Does car collecting pay off financially in the US and UK?

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Many older vehicles between three and five years are not likely to still be under their original warranty, so many dealers include mechanical breakdown insurance to increase their chance of selling that vehicle. Theses policies are generally very short and have major restrictions, so they may not always provide the level of cover that you really expect. Choose a used car from a manufacturer’s approved used scheme and the quality of the vehicle and any used car warranty that it comes with is likely to be a notch up on other deals. This is because that dealers company has a vested interest in selling only the best used cars and a bad warranty could damage their reputation.

Car collecting has long been a niche hobby of some the wealthiest and most eccentric entrepreneurs in the US and UK. The goals of the car collectors, collecting habits, and values of their collections, however, vary greatly. Some prefer to maintain their non-driven, neatly maintained collections in garages, while others like to show of their prizes at shows and events.

The real trick with collecting cars is to take this passionate hobby and turn it into a money-making financial venture. The reality is many collectors are not driven by investment with their car collections. For those that are, wise exotic car investing is a fine art. It involves an understanding of proper maintenance for value. It also relies upon an expert knowledge of restoration processes that enhance value. Perhaps most importantly, good car investing involves knowing when, where, and how to make good purchase acquisitions and high value sales.

Fact:: During July 2008 the Kia cee'd is backed by a 7 year manufacturer's warranty - the longest you'll find on any car in Europe claim Kia. We would be happy to extend that car warranty for you when it comes to an end though.

One of the challenges in tracking information on high end car collecting is that much of the deals that go on are top secret. Large private collectors make deals behind the scenes. This is with the exception of large-scale auctions and big events that bring out the best collectors and the best cards. Recently, the GoodWood Revival, one such huge classic car event, was held in the UK.

In July 2006, Sports Car Market magazine shared a report based on its investigation into some of the most expensive collector cars ever sold. The report highlighted that many of the top end prices were during the 1980s. However, growth in worldwide interest in has peaked since 2000. The magazine said 37 of the top 50 highest prices (at least those the public is aware of) for cars have come since 2000, with 25 of those in the two years leading up to the article.

Fact:: Currently (2008) you are able to buy a Mercedes-Benz through three finance options; Mercedes-Benz Hire Purchase, Mercedes-Benz Operating Lease Purchase or through the Mercedes-Benz Agility finance package.

Some of the most expensive cars sold have come from early designed Ettore Bugatti. He designed six Bugatti Royales from 1929 to 1931 that are widely considered premiere collector cars. One of the Royales sold at Christie's Auction in London for $8.7 million in 1987. More recently, formula F1 driver Bernie Ecclestone sold a 1937 Mercedes-Benz 540K Special Roadster at a classic car auction at London's Battersea Park, for a whopping 3.9 million British Pounds. Modern models like Le Mans, Maseratis, Aston Martins, and Ferraris are big ticket items. More traditional collectors like older classics like Bugattis, Bentleys, and Duesenbergs. Just recently ( July 2008 ) a mint condition Jaguar D-Type which was first sold new for a princely sum of around £2,500 to £3,000 was purchased by an unnamed British buyer for the equivalent of £2.5 million at the Goodwood Festival of Speed, setting what Bonhams auction house says is a new world record auction price for any Jaguar. Bonhams calls the car "one of the most original D-Types in existence! Originally The 1955 3.4-litre Jaguar D-Type Sports-Racing Two-Seater, was raced in the USA by Lou Brero Sr in 1956 - 57 and has been preserved in the private collection of owned James Moores the son of the late founder of LittleWoods.

So what drives these eccentric collectors to pay such huge sums for unique cars? Several factors work together to create demand, but a few keys to the top draws include: Rarity and designer uniqueness, chain of ownership (and accomplishments), the quality of restoration or preservation, and quite naturally the cars racing history. Pedigree is everything with a true piece of history. Additionally, the rarest of all models and the most cared for models will always be advertised for great periods of time prior to sale building up vast amounts of interest in the car going on sale, naturally this will tend to drive up prices at top auctions. Many of these auctions are invitation only and huge deposits are required before the bidding even starts.

Some Examples Of Great Historical Vehicles:
1968 Jaguar E Type, 1959 MGA Roadster, Aston Martin DB6, 1979 Bentley T2, 1962 Corvette, 1957 Corvette which was the first year that fuel injection and a four speed manual transmission are offered for this marque, 1963 Austin Healey 3000 mk2 and the 1967 Austin Healey mk 3, 1973 porsche 911 Turbo, 1960 Porsche 356 b roadster, Mercedes Benz 280 SL and the Reliant Scimitar of which Princess Ann owned more than one and parts are still manufactured by a company called Graham Walker ltd who are based in Chester. Graham Walker ltd re-manufacturer items that have been discontinued solely for the Reliant Scimitar, they purchased the license to do so years ago. They also deliver next day to your doorstep!

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The opinions expressed are those of the author and are not necessarily held by the Click4Group unless specifically stated. The material is for general information only. Always obtain independent, professional advice for your own particular situation.