Classic cars, like classic rock, don’t seem as if they will ever lose their appeal. It’s no wonder that so many people avidly collect these vehicles. If you are considering joining their ranks, here’s what you need to know.
The first practical consideration you will have to make when starting a classic car collection is where you will store your vehicles. Generally, most residential properties have parking space for a few cars at most. It is also frowned upon, and if not illegal then a logistical nightmare, to leave your classic car collection sprawled across public parking spaces in your local area.
As well as finding the space physically, you will also need to consider the safety and security of the vehicles. You want them to remain free of any damage, whether intentional or accidental. There are a number of businesses who offer car storage facilities where you can store your vehicles until you’re in the mood to drive them.
Decide Your Theme
The types of car that you end up collecting will obviously depend a great deal on the kind of money you are able to spend on the venture. Most of us will struggle to get off the ground if our goal is to collect high-end sports cars. The term ‘classic cars’ is very broad and encompasses a number of vehicles, some of which are worthless, others of which are undisputed classics in the truest sense of the word.
The theme can be whatever you want it to be, or you can take a more freeform approach and just acquire vehicles that you like the look of. However, if you are hoping to display your collection in some way, it will be more appealing to a potential audience if there is a coherent and identifiable theme to it. Similarly, if you are thinking about the long-term value of your collection, note that, if it contains vehicles that are completely unlike the others, these will inevitably be separated out during any sale.
Consider Funding Options
While a classic car collection can be expensive, the vehicles in it are often assets in and of themselves. There may be some unremarkable classic cars who only have value to those for whom they happen to be significant. For example, some collectors might add a car to their collection, not because it is a remarkable specimen, but because it was the car their family owned when they were growing up. On the other hand, you have classic Mini Coopers and Jaguars, cars which are always going to be worth something, and which may even increase in value.
What this means is that, while your classic car collection might represent a significant investment for you, many of the vehicles within it can readily be sold and turned back into cash. With that in mind, it is possible to start a classic car collection on relatively modest funds, as you can be reasonably certain of making a decent percentage back in an emergency sale.
If you have an upcoming opportunity to make some money from your collection, or perhaps you are just short of the funds to purchase a great car at an unbeatable price, a short term personal loan might be a viable answer. By taking out a secured loan, or a guarantor loan like those offered by TrustTwo, you can often secure better terms from lenders. This is because, should you be unable to pay, they will still be able recover their money. If this sounds like the best financing option for you, you can apply for guarantor loans with TrustTwo by visiting www.trusttwo.co.uk.
Define Your Goals and Limits
If you are collecting cars purely for your own pleasure, you will need to decide for yourself how much it is worth to you to add a particular vehicle to your inventory. On the other hand, some people invest in a car collection with a view to making money. Like other forms of investment, those who invest in cars in this way are often looking to predict trends in the market.
When we think of investing in a car, we usually think of it being similar to a home renovation project. But with certain classic cars, it is either difficult or undesirable to make the kind of extensive modifications and renovations that would seriously increase the value of the vehicle. In these cases, the long-term value of the vehicle will be determined by market demand. You never know when a long forgotten classic car is going to be featured in a film or TV show, suddenly becoming hot property to own.
From the very beginning of your collecting venture, you need to set yourself some clear goals, and some clear limits. Your goals should direct your decision making by keeping you focused on a long-term objective. Your limits, meanwhile, are the strict ceilings you set yourself when it comes to spending your money. Of course, building a collection will require you to spend. If you obtain cars through auction, you might need to engage in a bidding war. However you go about acquiring your cars, make sure you don’t break the bank in doing so.
Starting a classic car collection is a great way for petrolheads to indulge their passion, and it also can leave you with valuable assets to pass on.
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