When you think of an investment portfolio, you probably think of stocks, mutual funds, and certificates of deposit (CDs). But have you ever considered the world of alternative investments? One alternative investment that’s gaining traction is collectibles, with classic cars leading the way. In fact, GOBankingRates recently spoke with classic car collectors to uncover which classic cars have the most long-term investment potential.
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1966 Porsche 911 S
“When it comes to vintage and classic cars, the condition of the car, availability and the market all affect the potential ROI,” says Tomer Ruderman, founder and owner of Carkey’s Ottawa.
Porsche only produced 1,709 of the short-wheelbase 911 Coupe for the 1966 model year, making the car hard to come by when it was first sold to car enthusiasts.
Proper car maintenance helps maintain the resale value of your car. Keeping mileage low and avoiding accidents can also prevent wear and tear on your car and engine. One of these limited edition beauties recently sold for over $200,000.
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1976 Corvette (C3)
“Corvettes are highly collectible and a great investment,” says Brenda Christensen, president of Stella Public Relations. Christensen comes from a long line of Corvette collectors: Her brother also owns a ’67, and her friend, former Corvette and Indy Formula One driver Johnny O’Connell, came to her in a ’56.
The Corvette is a great investment because it’s easy to maintain and repair, with parts and service available nationwide.
“You can easily buy at the entry level, like I did when I bought a less popular model year (1976/C3) in very good condition for $10,000 cash.”
Her $10,000 investment is now worth $30,000.
1968 BMW 2002
“Given their rarity, most limited edition cars from name brands are good investments,” Ruderman said.
This little European model is popular among classic car collectors, and with only 2,850 made during its production run, it’s extremely hard to find. 1968 BMW 2002s sell for around $10,000-$30,000 when they are available.
As with any collectible, it’s essential to do market research before selling. Look at cars that have sold recently and check how much they sold for and what condition the car is in. Car collectors check if the car has its original engine and other parts. Is there any damage to the body or any modifications to the dashboard? Other things to look out for are the car’s rust, the condition of the paint, and if the car itself is clean.
“Selling privately through places like Facebook Marketplace or eBay is the most profitable, but it also has its drawbacks,” Ruderman said.
You’ll have to do all the work yourself: list the car, arrange test drives with potential buyers, and avoid scammers. Alternatives for finding a buyer include working with a local car auction or selling it to a dealer, but you’ll likely make less money.
Classic cars are a great alternative investment to help bolster your portfolio, and the fact that they’re fun to own is a plus.
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This article originally appeared on GOBankingRates.com: I’m a Car Collector: 3 Best Cars for Long-Term Investments
