From as young as our teenage years, money becomes a prominent thought in our minds. We are always taught by parents, teachers and family to ‘put that away for a rainy day’ and create a savings account to cover for things such as your summer getaway, first car or life in general, such as the things we can’t predict like boiler repairs or vehicle recovery. However, rarely do we ever become advised to invest in an item for our future-self’s benefit, but what is this benefit and what is classed as a profitable investment?
What is the difference between saving and investing?
Choosing the right option for you is completely reliant upon both your current financial position and the outcome of which you are looking to achieve in the near or far future.
- Saving is simply putting away a sum of money, most likely into a bank account, and adding to this sum regularly to increase the total amount of savings. This is commonly practical for short-term goals, such as the purchase of that summer getaway or to pay your gas man for that unforeseen boiler repair.
- Investing is putting your money into, or purchasing, items that have the ability to increase in value over time. This is most likely to become a greater profitable investment if the item is an original, one-off or has been discontinued, such as classic cars.
Why you should take the time to invest in a classic car
Classic cars have been known to be a great profitable investment for many vehicle-lovers over the years, but many people are still unsure of just how this could work.
Firstly, you should assess your financial situation and the goals in which you are looking to achieve from this money growing action. If you are looking for a fast change in your finances and a healthier looking bank account within a handful of years, an investing move may not be for you and you should stick with the savings pathway.
Investments are a fantastic move for families of newborn and young children. As the value is highly unlikely to increase too greatly after just a few years, they are typically left for around a minimum of 10-15 years before heading to auction or selling point. By investing in a classic vehicle around the birth of your child, you could potentially have their school or university finances growing over time without the heavy pressure to save monthly. You could even encompass the possibility to pitch towards their future wedding fund or offer a large helping hand towards the deposit of their first home. Although these occasions may seem far off in the future, you will be amazed at just how fast the time will fly and how enjoyable those years will be without the additional and unwanted saving stresses looming about each month.
Why are classic cars a great investment?
- Historically, classic cars have proven to be one of the highest performing assets throughout the last two decades. Records have shown that after just 10 years, classics are able to sell for up to four times their purchase price.
- Trends are showing that more and more brits are ditching small investments in items such as wines and art and are opting for the larger and more profitably beneficial valuables, such as classic cars. This means that the demand for classic cars is ever-increasing at this time.
What are 2020’s best classic cars for an investment?
- Honda NSX. Launched in 1990 with a current cost of £50,000
- Suzuki Jimny. Launched in just 2019 but with a current cost of £25,000
- Nissan Skyline R32. Launched in 1989 with a current cost of £12,000
- McLaren 675LT. Launched in 2015 but already at a current cost of £180,000
- BMW M3 E46. Launched in 2000 with a current cost of £12,000
If you would like any further information on classic car investments, get in touch with a member of our expert Double Dee Autos team who will be happy to advise or assist you. Simply give us a call on 020 8460 3040 or drop us an email at [email protected] and we will get back to you within 24 hours.