Money Talks News - Money Talk News - New cars look and smell nice, but they do something that's not so nice: lose up to 20% of their value by the time you drive them home.
However there is a type of car that doesn't depreciate: the collector car.
According to wealth consultants Knight Frank, collector cars have zoomed in value by nearly 500% over the last 10 years which is twice the rate of fine art.
When you think of auctions like Barrett Jackson, you think of million dollar rides, and there are plenty of them around. However not all of these types of cars are expensive. There are some that are reasonably priced.
The key is to find something that won't go down in value, but instead might go up in value and something you're going to love to drive.
First and foremost, don't go down this road if cars don't drive you crazy (in a good way). Like anything collectible, if you don't love it, the hassle isn't worth it.
Also, take note that no matter how good the deal is, don't buy what you don't like.
Another tip is to look under the hood. Never buy anything you haven't had thoroughly inspected by a professional. If you find rust, it's dust. This goes for the engine and the body.
Make sure what you're driving is comfortable. Classic cars can be profitable, but some are not nearly as comfortable or reliable as today's cars.
Take your time and do your homework. The Internet makes fact-finding easy.
Finally, look for tomorrow's classics today. Some 70s and 80s cars that aren't classics now could become that way. Keep an eye out on what you could get in cheap.
Want a list of affordable collector cars? Head over to the Money Talks News website and search for "cars".