If you are a car lover, you can quickly find that your hobby can end up costing quite a bit of money. A lot of upgrades, modifications changes to your car can start to add a lot to your costs but little to the value. This is why if you have a passion for cars restoring them. A classic is often your best bet.
Appreciation vs. Depreciation
We have all heard the saying, “it lost $5,000 driving
out of the lot.” All modern cars lose value as soon as anyone owns them.
Even if you buy a dealer special, demo model or second hand, you can avoid some of this, but 90% of cars will lose value. A brand new Audi can depreciate by 40% in just three years.
Who buys classics?
The target market for classic cars is usually the 40+ successful businessman who now has some money wants to buy the car of his
dreams. While you may have a car in mind. There are a few things you s hould bear in mind when it comes to buying restoring a classic.
1. Buy well
Like many things in life, if you get a good deal when you buy. Then the entire project will cost a lot less if you buy for a low price. The best deal you will get is from someone who wants to sell. Try contact via phone or email the owner’s clubs, restorers repairs ask them directly. It also pays to do an eBay, google search for “restoration project.” Sadly, many people attempt what you are about to often fail. Once the car becomes that thing that has been in their shed for two years. You can get a good deal.
2. Budget plan
It is best to discuss your project with the restoration expert who is going to do the work. While it is very good if you want to do some of the work. The mechanic will end up doing most of it. You need to know if both you he(her) have the time what parts will be needed how much it will cost. It is good to have a budget for costs a timeline of when which expenses are due. Try not to buy all the parts at once. Also, make sure you add the cost of your tools into your budget the costs of joining the car club of your choice.
3. Join an owner’s club
A good owners club can not only be the source of encouragement, advice help. It can also be a source of the car to be restored, the parts experts to contact. Many clubs are glad to see an old motor restored will have much practical advice on the cost of the project availability of parts etc. Don’t be shy to introduce yourself to the forum, mention the intended projects ask for help.
If done right, buying restoring a classic can be a gratifying hobby. There are also benefits to owning a classic car. You will be free from capital gains tax on any profit. Any cars made before 1974 are also eligible for a zero-rated tax disc. If you want to use your classic car to form a loan, then get in touch.
