If you’re a classic car enthusiast and you’ve collected quite a few gems, selling some of them may have crossed your mind. However, you might be hesitant if you’ve never sold a classic car in the past for profit.
So, can you make money buying classic cars? It is certainly possible to make quite a bit of cash from purchasing classic cars, as long as you’re strategic about the process. Here is an overview that can help you make as much money as possible buying classic cars.
Are the Cars You’re Purchasing True Collectibles?
Just because you think the classic cars you’re buying are collectibles doesn’t mean that others will agree. In other words, if the classic cars you’re investing in aren’t true collectibles, then you likely won’t make money if you even find a buyer. This is why it’s important to determine whether your cars are true collectibles before investing in them. How can you make this determination? There are some simple ways to determine if you should invest in a particular car.
First of all, is the classic car you’re considering investing in equipped with some type of unique technological advancement? Has it made history of some sort? Is it rare and extremely attractive? If so, then you could definitely be investing in a true collectible.
Don’t finalize the transaction just yet, as there are also some other considerations. If the car that you’ve been ogling that you think will make you some money has been previously owned by a high-status celebrity, then that will definitely contribute to its collectible status. Is the car highly sought after for some other reason?
The more of the desired criteria a classic car meets, the higher your chances are of ending up with a true collectible that you can easily sell for the price that you choose.
Beware of Possible Risks Involved in Buying Classic Cars
There are always risks involved in any type of investment, and buying classic cars is no different. Volatility is one risk that you should be aware of, because while a classic car may have been in high demand in previous years, two, three, or even five years from now, demand for that same vehicle may have declined substantially.
Another risk of investing in vintage cars that you should be aware of is that the entire process can be quite time-consuming. Not only could the process of locating the cars be quite extensive, depending on the specific situation, but if the cars that you do end up investing in require some restoration, then that could extend the time it takes to start making money even more.
Steer Clear of Car Shows
While car shows might seem like the ideal place to find the perfect vintage car to invest in, it’s actually the exact opposite. Car shows are for classic car owners to boast about their prized possessions while asking an exorbitant price for a car that is likely not as valuable as the owner states it is. It’s easy to get drawn into a smooth-talking owner who wants to sell you their car, but don’t allow yourself to walk into that trap.
Unless you know a great deal about a car at a car show and appraisal papers are able to prove its worth, don’t even consider purchasing one of the vehicles. There are many other places to buy the type of vintage car that will help you make the profit that you’re looking for.
Where to Find Great Classic Cars
If you’re feeling deflated about learning that car shows aren’t the best places to get the best deals on classic cars that you can invest in, then don’t fret. There are plenty of other ways to find vintage cars that are in great condition that can be purchased for cheap. However, it’s necessary for you to do your homework, as not all of these cars will be advertised. You must always be on the lookout for vintage cars that are available, and making it known that you’re seeking classic cars can make finding them easier.
Believe it or not, word of mouth can be the best way to find the amazing classic cars that you seek. If you strike up conversations with people and you mention the fact that you’re a classic car collector, then you might be surprised at how many people might tell you about classic cars that are available in their own garages or barns, or someone else’s. Classic cars that have been sitting in barns or garages can be like hitting the jackpot. Cars that have been left exposed to the elements can wreak havoc on the car’s exterior, dramatically reducing its worth, which is why cars that have been kept in garages are best.
However, vintage cars that have been stored in a covered location can be in immaculate condition once all the cobwebs, dust, and debris have been cleared away. So, if you hear about someone’s grandfather who has had a classic car in his garage for several years, you owe it to yourself to check it out. You just might find the gem you’ve been seeking.
Placing a Classified Ad
Another way to have classic cars come to you is to place an ad in one or more newspapers stating that you’re looking to purchase vintage vehicles. That way, you will have people who wish to sell their cars contact you, which can decrease the amount of research that is necessary.
As you can see, it is very possible to make a profit by investing in classic cars if you go about things the right way. However, if you begin purchasing cars hastily, then you could actually lose money. Whether you use a drone to locate classic cars that are in fields, or whether you opt for online auctions, finding historical cars that are in the best condition and that need the least amount of restoration for the cheapest prices will likely be the most lucrative ones.