When we think of investment portfolios, we often think of stocks, mutual funds and certificates of deposit (CDs). But have you considered the world of alternative investments? One such alternative gaining traction is collectibles, with classic cars leading the pack. In fact, GOBankingRates recently sat down with classic car collectors to uncover the classic cars that hold the most promise for long-term investment potential.
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1966 Porsche 911 S
“The condition of the car, its availability, and the market will all impact the potential ROI when it comes to vintage or classic cars,” said Tomer Ruderman, founder and owner of Car Keys Ottawa.
Porsche only produced 1,709 short-wheelbase 911 coupes for the model year 1966, making the car hard to find when it was originally sold to car fans.
Proper car maintenance can help your vehicle maintain its resale value. Low mileage and avoiding accidents can also prevent wear and tear on the vehicle and engine. One of these limited-edition beauties recently sold for more than $200,000.
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1976 Corvette (C3)
“Corvettes are highly collectible and a great investment,” said Brenda Christensen, principal at Stellar Public Relations, Inc. Christensen comes from a long line of corvette collectors. Her brother owns a ’67 himself, and friend/ former Corvette/Indy Formula one Driver Johnny O’Connell used to pick her up in a ’56.
Corvettes are an excellent investment as they are easy to maintain and repair, with ubiquitous parts and services offered nationwide.
“You can get in at an easy entry-level, as I did with the less popular years (1976/C3s), where I purchased mine for $10K cash in excellent condition.”
Her $10,000 investment is now worth $30,000.
1968 BMW 2002
“Given their rarity, most limited-edition cars from reputable brands will be a good investment,” Ruderman said.
This little European model is a fan favorite among classic car collectors. With only 2,850 made during production, finding this car is few and far between. The ’68 BMW 2002 retails between roughly $10,000-$30,000 when you can find one for sale.
With any collectible, it’s essential to research the market before selling. Take note of what vehicles have recently sold and check the amount sold and the car’s condition. Car collectors look to see if cars have their original engines and other parts. If the body of the vehicle has been damaged, and if the dashboard has been altered in any way. Other things to note are rust on the vehicle, the condition of the paint and whether the car itself is clean.
“Selling privately, such as through Facebook marketplace or eBay, will make you the most money, but it has its downsides,” Ruderman said.
You’ll be doing all the legwork when it comes to listing the vehicle, arranging test drives with potential buyers, and dodging would-be scammers. Alternatives to help find buyers are enlisting the help of local car auctions or selling to a dealership, but you’ll likely make less.
Classic cars are a great alternative investment to help round out your portfolio. It doesn’t hurt that they’re fun, too!
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This article originally appeared on GOBankingRates.com: I’m a Car Collector: 3 Cars That Offer the Best Long-Term Investment Potential
