A classic car of choice may well be one of the most fluid, predictable and dynamic investments out there. Perhaps immune to the pitfalls of property, the stock market and savings accounts.
Investing has long been encouraged, and thanks to the digital era popping up, investing is never more than a mouse click away. The internet is a minefield, from elaborate, famous and professional long lasting pyramid and ponzi schemes, through to banks using every sales trick in the book; all disguised as money making opportunities. Sometimes, there is no real investment. Better of out of it perhaps.
Is becoming a buy-to-let landlord in England still profitable? Well with recent changes to buy-to-let tax reliefs, stamp duty and fees that once upon a time were born by the tenants now handed over to the landlords, along with expensive licencing, the industry is not one that looks so favourable any more. The fluidity of sales seems to have slowed too. Additionally, if the Labour party enters the fold and implements their proposed thoughts, landlords could be sitting ducks with a discount on right to buy for long term tenants in the private sector imposed.
Location location location. The mantra for property. Until somebody builds in front of it. And devalues it. You cannot move a built-on-foundations-traditional-home. But a car you can. You can change its location if it is worth more in that particular location.
And thus to cars. Not only do you have control over the location, you can insure it for the amount it’s worth and it is unlikely that any bad news from the manufacturer will devalue it overnight, such is the case with the stock market, where breaking news can do just that – break your investment. Unlike the stock and property market, it is unthinkable that a huge percentage of the entity in question, in this case the model of the car, will enter the market at the same time. This avoids a sudden plummet in value. You don’t need to withdraw your money from any institution, you physically sell it on your terms. You can even rent it out for weddings, photo shoots and through car sharing platforms.
And you can drive and enjoy it. Possibly the most valid point.
There is one fly in the ointment however. Government legislation for emissions and so forth.
But the solutions are simple. Put up with the conditions because you love your car, or place your car for sale where its value will be higher and there is a market. Either way, it will remain a form of investment, whether it reassures your pocket, or makes you happy when you see it everyday.
Maybe it is time to click your mouse here at Trade Classics.