- Aug 20, 2022
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Cars as an Investment: Turning Your Passion for Cars into Profit
Introduction
Investing in cars can be a lucrative venture for those who understand the market. While many see cars as just a means of transportation, others see them as appreciating assets that can yield significant returns over time. If you're passionate about cars and want to explore how to turn that passion into profit, this guide is for you.
Are Cars a Good Investment?
Short answer: Yes — but only if you're well-informed.
Pros
Cons
Rule of Thumb
A car becomes an investment when its value appreciates over time.
Types of Cars That Appreciate in Value
Not all cars make for great investments. Here are the types that tend to increase in value:
Historic Success Stories in Car Investment
Some cars have skyrocketed in value over time:
Cars That Don't Make Good Investments
Some cars just won’t increase in value:
Future Classics to Watch (2025+)
These vehicles are predicted to become future classics:
Where to Buy, Store & Insure Investment Cars
Buying:
Storing:
Insurance:
Car Auctions vs Private Sales vs Dealers
Car Auctions:
Private Sales:
Dealers:
How to Spot an Investment-Worthy Car
Look for these key traits:
Car Collecting vs Flipping
Final Thoughts: The Intersection of Passion and Profit
Cars can be more than just vehicles — they can be appreciating assets that are enjoyable to own and can bring financial returns. Whether you're collecting cars for personal pleasure or as a savvy investment, making smart decisions can lead to impressive profits. "Buy what you love, but do it smartly — and it just might love you back with a 300% ROI."
Introduction
Investing in cars can be a lucrative venture for those who understand the market. While many see cars as just a means of transportation, others see them as appreciating assets that can yield significant returns over time. If you're passionate about cars and want to explore how to turn that passion into profit, this guide is for you.
Are Cars a Good Investment?
Short answer: Yes — but only if you're well-informed.
Pros
- Tangible and aesthetically appealing assets
- Many cars increase in value over time
- Enjoyable to own and drive
- Strong market demand for classic and limited-edition models
Cons
- Maintenance, storage, and insurance costs
- Market trends can be volatile
- Risk of depreciation with poor choices
Rule of Thumb
A car becomes an investment when its value appreciates over time.
Types of Cars That Appreciate in Value
Not all cars make for great investments. Here are the types that tend to increase in value:
- Classic Cars: Iconic models from the '60s to '80s (Ferraris, Porsches, Jaguars), and pre-1970 American muscle cars.
- Limited Editions: Cars like the Ferrari 250 GTO and McLaren F1, where scarcity drives up value.
- Supercars & Hypercars: First-generation models (Ferrari F40, Porsche Carrera GT, McLaren P1) see high returns.
- Rare Trims/Specs: Models with rare color combinations, manual transmissions, or track-focused versions (like GT3 RS).
- Future Classics: Cars that were initially undervalued but gained significant recognition over time, such as the Toyota Supra Mk4 or Honda NSX.
Historic Success Stories in Car Investment
Some cars have skyrocketed in value over time:
- Ferrari 250 GTO (1962–64): Originally priced around $18,000, now worth $50M–$70M.
- Porsche Carrera GT (2004–2006): MSRP of $440,000, now valued at $1.5M+.
- Toyota Supra Mk4 (1993–2002): Originally $20k, now $150k+ for well-maintained models.
- Honda S2000 CR: From $36k MSRP to $90k+ in 2024.
Cars That Don't Make Good Investments
Some cars just won’t increase in value:
- Mass-produced luxury cars: These tend to lose value quickly.
- Common sports trims: Cars like the Mustang GT or base Corvettes are too common to be valuable.
- Heavily modified vehicles: Originality is essential in the collector’s market.
- High-mileage exotics: These are often seen as money pits.
- Fads: Cars associated with temporary trends, like "Fast & Furious" models, usually fade in value.
Future Classics to Watch (2025+)
These vehicles are predicted to become future classics:
- Toyota GR Corolla Morizo Edition: Lightweight and limited production.
- Lexus LFA: A highly collectible model with only 500 units.
- BMW M2 CS: Last of the small, rear-wheel-drive M cars before the shift to electric.
- Porsche Cayman GT4 RS: A pure, high-performance Porsche.
- Honda Civic Type R (FL5): A modern car with future classic potential.
Where to Buy, Store & Insure Investment Cars
Buying:
- Classic car auctions like RM Sotheby’s or Bring a Trailer
- Specialty dealers and collector networks
- Private sellers with verified documentation
Storing:
- Invest in climate-controlled garages or professional storage services to preserve your car’s condition.
Insurance:
- Opt for agreed-value classic car insurance to ensure full protection in case of damage.
Car Auctions vs Private Sales vs Dealers
Car Auctions:
- Transparent bidding process, but buyer’s premiums apply.
Private Sales:
- Often better deals, but riskier without inspection.
Dealers:
- Safer transactions, but higher markup.
How to Spot an Investment-Worthy Car
Look for these key traits:
- Low mileage
- Rare trims or specs
- Original or professionally restored condition
- Documented service history
- Clean title with no accidents
- Limited production numbers
Car Collecting vs Flipping
- Car Collecting: Long-term holding, maintaining condition, and buying for passion.
- Flipping: Quick purchases of undervalued cars with a goal of selling for profit. Risky if market trends shift.
Final Thoughts: The Intersection of Passion and Profit
Cars can be more than just vehicles — they can be appreciating assets that are enjoyable to own and can bring financial returns. Whether you're collecting cars for personal pleasure or as a savvy investment, making smart decisions can lead to impressive profits. "Buy what you love, but do it smartly — and it just might love you back with a 300% ROI."
