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Investing in Classic Car

Posted by Luxify

31 March, 2020

Investing in Classic Car

Owning an automobile has become a necessity nowadays, but its maintenance and repair costs have made people think twice if owning one is a good investment.

Recently, more investors have jumped on the classic car bandwagon. In the last decade, classic cars have surpassed other luxury assets such as art and wine to become the best-performing collectible investment, with values nearing 500 percent, as reported by the Knight Franklin Luxury Investment Index. How can you make certain if a classic car is what you really want and need?

New model cars depreciate as soon as they leave the showroom floor and its value will continue to fall in the next 10 years. Classic cars tend to hold their value, and may even see an increase in value if well looked after.

Another reason to prefer classic cars over the new ones is its styling. In a sea of mass-produced modern automobiles, a classic car is a sure standout. Classic cars have individual identities and come in with interesting shapes and colors. With its unique and distinctive look, classic cars have piqued the interests of collectors and investors. Aesthetics is generally one of the many reasons why people are willing to shell out large amounts of money to buy an item. And that is no different for classic cars.

Modern cars are for a safer and more comfortable driving experience purpose; however, some car enthusiasts look for that authentic hands-on experience that classic cars still offer. Full attention in operating a classic car provides a better experience for the driver. While modern cars insulate a driver from the feel of the road, classic cars will immerse you in the noise, some, l and vibrations of driving, which can contribute to a richer driving experience and a chance to appreciate your car.

For classic cars, a lack of electronic components means fewer parts to break down. And any issues that would arise can often be fixed by a mechanic or a knowledgeable friend.

In United Kingdom, vehicles older than 40 years are now covered in the rolling exemption from the Vehicle Excise Duty (VED) or ‘road tax’ introduced by the government in 2014, so there is no better time to own a classic car in the UK.

For some, investing in classic cars has already become a passion. Aside from its potential profits, some buyers are content to burn a lot of cash to fuel their passion. That’s one thing to keep in mind when investing in classic cars: buy what you love. At least you own something you truly want, in case you never make anything out of your investment. And if you could earn more than what you paid for, that’s just a bonus.

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