Avoid These Risky Investment Ideas (8 of 10)

Classic Cars: What Traps People

Vintage cars have a good and enthusiastic fan base if you look for it. You’ve got collectors’ networks, auctions, and, more commonly, car shows that are open to the public. And while the blast from the past is nice, that’s really where the positives end with these collectibles.

Unless your vintage vehicle was made by Porsche or Ferrari between the late 1940s to mid 1960’s, chances are that you’ll not be getting much out of it in terms of investing. Some models today can be bought for low five figure amounts at most.

And that’s even before we get into the actual maintenance of the car. Even if you don’t plan to drive the car, you need to consider restoration, upkeep, insurance, and storage costs. And if you do plan to drive it, you’ll need to involve a mechanic that has the skills to operate the car, should anything happen to it. On top of that, you’ll also need to get the proper parts, which are rare, and therefore, expensive to replace.

The Dangers Of Classic Cars

Vintage cars are nice nostalgia trip and make for a nice money sink if you can afford to buy them, and you genuinely love cars. But if you’re not swimming in cash, it’s best to not let your emotions take the wheel.

The condition of the car, the workmanship, rarity and the features of it are all important factors in determining price and even willingness to purchase the car.

On top of that, while the fan base is enthusiastic, you’re still dealing with a relatively small market. While they have auctions, only a small percentage of them actually sell and the price range is wildly different. They’re not as good as a stable investment.