Timeless Auto Sales Projects Classic Car Sales Record In 2014

Unless you live in a cave, you will recognize a Corvette, or a Porsche 356 or a Ferrari. And even if you do live in a cave, you may not know what a 300SL is, but you’ll know it’s something special when it is parked at the opening to your cave. To sum it up – rarity, provenance, and recognition seem to be what investors crave.

So how does that explain the phenomenal rise in values of cars like BMW Isettas, Messerschmidts and Fiat Jollys? It doesn’t. These cars were simply “discovered” overnight, so it seems. They have enjoyed this rise in value simply as a function of their popularity. I doubt they’ll come down significantly in value any time soon, but I also doubt that they’ll continue to appreciate very much in value.

Now you have a few indicators to look for in your search for the next rising star. Rarity, provenance, recognition and popularity. The first three are fairly easy to quantify. The last, not so easy. But even using these criteria is no guarantee for success. There’s an old saying in the collector car hobby: “Rare means that nobody wanted it then, and nobody wants it now.” This is largely true, even today.

So if you intend to mortgage your house to start investing in collector cars, you had better learn the strategies that investors use. I’ve built collections for investors in the past, and I’ll continue to do so in the future. In my opinion, the two most important things are to “diversify” and to know the true cost of your investment on an annual basis.

As any investor will tell you, you must diversify. If you buy only one car as an investment, and you are wrong, you’ve lost everything. Knowing the true cost of ownership is not as simple as it seems.

Investing is different from collecting. If you, as a collector, bought your 1969 Firebird 400 Convertible for $20,000 five years ago, and just sold it for $30,000, you made $10,000. If you as an investor did the same thing you probably lost money. You must factor in the cost of storage, insurance, maintenance and repairs, marketing (at sales time), and transportation (if you plan to bring it to a major auction). Don’t forget to factor in the cost of the money itself. Tying up $20,000 for five years has a real cost.

Opportunities still exist. It’s up to you to ferret them out. Just remember to take off your “collector hat” and put on your “investor hat.”


www.timelessautosales.com