The investment car market has peaks and valleys as does most long
term conservative investments. The general market has been in
a mostly flat valley since the last peak in 1990, with a slight
trend upward since the initial fall. It is showing strong growth
that can exceed many other relatively safe and conservative investments.
The challenge of the astute investor is to choose a vehicle he
can enjoy as well as a vehicle that has good investment potential.
Currently, most of the American muscle cars and classics of the
50's and 60's still are not showing signs of any immediate increases
in value. However, they are remaining steady in pricing after
the last pricing decline although most of the 4-door American
classics are actually declining in value The notable exceptions
are convertibles. Most cars are produced after 1970 are nit considered
investment quality at this time. Original trucks are becoming
popular, but the sale prices are not stable or consistent enough
for enough for most investors, which regulate them to the hobbyist.
Some special 70's and 80's cars will become investment cars in
the future, but it is difficult to pick the right ones.
The type cars that are beginning to increase in value due to an
increase in foreign demand are the 50's and 60's and early 70's
English sports cars. These cars are quick and fun to drive. Most
are convertibles. The designs are straight forward, easy to repair
and parts are readily available. The most popular are the MGTC's,
TD's, TF's, MGA's and MGB's (prior to 1975), Triumphs, Sunbeams,
Jaguars and Morgans.
Other suggested cars are the 1930's US cars that remain in original
condition. The true investment grade cars such as the Rolls Royce,
Auburns, Dusenburgs, 12-cylinder Lincolns, Cadillacs, etc. of
the 1920's and 30's are always good solid investments and are
favored by the serious investors.
Another area of investment is the purchase of a car you drive
daily and not lose money when you sell it. The old saying "A
dollar saved is a dollar made" is true today. There are many
choices, but the general rule is to buy a well engineered car
that does not change design frequently and is 2 or more years
old, with low miles for its age.
Examples of these are 10 year old Porsches, Mercedes and Jaguars
for under $15,000. These cars were the epitome of safety designs
and usually have 10 year or longer production runs with minor
changes. You can have $60,000 plus of engineering at a bargain
price. Due to this, most of these cars do not continue to depreciate
rapidly and some actually begin to increase in value while expected
to last much longer than lower priced, newer cars.
Remember, cars can be a good investment and a safe hedge against
inflation, but do your homework first!
Inventory in stock at Tifton for Sale (updated every business day)
Other published articles written by Bob Kennon
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