Not all cars are the same. It pays to know the difference.
It may seem counterintuitive to talk about older cars as sensible investments. Most of us see cars as depreciating assets that cost a fortune to maintain. According to common knowledge, vehicles are financial liabilities, not smart investments… right? Not true, and those who know better have a lot to gain.
The truth is that certain vehicles actually become more valuable over time, which makes them fantastic alternative investments. The reason for this is relatively simple. Classic cars are rare, beautiful things that many people are passionate about. And like anything rare and beautiful, there is a thriving market for classic cars filled with enthusiasts willing to pay large sums for the perfect car.
Stability through Passion
This passion separates classic cars from conventional investments like buying stocks or real estate. To most collectors, great cars are more than just lucrative investments, they are genuine treasures. Some enthusiasts will spend years searching for the perfect car. And once they find it, they’ll move mountains to get it in their garage. The other thing that sets classic cars apart from other investments are their long-term stability. It takes years for a car to be considered a classic. But during that time, a vehicle’s value rises steadily as it becomes increasingly rare. Take the 2002 BMW Turbo as a relatively young example. 17 years ago, when the car was new, it was worth no more than 30,000 Euros ($33,000). Today, the Turbo is a much rarer car. You’d be hard pressed to find a well-maintained specimen for less than 100,000 Euros ($110,020). Nearly twenty years may be a long time to wait, but with the right car and the proper maintenance, the payoff is virtually guaranteed
Too good to be true?
Unfortunately, even the best alternative investments aren’t foolproof. Like anything that sounds too good to be true, there is a small catch to investing in classic cars. In order to guarantee the steady increase of a vehicle’s value, a car owner must stick to two golden rules: maintenance and documentation. The importance of maintenance should be obvious. For a classic car to be valuable, it’s got to look good, run well and be as faithful to its original constitution as possible.
Documentation, however, is perhaps even more important. Without proper documentation, it’s impossible to establish trust with potential buyers. It is only by faithfully documenting the history of his vehicle that a classic car owner achieves transparency with potential buyers. Otherwise, how can the buyer be sure the vehicle in question has never, for example, been in an accident?
This is where we come in
The problem is, proper maintenance and documentation can be irritating and time-consuming. And this is exactly the problem solved by Gapless, the all-in-one app for your vehicle. Gapless offers a suite of services that simplify and streamline everything to do with owning a vehicle. With Gapless, car owners can digitize their documents so they are easily searchable, and even uncover additional data that can boost vehicle value. Gapless also offers an intuitive expense manager that keeps all maintenance costs organized and under control. What’s more, the dedicated team at Gapless is working hard to roll out more features in the coming months. Soon the app will be able to create detailed reports about your vehicle, remind you when it’s time for an oil change, and much more.
Investing well will always be tricky, but classic cars present an opportunity to invest with relatively low risk. All it takes is patience and a little due diligence. And thanks to Gapless, that diligence is now easier than ever.