Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
How to invest in a classic car
An old set of wheels can be a shiny new investment — but watch out for risks.
Guides
Shop By Car Type
Classic cars are becoming an increasingly popular investment, and some models are seeing high returns. But like any investment, your money is at risk.
Are classic and vintage cars sound investments?
Yes, they can be. But it depends on what car you have, and how rare it is. For example, a 1965 Aston Martin can go for $1.75 million, while you can find quite a few 1965 Mustangs in similar condition for around $40,000.
What do classic car investors look for?
Investors want a car that is desirable and increasing in demand. Even choosing the right color and trim can dramatically alter the value. Investors will look through auction listings to find actual sales figures and gauge the possible demand. They also want a car that is unique or rare.
Classic car experts recommend looking for a vehicle in the best possible condition that you can afford. That means little or no rust, original factory paint, an interior in excellent condition and mechanically complete, preferably running. The better state a car is in, the more it’ll be worth. Also, look for vehicles that haven’t been modified, staying true to their original factory specifications.
Documentation also adds significant value to a car. It helps an investor see how well the owner maintained the vehicle, and it makes the car more desirable to future buyers. Under your ownership, continue to maintain and add to the car’s paperwork.
What costs or risk factors should I be aware of?
Just like any investment, purchasing a classic car as a long-term speculation can be risky. The bottom can fall out of the market and the vehicle is always at risk of damage, fire and theft. Make sure you have the vehicle insured while it’s in storage. You can compare classic car insurance to get an idea of what that will cost you so you can calculate how much it will affect your possible returns.
To preserve a car’s condition, it’s imperative you have a dry storage place. Some owners use humidity tents that reduce corrosion, prolonging the car’s metalwork. It’s best to keep rubber and plastic components out of direct sunlight too, as these can degrade and devalue your investment.
Engines and other mechanical parts still require attention while in storage and should be protected against pests. If you’re new to classic cars, consider hiring a professional to help you.
How do I choose a car?
If you’re planning on buying a classic car as an investment vehicle:
- Set a budget. Decide how much money you’re willing to spend before choosing a car. Factor in both its initial price and any costs for restoring it. Compare your auto loan options if you’re going to finance the classic car.
- Decide how much work you’re willing to do. Are you looking to buy a car in perfect condition, or would you spend a little less money and a little more time fixing up a car that needs some work?
- Research the value history of cars in your budget. In addition to its value now, look into how much the car was worth a year ago, five years ago and ten years ago. Ideally, you’ll want to choose a car with a value that’s been steadily increasing.
- Research the history of any cars you might buy. Once you have your top choices narrowed down, research the production history of the car. Cars that are unique, limited edition or made as part of a small batch are more likely to have a value that increases over time.
- Inspect the car. If you’ve found a car you like, inspect it yourself or have a licensed mechanic take a look at it before buying. Pay close attention to issues that are likely to get worse over time, like rust or pitting.
- Buy the car. Once you’ve found and bought the perfect vehicle, make sure you have a safe, dry place to keep it. Check on its value regularly to decide when it’s the perfect time to sell.
Compare loans for classic cars
{"niche":"USFCL"}
Bottom line
Classic cars can make valuable investments — but they can also be risky investments. Do your research and consider talking to a private accountant before deciding how to invest your money.
And if you’ve decided that a classic car is the right route for you, compare car loans that can help you get the perfect one.
Frequently asked questions
Picture: Shutterstock
More guides on Finder
-
Investing strategy: How growth stocks can make you money
Learn how to strategically find and invest in booming companies.
-
How to invest in blockchain stocks
Comprehensive guide on blockchain stock investing, benefits, risks, main stocks, blockchain ETFs, and more.
-
Investing in car stocks
Top car stocks and ETFs that track the category.
-
Investing in insurance stocks
Benefits and drawbacks of investing in insurance stocks.
-
Heacock Classic car insurance review March 2021
Insure your classic car or race car at agreed value with Heacock Classic, but you’ll have to look elsewhere if you have recent claims or major violations.
-
Investing in copper stocks
Copper is an industrial metal with many applications. Here’s what you should consider before investing.
-
Investing in lithium stocks
Lithium is a precious metal with increasing demand. Here’s what you should know before you invest.
-
How to invest in the FTSE 100
The FTSE 100 is the UK’s most famous stock index. Here’s how you can invest in it today.
-
Grundy classic car insurance review March 2021
Protect your classic as well as your daily driver with steep liability coverage all on one policy.
-
J.C. Taylor classic car insurance review March 2021
Protect nearly any classic vehicle at least 19 years old with no-fuss, standard coverage.