Owning a Classic Car - Pros and Cons | DetailXPerts Blog (2024)

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Owning a Classic Car - Pros and Cons | DetailXPerts Blog? ›

Classic cars can be a risky investment. Even if you purchase a model that significantly increases in value after you buy it, you may still put more money into it with repairs and maintenance costs. Additionally, collector trends are unpredictable, so you can't bank on a specific model dramatically increasing in value.

Classic cars can be a risky investment. Even if you purchase a model that significantly increases in value after you buy it, you may still put more money into it with repairs and maintenance costs. Additionally, collector trends are unpredictable, so you can't bank on a specific model dramatically increasing in value.

The age-old adage is that the 100,000-mile mark was indicative of a car past its prime. But despite their complexities, modern vehicles are even more reliable, thanks to a multitude of technological advancements.

The “Classic” Classic Car Collector

For instance, the average age of today's classic and collector vehicle owner is 54 years old. No longer reserved for the wealthy one percent, more women are buying collector cars than ever before, too – and she's typically a 52-year-old.

“Regular maintenance from specialists who understand these specific models can mitigate some issues, but a higher frequency of breakdowns should be expected compared to more modern classics.”

Classic car insurance is usually much cheaper than regular car insurance. According to Baily Insurance Agency, a classic car policy costs around $200 to $600 annually. If you own an abnormally expensive vehicle, your rates may be higher. In contrast, regular car insurance usually costs over $1000 per year.

Owning a classic car can be pretty expensive when it comes to maintenance, or it can be very reasonable. As a general rule, the more expensive the car, the more expensive the upkeep, but other factors are also involved, including rarity of the automobile, accessibility of the parts, and age of the car.

Are classic cars being banned? Classic cars are not being banned, but it's likely the next few decades will see a shift that may eventually present a challenge for classic car drivers.

How often should a classic car be driven? ›

You should drive your classic at least once a month so the tires, belts, and other components don't wear out from lack of use. And besides, you bought the car to have fun with it, so taking it for a spin every now and then is a good thing.

What is considered high mileage on a car? Often, 100,000 miles is considered a cut-off point for used cars because older vehicles often start requiring more expensive and frequent maintenance when mileage exceeds 100,000.

Hagerty defines vehicles from 1900 to 1979 as Antiques or Classics. A car manufactured in 1980 or later is considered a collector car. Classic Car Club of America is even stricter in defining classics. As classic cars, they are only accepted between the years 1915 and 1948.

Key Takeaways. For the automotive enthusiast, one way to diversify an investment portfolio is to start collecting classic cars. Most cars lose value immediately after they are driven off of the dealer lot, but classic cars gain in value over time, due to rarity, performance, or special attributes.

The most significant con is the maintenance of classic cars. The cost of maintaining an old-timer, including insurance and maintenance, can be up to 20 percent of the classic car's value. Spare parts or even simple consumables may be really difficult to buy in auto parts stores, so you have to 'hunt' for them.

Specifically, classic vehicles provide many benefits including: allowing people to appreciate the nostalgia of days gone by; the opportunity to restore and bring a classic back to life; belonging to a community of likeminded people; and making a monetary investment that retains and/or increases in value.

Classic cars require regular maintenance and the occasional repair to remain pristine, from oil changes to tune-ups. On average, classic car owners can expect to spend around $1,000 to $4,000 annually on maintenance and repairs, depending on the vehicle's age, condition, and how often they drive it.

Classic cars are not being banned, but it's likely the next few decades will see a shift that may eventually present a challenge for classic car drivers. This includes increased availability of electric car charging points and decreased space at fuel stations for traditional petrol and diesel pumps.

A classic car loan is usually different than a standard auto loan, which will affect your funding options. Plus, you may need to seek out certain lenders to finance your dream car. If you're unable to qualify for a classic car loan, consider saving your money to make your purchase with cash down the road.

Learn more about how classic cars are valued. While the saying "the older the car, the lower the insurance" is generally true, it depends more on your coverages, location, and the car's make and model than its age.