Many people are drawn to the thrill of owning a classic car. But are the costs worth it? Here are some of the financial pros and cons to buying a classic car.
Some classic cars will appreciate in value
Buying a classic car can be an investment. The likes of the Aston Martin DB5 have risen in value tenfold in the last 25 years. Not all classic cars will appreciate – some may even lose their value. If you’re looking on purely making an investment, it’s worth doing your research. You may even be able to restore a battered-up classic car for profit.
Not all classic cars are expensive to buy
You don’t have to be rich to buy a classic car. Some such as Ford Cortina are available for only a few grand. These may not be great investments as they may be less likely to appreciate. However, if you simply want to own a classic car and have no intention of selling it, you could still find this to be a bargain.
Expect higher fuel consumption
Old cars aren’t nearly as fuel efficient as today’s vehicles, so expect to be visiting the pump more often. Petrol costs can start to add up if you’re using a classic car as your main vehicle for getting around. Of course, if it only comes out for special occasions, this may not be an issue.
You may not have to pay road tax
Whilst fuel-guzzling vehicles generally cost more in road tax, vehicles over 40 years are tax exempt. This could be a small saving each year to counterweigh the fuel consumption.
Maintenance could be more costly
It’s worth having a reliable auto repair service on call as your vehicle is likely to come into a lot of faults. Classic cars may contain parts which have aged badly. Some of these parts may be rare and costly to replace. Even if the car hasn’t spent much time on the road, rubber seals and leather seats may have disintegrated and may need replacing.
That said, you may be able to do DIY repairs
Whilst getting under the bonnet of today’s cars requires a fair bit of mechanical know-how, fixing u a classic car is likely to be much easier and you may be able to attempt a few more DIY repairs. For one, there are few electronics and no computers to deal with.
Insurance could be high
Classic cars – especially those that have gone over their mileage – are generally more expensive to insure. This is because insurers associate a greater risk of things going wrong, which could contribute to accidents. Classic cars may also be more prone to theft (although storing your car in a garage may be able to counteract this).
There are creative ways to make and save money
A rarely considered bonus of owning a classic car is that you can make and save money in certain situations. Classic car owners may be allowed free entry to classic car events. Meanwhile, there are business opportunities when owning a classic car. You may be able to start a wedding chauffeur business, get in used in advertising and even get your car featured in period films and TV shows.