Rarely, if ever, have cars been an “investment” in my life. For myself and countless other gearheads around the world, cars are not a way to make money, they are a perfectly efficient way to lose money. This is not to say classic cars cannot make money in the long run . . . just that 99.99999% of the time, they end up costing you bread, not earning it. If you’re going to invest, the stock market seems more likely.
Now, it seems, some people would beg to differ.
Cash For Classics
According to Kwik-Lift, manufacturers of high-strength steel home and repair shop maintenance lifts, “investing” money in certain cars is actually a good thing. Kwik-Lift says their data “proves” investing in a classic or soon-to-be classic car can offer a better return than putting money into the stock market. Kwik-Lift bases this on five of the most expensive vehicles Barrett-Jackson sold in January. Kwik-Lift compared those sale values with what the same amount of cash would have gotten you compared with the return from the Standard & Poor’s (S&P) 500 Index. Kwik-Lift concluded that their study “verified that collector cars are indeed a solid investment.”
And it’s not just Kwik-Lift. I recently read that a German investment firm said more or less the same thing about “investing” in classic 911s. And yes, while the German’s article does jive with what Kwik-Lift is saying, it’s also worth noting that u...