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Classic Car Investment Essay

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In 2015 a 1978 Ferrari sold for more than $35.7 million(Sullivan). Whether you are a car enthusiast or you just use cars to get back and forth from work this is an amazing number. A car that sold for more than 20x its original MSRP. How does this happen? Classic car investing is becoming the new stock market for the wealthy. Buying, storing, then selling cars for a profit sounds like a simple system, but can you really make money investing in classic cars? Auctions are now being televised and we see cars selling well over their original price tag. Even with these prices some of the sellers are winners and others, losers. There has to be a proper strategy for success or the auctions would be pretty empty. I believe the strategy can be simplified …show more content…

You can do this with restoration or performance additions. This can be easily debated by finding a great deal on a vehicle and reselling it to a collector or by storing a car for a significant amount of time, waiting for its collectability to increase. The classic market tends to be individuals with flush back accounts, but hope is here for the little guys. There is a little grunt work involved to save some cash, but keep your head up and wait for the right moment to pounce on the market and cash out your …show more content…

The same way we obtain the vehicles is the only way to get rid of them. An auction is risky, but there is a lot of money flowing and it is almost guaranteed to sell if accepted. Craig Jackson mentioned that to participate in the auction an entry fee is needed as well as a 8-10% consignment fee of the final sale price(Hamer). This will eat into profits with ease. So turn to selling it yourself. Here you can establish your own retail, but you must find buyers and bicker over the final sale price. This can be stressful and lengthy, but profitable. Uncle Sam is the only one who can take away profits now, but he won’t take 10% and

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