I happen to have cash in the bank at the moment as the result of a property sale. The ‘interest’ rate offered by my bank on my balance is 0.2%. So should I leave £100,000 in the bank for a year it will gain £200.
Except, with inflation running at 5%, I would actually loose £5,000 in real value, even before the government comes for their chunk of the £200.
No wonder there’s a lot of money piling into classic cars. But there are plenty of pitfalls too, even if you suspect the current bull market is a repeat of the 1988-1991 bubble.
With that in mind here are some very good rules of investing in old cars (courtesy of a well known Belgian car dealer):
- Don’t be cheap. Do not buy because the car seems inexpensive. Pay for quality at the outset, and it will later turn out to be a bargain.
- Don’t gamble on ‘future classics’. The safest investment is one made in a car of which the rising value has already been confirmed by the market.
- Buy what you really like; lead with your heart but invest in your pleasure as well.
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