A classic car can be a good investment in the hands of the right owner. Financial benefits include no road tax and appreciating value. However, classic cards also come with their financial pitfalls. Taking some of the following advice might help you to avoid such costs, and ensure that your classic car purchase doesn’t drive you into debt.
Know what’s hot, and what’s not
Not every car over a certain age is rising in value. If the car isn’t rare and there’s no demand – chances are it will be worth very little for a long time to car. Other models such as the VW Thing and Lamborghini Islero that have previously appreciated have more recently been plummeting in value as the market starts to become saturated and buyers realise such cars aren’t so rare. Such vehicles can make great purchases, but if you ever plan to sell them, you may make a huge loss. Find a vehicle that’s still relatively cheap and swiftly rising in value, and you’ve scored a win.
Skip the dealerships
Dealers will always charge a commission cost on top of the sale, as well as knowing their pricing a little better, making it less easy to find a bargain. When shopping for a classic car, go off the beaten track a little and try and find an independent seller. Prices will be cheaper. There may also be more room for negotiation.
Watch the mileage
Classic cars are likely to have a lot of miles on the clock. Beware of cars that are at the end or over their mileage. Not only are these likely to depreciate in the future, insurance is likely to be extortionate and a lot of costly repairs could be round the corner. Your ideal purchase is a car that’s been kept in a garage most it’s life and only taken out for the odd drive. That said, you may be able to find a vehicle that’s over its maximum miles and has since been fully restored and renovated.
Get creative with insurance
Insurance is likely to be high on a classic car, so you may need to get creative. Finding a company such as One Sure Insurance may be good for securing a cheap package deal that could include other vehicle insurance and property insurance. Consider raising your voluntary excess, securing your car and possibly housing it in a garage. All this will lower your rates.
Find a cheap and reliable mechanic
Classic cars are likely to run into faults more often than modern cars simply due to their age. Find yourself a cheap and reliable mechanic that may be able to sort you out with a loyalty rate. Those that are handy under a bonnet meanwhile may be able to save costs by doing repairs themselves. With less electronics and computers to worry about, classic cars are often much easier to fix. Parts can be tricky to find, but you won’t need the advanced tools and electrical training that you might need fixing up a modern car.