im thinking about purchasing an antique police car to use in parades and car shows….i would think that if a person has the money to invest in such, its impossible to lose money on the car as long as u keep it in excellent condition
yes, you can loose money you have upkeep a car that old has a tendency to rust, floor boards rust all that has to be fixed you have to buy the car for a lot less than what it is worth to break even when you sell the car
The market depends on what type of car and the demand, I recently watched a car that had over 200 K invested only get 93 K at auction and it was a super bird..pretty rare auto
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yes, you can loose money you have upkeep a car that old has a tendency to rust, floor boards rust all that has to be fixed you have to buy the car for a lot less than what it is worth to break even when you sell the car
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It is almost guaranteed that you will lose money.
The only ways to ensure that you make money are to buy a "future classic" while the prices are still low, particularly if you buy a genuine limited-edition car. Like a Grand National (still possible to get relatively cheap). Or if you’d bought a Shelby Mustang in the 70s or 80s, or an AE86 Corolla in the 90s.
In almost every other instance, with the exception of the rarest of rare muscle cars (almost everything else has too many unique parts to be cheaply restored) and other old American iron, you WILL lose money on an old car. It is a HOBBY, not an INVESTMENT.
If you’re talking about buying a show car in show condition and keeping it as a trailer queen in show condition, you will be wholly at the mercy of the market, and it will still cost you money in space and equipment. Prices on classic cars go up and down all the time. It may trend upwards in the long run, but it is possible to lose money on the sale.
The easiest cars to break even on, or (barring maintenance and ownership costs) make money on, are beaters. 15 year old economy cars, particularly Honda and Toyota. You buy a 1000 dollar Honda and keep it in good condition, it’s still a 1000 dollar Honda 50,000 miles later. Throw on a few junkyard parts to improve its condition, and you can turn a 1000 dollar Honda into a 1500 dollar Honda for 100 dollars.
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Look, if the buyer pays too much for ANY car, then he is going to lose money the next time he tries to sell it! It is all a fuction of supply-and-demand. A car is worth what somebody ELSE is willing to pay for it.
If you seek to buy a "classic" auto, and then sink TOO MUCH money into it to restore it to its original conditon, then you have to make up both the original purchase price, plus the restoration cost, (and, allowing for inflation and increase in the cost-of-living, the cost of garaging, insurance, security, and the cost of transportation if you don’t drive it from one show to another, as well as the auctioneer’s percentage of the purchase price,) you can easily lose a lot of money on the deal.
If you do this sort of thing as a business, then don’t let your hobby get in the way of a sense of the business costs involved in classic auto restoration. The number of man/hours involved in this work is sometimes enormous. IF it is not done as a labor-of-love, then don’t go into it ! (Unless you have another source of income, or are independently wealthy. In which case, it really doesn’t matter…and you would not be asking us on Yahoo! Answers. )
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