Most people who restore classic cars do so for the love of the vehicle. However, even collectors often want to know if they have a good investment in their car restoration. After all, you’ve spent a lot of time and money bringing an old, forgotten vehicle back to life. So, what does the investment side of car restoration look like? Is a car restoration a good investment?
The Idea of Investing
According to Investopedia, an investment is any asset or item obtained with the purpose of generating income or taking advantage of a later increase in value through a sale. The general adage is “buy low, sell high” but investing is actually more nuanced. Essentially, anything that you put money into now in hopes of having it grow in value over time is an investment. The inherent risk, of course, is that your investment won’t grow in value.
Education is Key to Investing
The best way to protect yourself against investment risk is to educate yourself. The more you know about what you want to invest in, the better equipped you are to make good choices. For classic car restorations, this means learning what goes into car restoration, including cost and time. It also means learning what kind of value restored cars have and what kind of vehicles are in demand from other investors. The Historic Automobile Group International keeps an index on the value of classic and vintage vehicles. Meanwhile, membership in groups like Classic Car Club of America can help you make connections with other collectors and investors so that you have an authentic look at what people are really buying.
Tips to Help You Get Started
You know what it means to invest in a classic restoration. You have taken the time to study the collector market and made connections with other collectors. Now let’s look at a few tips to help you maximize your investment potential.
- Choose your restoration vehicle carefully to ensure that you make a sound investment
- Ensure you can purchase the necessary parts with ease and within your budget
- Research cost for parts and maintenance before you purchase
- Take time to learn how to do at least basic maintenance repairs yourself
- If you don’t have one, find a financial planner who can help you maximize your investment and manage your risk
Importantly, don’t be afraid to also be a collector. If you begin restoration and realize, you’re not going to want to let go of this car – that’s okay. Classic cars have engendered themselves in our consciousness for a reason. Give yourself room to be both an investor and a collector.
Keep Your Investment in Top Condition
Whether your classic car is an investment, a collection driven by love, or both, you want to keep your vehicle in tip-top shape. Contact us if you’re restoring a classic car or need regular maintenance.