are going to attract a lot of bids from buyers. This is why you should never compromise when it comes to buying classic cars. It is a good idea to pay way more for a car that is going to hold value instead of going for a cheaper option that is not going to. When you have chosen your classic car contact A1 Auto Transport to get your newly acquired vehicle safely home.
Rule 5: Making Friends
The public doesn’t know about most of the classic car sales. Many of the best classic cars out there change hands through one-to-one sales and brokers, which means you need to be part of this world if you want to get the best ones. Finding a broker or dealer that is going to help you with this process is important. Trust needs to be there: the broker needs to know what it is you are looking for, that you have the cash ready, and you are going to go through with the deal they arrange. You also need to trust that the car the broker finds is the right one, and it might be a good idea to do smaller transactions because it will help in building trust on both sides. Establishing such relationships can take time, but they can be rewarding, especially in a small world like that of classic cars.