CLASSIC CARS AS AN INVESTMENT – IS IT WORTH FINANCING YOUR CLASSIC CAR DREAM?
- May 15, 2017
- Finance Information, Uncategorized
- Posted by Turbo Finance
- Comments Off on CLASSIC CARS AS AN INVESTMENT – IS IT WORTH FINANCING YOUR CLASSIC CAR DREAM?
Before you race out and get the keys to your dream vintage car, STOP! It might not be the investment you think it is. Classic cars can mean issues with finance. Make sure you choose the right vehicle and the right classic car finance broker! If you’ve had enough of your corporate run around sedan or ‘soccer mum’ 4WD, it might be time to enjoy the finer things in life. Are you keen to feel vintage leather on your seat or the rumble of an iconic American muscle car on your next road trip? Classic cars are a dream purchase for many car enthusiasts – but how do they work as an investment?
Classic cars – investment or money pit?
Classic cars are loud, proud and loads of fun, but are they a good investment? The answer is not a simple yes or no. It really depends on your situation, your bank balance and the make of the vintage car you plan on purchasing. Just like modern cars, classic cars can lose value over time due to wear and tear. On the other hand, certain brands, like Aston Martin, Ferrari, and Lamborghini, are well known for being profitable classic cars over the long term.
If collecting cars as an investment is something that interests you, don’t discount iconic Aussie car manufacturers like Holden and Ford, either. A 1973 HQ Holden Monaro Coupe recently sold on Gumtree for $48,000 and a 1967 Ford Mustang sold for $59,800.
The key is to do your research and consider the many factors that impact value, like mileage and conditions, before you buy. If you need to finance your dream car, Turbo Finance isn’t afraid to take on a classic! Classic car finance brokers can be hard to find, phew, you found one!
Things to consider before buying a classic car
- Does it drive well? This can mean anything from ensuring the engine is mechanically sound, to determining how the car handles on the road. If the engine is not running as it should, this could result in a hefty bill and a major inconvenience.
- Are parts still in production? As cars age and go out of circulation, companies slowly discontinue making spare parts. Should your classic car break down and need repairs, it could be tough finding a suitable substitute.
- Is the body in good condition? Whilst your dream car may be shiny on the outside, it could be full of rust and damaged interiors on closer inspection.
- Does it meet safety standards? Safety standards have evolved dramatically over the years, leaving classic cars lacking significantly in safety features. Be sure to choose one that meets basic legal requirements, at the very least.
- Can you afford it? Old cars are not cheap to buy or repair. Consider talking to a reputable finance broker before making your decision
Classic cars as an investment can be rewarding, especially if you are already a car enthusiast or active collector. But whether this is your first classic car, or one of many, it’s not an investment decision that should be taken lightly. Weigh up all the factors and make a decision that is right for your situation! For the best shot at getting the right loan for your car, speak to a specialist classic car finance broker – we love cars and we know what’s a lemon… and what’s a peach!