While there is a growing range of asset classes available in the modern world, classic cars is one that is often overlooked by aspiring investors. This does a disservice to the incredible profits that can be achieved by trading classic cars, however, with models such as the Aston Martin Zagato having recently sold at a Sotherby’s auction for the staggering sum of $14.3 (£11 million).
Investing in a new vehicle can be somewhat of a minefield, however. Not only will you want to drive away with a high-quality vehicle, but you will also want to get a good deal for your money. Not just this, but you will also want to make money off the auto-mobile when the time comes to sell.
Future Classics
The best way to tick all of these boxes is to purchase future classic cars. If you can determine what a future classic will be, then you know that you are investing in a top quality vehicle and you will not be paying the price tag of a current classic. Once it reaches “classic” status, you will be able to resale and earn a tidy sum.
Identifying Future Classics
The value of investing in a future classic is clear, but how do you know which will increase in value? Knowledge is key, so you will need to carefully analyse the market and see which cars have a sharp increase in value. You should also keep an eye out for vehicles that have slowed in production and are hard to find.
Another way to identify a future classic is to look at new cars which have taken the industry by the storm, and then consider the first-generation of this auto-mobile. The Ford Focus RS is a good example, as the third-generation hit the roads in 2016 and has amazed critics and motorists alike. Due to its success, it is likely that both the first and second-generation’s value will soar. You can still find these vehicles for affordable prices when you shop at used car dealerships, with Motorpoint being one example.
Maintenance
Purchasing a future classic is only one step to earning money off the vehicle, however, as it must also be well maintained. You should stick to the maintenance schedule (found in the manual), keep it clean both inside and out and drive it regularly. This will keep it in top condition, which will be important when it comes time to sell on.
By investing in a future classic, you could earn a fair bit of money once the vehicle becomes hard to find and is in high demand.
It can be tricky to identify what these auto-mobiles will be in the future, but with careful analysis and knowledge of the industry, you should be able to find an affordable vehicle that will increase in value in the near future.
