Most of us have an idea of what our ultimate car would be.
Most of us can only ever dream to own our ultimate car.
However, if you do have the desire – the passion, the finance, and the knowledge – making an investment in a classic car can prove to be an excellent investment indeed.
The fact is that the classic car market has performed better than a large variety of collectibles in terms of value over the past decade or more.
Classic cars have outperformed stamps, coins, and also the broad stocks index.
But, as with everything, it’s not all smelling of roses.
Owning a classic car is not all about advantages; there are, of course, disadvantages, too.
What are they? What are the advantages and the disadvantages to investing in and owning a classic car?
Let’s find out now.
Advantages of Owning a Classic Car
1 Classic cars can ooze with character and style in terms of aesthetics and driving experience.
Cars that were manufactured prior to the 1970s were not created en masse such as what we have today.
Cars that were manufactured pre-1970s were created with flair and style in mind. Quite unlike the modernized, regulation-governed counterpart that we have today.
With respect to many of the classics, the manufacturing process called for attention to detail.
In turn, that made cars recognizable from one another: The bolder design of something like the Maserati Bora in comparison to the elegance of the Jaguar XJ6 is just one example.
Today, cars are far more uniform. Each manufacturer comes up with their own format of a standardized model.
It’s not merely about the style, though.
In years gone by, the classic car driving experience was completely different to what we have now.
There was no power steering, no ABS braking.
As such, every driver had to be far more active – both physically and mentally – in controlling the vehicle.
There’s definitely a requirement for more skill and more driving experience if you want to get behind the wheel of a classic car – especially if it’s a sports car.
Of course, this makes it a lot more fun.
2 Can be beneficial in terms of financials.
If you know what you’re doing and you can snap up something quite special, you could, potentially so, reap decent, or very decent, financial reward.
Classic motors have a tendency to depreciate, in terms of their value, far less than the current-day motor.
That is, of course, because they are desirable and they come with a collectability status.
If you choose wisely – after doing your research – chances are very good that, at worst, you’d get back what your original investment was if you chose to sell at a later date.
As an example of this, and it is only one example of many, the DeLorean DMC-12 enjoyed a resurgence in terms of classic status.
During the summer of 2015, it gained 32.1 percent in value.
Then, in the winter of the same year, it increased in value by a further 8.3 percent.
There is an additional financial incentive to owning a classic motor, at least in the United Kingdom.
And what is that financial perk?
There’s zero vehicle tax to pay if the car that you own, or want to own, is classed as being a “historic vehicle.”
A “historic vehicle” in this sense is one that was made prior to January 1, 1979.
How much of a saving is that?
As of April, 2019, you’re looking at a saving of £145. That price rises on an annual basis.
3 No complicated engine (etc.) system.
Modern classic cars, while many are extremely powerful and fast, they come with far more complexity than at any time previously.
There’s complicated assist systems that have complex trouble-shooting.
Classic cars from bygone times are far more straightforward when it comes to maintenance and renovation.
It’s all about the turning of wrenches as opposed to the parsing of “trouble codes.”
The theory goes that it ought to be a lot cheaper to work on classic car models than on contemporary autos.
Nevertheless, that doesn’t pan out because there’s the scarcity of parts issue to consider.
Disadvantages of Classic Car Ownership
1 Storage and maintenance costs.
After the investment has been made in a classic car, you can’t simply let it sit pretty on your driveway.
The older cars are composed of more steel. And with more steel comes more rust.
As such, if you want to avoid the rust, and if you want to keep your vehicle in tip-top condition, you might have to rent a garage space for storage purposes.
In fact, you might need to heat your garage space or you may require some type of climate control. Either way, it’s a costly business.
Along with age comes the need for more maintenance.
Certainly, for many classic car owners, the maintenance work is a joy. But for others, particularly so the non-motor savvy, it’s a definite inconvenience.
The sourcing of parts and finding someone to work on your classic car is, likewise, going to be a very costly proposition.
2 You can’t drive your classic car to work every day.
You invest your hard-earned, you invest your time, you invest your passion, and yet, you can’t simply take your classic out for a spin around town or to your place of work on a willy-nilly basis.
Besides having to store your car in the right place with the right ambient conditions, you have to consider the road and weather conditions, too.
You take your vintage motor out for a spin on a crisp winter’s morning and chances are your premium paintwork will be destroyed because of the salt that’s been scattered over the roadways.
Even taking the auto out on a wet day could lead to some sizable rust-related problems cropping up.
3 Then, there’s the environment to think about.
Classic cars make for a highly significant aspect of our heritage. Some are considered as having antique value.
Well, that’s because they are antiques. The safety features are antiquated and their combustion engines are antiquated.
It’s hardly an ideal scenario for the more environmentally-friendly conscious among us.
Yes, the production of new cars comes with a hefty carbon footprint.
But exhaust fumes are filled with more pollutants than just carbon dioxide.