Cars are an invention that began in the 1880s, since then, new advanced models followed to what we see and use today. Those cars that were used in the 80s and 90s are precisely what we refer to as classic cars today. They were the rare kind of cars that dominated the market decades ago.
However, the discussion of whether the classic cars are a wise/good investment has no definite answers. On this website, we can not really say yes or no to that question due to many factors that prove the market is volatile.
By using the word volatile, we mean that the classic car market at times is on a high and at times on the low. Like for instance, in 2019, the classic car market is suitable for a willing investor. Below are the factors that prove that the classic car market is volatile;
Factors affecting the classic car market.
The model of the classic car you invest in is a key determinant to whether the investment is worth a fortune or a risky investment. Some car models from the 80s and 90s are today selling like hotcake while some other models will just earn you a couple of bucks. Some of the classic car models that are really selling today are;
-Honda Integra Type R.
-Renault Sport Megane R26.
-BMW 3 E46.
Who drove this car? Just like there the car J.F Kennedy was assassinated in attracts so many tourists in the USA, so is the classic cars associated with particular celebs. A good example is the Aston Martin DB7s, which was associated with James Bond 007. This made the car’s value to go high. The Ferrari 275 GTB is yet another example of a classic car model whose value appreciated due to its connection with Steve McQueen.
If you invest in classic cars without a solid history or connection with a famous personality or celebrity, you risk losing the money.
The scarcity of any commodity also makes its value to go up. A good example is the 1957, Ferrari 335 Sport Scaglietti. The car model sold for $28million in 2016. This means if you must invest in classic cars, invest in those models that are rare in the market.
Depending on the above factors, it is your decision to invest in the unique classic cars that will easily attract buyers. If you miscalculate your steps, you might end up losing the money.