Is it possible for interested investors with smaller portfolios to get involved? And is investing in alternatives a good choice?
One cc investor replies:
Yes classic cars CAN be a good investment. Please note the emphasis on the non-convincing part of my opening words.
Classic cars can be the most profitable type of investment you can ever make.
The buying and investing in cars is also one of the most complicated markets I have ever seen. I have had 40 years of buying, selling and investing in cars and I have never made more money in my life not to mention increasing my liquid assets massively from time to time.
I have lost money four times in those years. and out of around 500 cars. Once on a 68 Mustang fastback that I blew the motor in while racing it. (Still ONLY lost $50 bucks!) A 67 Mustang convertible that was wrecked while it was parked and it was underinsured. This was before the days where insurance was not mandatory nd the guy had none.
The other two cars were stolen. 68 Mustang convertible and a European Volkswagen,
However, I have seen guys lose there shirts inexplicably on cars they should have made fortunes on. They just did everything wrong and didn’t take my advice.
The trick like everything else you invest in is to think with your head!!
(No matter how much you love the car. )
Never buy a car that isn’t a deal.
Know EVERYTHING you can about the car you want, its values over the past ten years and have a sober look at how quick you could sell it.
Every car needs a ledger and a file and fresh appraisals to keep track of values.
NEVER„(maybe I should repeat that) NEVER put more money into a car than it is worth. Unless you happen to be one of those wonderful already rich hobbyists who have money to burn, but their cars when they are done with them and get a deal.
To finish this, I have never seen such a potential market for losing money and never seen anything like this market for making it.
Keep your heart out of it if you are serious about investments.
Try never to be the one who restores the car
BTW I am actually in love with my cars heart and soul.
But I knew what I was doing when I bought each one of them.
I always know exactly where I stand in the ledgers and I have black ink in all files so far.
However, before I fell in love I “dated them” for a while to make certain they were never going to break my heart.
Mustangs did that to me very early on.
Oh and one more thing, none of my fleet is for sale right now.
They are part of my retirement package!
Well, I hope that didn’t sound too cold.