Though many investors in classic cars got stung by the recession of the early ’90s, at least some models are beginning to sell well again.
Investing in automobiles can be risky because no one can predict what the market will do. The only real certainty with automobiles, like fine original art pieces, is that there is a finite number of any particular model available, which, of course, enters supply and demand into the equation and drives prices upward.
At the Kruses auction held earlier this year in Oklahoma City, investors bid on many rare automobiles, including a 1974 Jaguar E-Type Roadster for $33,000. American cars can command equally large price tags. The Blackhawk auction, featured a 1948 Chrysler Town & Country convertible for $71,000.
In this realm, it’s not so much knowing which car is good, because all of these cars are restored close or completely back to original condition. The challenge is to know the market well enough to be able to get a car for a good price and one that will gain value the longer you own it. Then when it’s sold, you can make a respectable profit, buy another car, and start the process all over again.
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