Investments in sports cars, as well as in retro ones, are more dangerous than investments in various shares on the stock exchange. This is the official statement from Bloomberg. But there are also exceptions: for instance, Ferrari and Porsche. These two brands overtook top hedge funds, bringing the owners of their shares three-digit income over the last 10 years.
Before investing money in a sports car, it is necessary to take into account all the possible risks associated with this venue. One might compare this with the investment in a collectible retro auto. However, this is also a risky step to take. And the purchase of an investment vehicle is one of the essential decisions to make. Therefore, it is necessary to equip oneself with at least a tool like FAXVIN to make sure that you know the vehicle’s history. It would be even better to involve a professional specializing in the car brand you consider acquiring.
What Makes a Car Collectible?
The cars that have had unusual technical innovations or influenced the development of the automotive industry can become collectibles, especially if they are rare. For example, the Mercedes-Benz 300SL is the first post-war sports car produced in Germany. Its main feature is unusually opening doors that cover the main innovation of the body, a reinforced aluminum frame.
However, these are not only old cars that you might invest in. Contemporary models of sports vehicles might become collectible in several years. But to determine the potential of a particular model, it is necessary to be well-versed in the field and be able to predict which of the vehicles will be in demand in some time.
Automotive Investment Risks
The risks are associated not only with the costs of transport taxes and insurance but also with the correct storage and operation of the car. The vehicle may require restoration or special conditions of detention. Collectible cars may be even over 50 or even 90 years old. All this costs more than a conventional safe deposit box for storing diamonds or gold.
But even insurance, timely repairs, and careful storage do not guarantee profit. To successfully invest, you need to take into consideration the below factors:
Attention to detail: Imperfect maintenance or frayed condition of the car can significantly reduce its cost.
Rarity: Look for cars that use a particular technology for the first or last time. This makes the car unique and more appreciated in the market.The cost of maintaining the car: If a vehicle requires a lot of storage costs, then this can nullify future profitability. For example, Ferrari fuel tanks need to be changed every 10 years; it costs about $12 thousand.Liquidity: Make sure you can easily sell your car. If the model is popular among motorists, it will be easier to do this.Low price: Try to guess the moment when the car will be cheap. You can take the one generation rule as a basis. When teens grow up and can afford the car they dreamed of as a child, its price skyrockets.
Have you already selected a car to invest in? Think twice before making such a costly purchase.
Subscribe to Chat Sports on YouTube for more sports coverage!
Back to the Auto Racing Newsfeed