How to invest in a classic car

How to invest in a classic car

Investing in vintage cars and vintage motorcycles is an increasingly profitable investment, even if it is not an investment to be able to advise all small savers.
Car collecting has also become a type of investment that can make a lot, even if it can not be considered a safe investment in the short term, but becomes a safe and profitable investment in the long term, if you follow certain precautions.
There are various factors that influence the classic car market, which we see a growing trend of + 111% in 5 years, from 2011 to 2016, continuing to grow.

Investing in Classic Cars

Buying a historic car has been affirming itself for a few years as one of the most profitable investments that can be made, but we must be very careful to respect some unwritten rules.

Only in Italy there are about 4 million “historical cars” cars with more than 30 years of life according to the new Highway Code (no more than 20 years, as long as 2016), of which the majority are under 10 thousand value euros, it must be said however investing in vintage cars is not as difficult as investing in art, we do not have to be very prepared, let’s say, given that there are certain and tangible parameters to be able to evaluate how the brand, the model, the year of construction, the chassis number, the state of conservation, etc.
The most popular and “attractive” cars, that is, that have a very moving market, are the Porsche and Ferrari brands, even if there are also other very appreciated historical brands, even if Ferrari is Ferrari, that is the most appreciated car in the world.

ACI historical register for vintage cars: what is the use, how to register and what a car is worth.

In our country there is no precise legislation for vintage cars, this must be said clearly.
We take as a reference the ACI Historical Register, an initiative that has only recently existed, that is from 2013 but that, given the importance of the ICA we want to take as there is a parastatal body such as ACI which has a register of historical cars, a register that distinguishes which models and brands can be considered collectible cars, in practice only ACI members can have their cars evaluated by experts who they will check:

  1. If the car is in good condition
  2. If the vintage car must have a restoration,
  3. If the old car is equipped with all the original components,
  4. If it has been well restored (ie using original or reconstructed components identical to the originals).
  5. If you have all the documents in order.
  6. Based on these parameters, the experts will make an assessment of the car on the basis of which you can take out insurance so you can circulate it (and maybe protect yourself from any theft or fire).
  7. PS: the historical cars, that is those registered in the historical register and that have more than 30 years of life, do not pay the property tax, ie they are completely exempt from the car tax.

The registration in the ACI historical register has a cost of about 200 euros (30 + VAT for the beginning of the procedure, 120 euros + VAT for registration in the historical register). It must be said that if you are not close to one of the centers and you want to do a ‘home evaluation’ is possible, of course you will have to pay more.

Buying a Classic Car

One of the most convenient methods to buy a car is that of special vintage car auctions and that of judicial auctions.
Then of course there is a whole vintage car market online and specialized dealers, that is, dealing with vintage cars, over the normal new and second-hand models.
In addition, the classic car fairs are particularly recommended for those who want to face the world of collecting vintage cars to get an idea especially on prices and the most valid models to buy, but also to those who want to invest their savings in these interesting works of human ingenuity, which are increasingly appreciated.

The vintage car market, a positive trend for the next 10/20 years

Usually we do not launch into reckless predictions, but here the speech seems rather simple.
Collectors of vintage cars have a certain age, search for the cars of their youth and still have an essential feature: they have money to spend on superfluous (let’s call them savings to invest in our case) and want to combine profit (the investment that can make money) to the pleasure: the vintage machine that can be used for a Sunday outing and that with time gains value.

On the other hand now the over 50 and those who will soon have more than 40 years and who do not have children or have older children, have a well-paying fixed job and the possibility of saving money, are very likely to do this kind of investments, because in addition to increasing the value of its capital, it is a very profitable investment compared to the other types of “conventional investments”.
The average life of these people is constantly increasing, so the desire to have fun, now there are no more “grandparents who watch grandchildren and stay at home cooking” thing that happened until a few years ago to people who had just passed the 60 years old, today he retires at 67 years of age and 70 years of age make gymnastics, they do vacations and have an active life, up to at least 80 years and over.

Most expensive car ever sold:

 Posizione

 Marca e Modello

 Anno

 Prezzo in Euro

 1
 Ferrari GTO
 1962
 28.501.000
 2
 Mercedes W196R
 1954
 21.638.000
 3
 FERRARI 275 GBT/4 S Nart Spider
 1967
 20.103.000
 4
 Ferrari 275 GTB/C Speciale
 1964
 19.723.000
 5
 Ferrari 357 plus Spider Competizione
 1954
 13.448.000
 6
 Ferrari 250 Testa Rossa
 1961
 11.981.000
 7
 Ferrari 250 GT California Spider
 1961
  11.369.000
 8
 Ferrari 250 LM
 1964
 10.683.000
 9
 Ferrari 340/375 Berlinetta
 1953
  9.322.000
 10
 Ferrari 250 Testa Rossa
 1957
  8.913.000

 

As you can see from the 10 most expensive vintage cars of all time, collectors’ preferences tend to all Ferraris and especially to Spiders, that is, machines that can have a reclining hood and therefore can travel in summer discoveries.

How much do you earn selling a Classic Car?

Difficult to say, almost impossible, but we can take into account 2 important parameters:

The classic car market has grown by 11% in the last 5 years, therefore around 20% per year.

WITH ALL THESE PARAMETERS WE CAN CONCLUDE THAT:

If you have this passion, money saved, a nice garage and want to leave something concrete to posterity, investing in vintage cars is a nice idea and it is an investment that we recommend.

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