Irene Jane Elcamel
Published on August 20, 2014
74 | American Hard Assets www.ahametals.com LUXURY & LIFESTYLE | Cars for the Next 20 Years Classic Cars In general, there are very ew cars made ater 1974 that are considered collectible. Classic cars can be a great investment but are usually expensive since they are already desirable or need a major investment in costly renovations. Many classic cars have had their value outpace traditional investments. The vintage Porsche and Ferrari markets tend to outperorm most other collector car markets. The Porsche 356 Speedster, one o the most iconic classic cars, has an average growth in value o about 61% or the last our years. By Comparison, in that same period, silver rose 33% and the price o gold 46%. There are even some rare cases o huge prot returns. The Fiat 600 rolled o the line in 1956. It sold in Great Britain or less than $1000 USD. A sky blue one sold at the RM Auctions in 2012 or over $40k, not a bad ROI. The most expensive car ever sold at auction was the 1967 Ferrari 275 GTB/4s NART Spider. It sold or a whopping $27.5 Million last year. The original sales price? $8,000. Cautions There are critical dierences between putting your money into a car as a collectible asset, and other hard asset investments. Unlike stocks and bonds, you need a place to store it. Gold and silver take up considerably less room than an automobile. You have to insure cars and maintain them. When considering whether to purchase a collectible car, ascertain whether it will go up in value enough every year to cover your annual expenditures on it. The insurance and maintenance costs each year can be considerable. Finding a good deal on a car and fipping it isn’t as easy as it might seem. As a seller at an auction, there is an entry ee and a 7-10% commission i your car sells. The cost o getting your car to the auction in a sae, enclosed transport can run several thousand dollars and don’t orget Uncle Sam! Capital gain taxes on cars can be as high as 31.8%, basically a luxury tax, and signicantly higher than most conventional investments. Modern Collectibles So what car can you buy today that will be a solid investment or tomorrow? No one can guarantee what will happen in the uture, but here are a ew automobiles that have something unique or collectible by today’s standards. From the aordable to the ridiculous, let’s take a look: Toyota FJ Cruiser Engine: 4.0 Liter V-6 cylinder Horsepower: 260 0-60 MPH: 7.3 seconds Top Speed: 111 MPH MPG: 16 city/20 highway Price: $ 40,000 Toyota originally developed the FJ Cruiser as a throwback to the iconic Landcrusier FJ40 o the 60’s. This year marks the last year o production or the FJ Cruiser. Collectors will likely gobble up the Trail Team package limited to only 2500 cars. Each one will eature the classic Heritage Blue paint job and matching roo. The whimsical, retro look has made the FJ Cruiser quite a success over the past eight years. Along with the throwback eel, it has some real-o road teeth. We had to include at least one SUV/o road vehicle on the list. With its limited run, and this being the last year model, the FJ Cruiser is an inexpensive, un car to grab and hold on to.