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When we think of investment portfolios, we often think of stocks, mutual funds, and certificates of deposit (CDs). But have you ever thought about the world of alternative investments? One of those alternatives that is gaining traction is collectibles, most notably classic cars. In fact, GOBankingRates recently sat down with classic car collectors to find out which classic cars offer the most promising long-term investment potential.
1966 Porsche 911S
“The condition of the car, its availability and the market all impact the potential ROI when it comes to vintage or classic cars,” said Tomer Ruderman, founder and owner of Car Keys Ottawa.
Porsche produced only 1,709 911 short-wheelbase coupes for the 1966 model year, which made the car hard to find when it was first sold to car enthusiasts.
Proper car care can help maintain your vehicle’s resale value. Keeping mileage low and avoiding accidents can also prevent wear and tear on the vehicle and engine. One of these limited edition beauties recently sold for more than $200,000.
1976 Corvette (C3)
“Corvettes are highly collectible and a great investment,” says Brenda Christensen, principal at Stellar Public Relations, Inc. Christensen comes from a long line of Corvette collectors. Her brother owns a 1967 Corvette of his own, and her friend and former Corvette/Indy Formula 1 driver Johnny O’Connell would pick her up in a 1956 Corvette.
Corvettes are an excellent investment because they are easy to maintain and repair, and parts and service are widely available across the country.
“The entry level is cheap, as I did with the less popular models (1976/C3s) when I bought mine in excellent condition for $10,000 cash.”
Your $10,000 investment is now worth $30,000.
1968 BMW2002
“Given their rarity, most limited-edition cars from well-known brands are a good investment,” Ruderman said.
This small European model is a favorite among classic car collectors. Since only 2,850 examples were made during production, this car is rare to find. The ’68 BMW 2002 retails for about $10,000 to $30,000 if you can find one for sale.
With any collectible, it is important to research the market before selling. Pay attention to what vehicles have been sold recently and check the sales volume and the condition of the car. Car collectors look for whether the cars have their original engines and other parts. Whether the body of the vehicle has been damaged and whether the dashboard has been altered in any way. Other things to look for include rust on the vehicle, the condition of the paint and whether the car itself is clean.
“Private sales, for example on Facebook Marketplace or eBay, are where you can make the most money, but it also has its downsides,” says Ruderman.
They do all the legwork when it comes to listing the vehicle, arranging test drives with prospective buyers, and dodging potential scammers. Alternatives to finding buyers include enlisting the help of local car auctions or selling to a dealer, but you’ll likely earn less.
Classic cars are a great alternative investment to round out your portfolio. And it doesn’t hurt that they’re fun, too!
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