So, you’re wondering how to start a car collection. If you are, you know that starting a car collection is more than just purchasing a few fancy vehicles and calling yourself a member of the classic car club.
Any responsible car collector will understand the work involved. You need to keep up-to-date on routine maintenance, find the right luxury car storage provider, and track the collector cars set to increase in value (that way, you can build a lucrative car collection).
When you buy a collector car, you can’t stick this asset just anywhere. Depending on the size of your collection, you’ll need an enclosed (and potentially climate-controlled) storage space, sure to preserve the value of your collector vehicles.
Ready to learn the ins and outs of being a car collector (like these A-list celebrities)? If yes, strap in your seatbelt and enjoy the ride!
Determine Your Storage Solution
Before you start making any purchases, you’ll want to arrange a storage location first, especially if you plan to build a collection of more than four vehicles.
Square footage, location, and security are the three main factors to consider when selecting a storage solution for your car collection.
You’ll want a storage option that’s…
- Close to your home residence for easy access
- Large enough for your specific model of car (a storage space that’s at least 10’x20’ is recommended)
- Reasonably priced (For more information on average car storage costs, check out this article)
Despite popular misconceptions, classic car collecting isn’t a hobby reserved for the rich and famous. With plenty of classic cars valued at under $10k on the market, just about anyone can start a car collection of their own.
If you’re looking to build a classic car collection on a budget, you’ll need budget-friendly car storage. Neighbor, a peer-to-peer storage marketplace offers car storage at up to 50% less than traditional car storage yards.
Keep in mind that the right storage solution will not only safeguard your car collection from damage but will also increase the longevity of your vehicles (all while preserving their value).
Establish Your Collection Theme
One of the top tips for starting a car collection is to establish a theme for your collection. A cohesive theme is what sets your collection apart from a random assortment of vehicles.
If you’re unsure where to begin, here are some popular car collection themes and vehicles you can start them with:
● Vintage cars (e.g. Chevrolet Series 490)
● Classic cars (e.g. 1965 Ford Mustang)
● Fast cars (e.g. McLaren F1)
● Sports cars (e.g. Corvette C8)
Prior to purchasing cars, it’s important to ask yourself questions like, “Am I more interested in vintage automobiles or sports cars?” and “Do I prefer rare models or those that are more readily available?” Perhaps the most important question of all is, “What type of collectible cars can I afford?
Regardless of the cars you’re leaning toward, take the advice of Jay Leno, who recommends listening to your heart when beginning a car collection.
Network with Fellow Collectors
Connecting with others who share your passion can provide valuable insights, technical guidance, and information on where to find/buy the collector cars you’ve been eyeing.
Interacting with other car collectors provides you with inspiration for your car collection goals as well as invaluable, firsthand information on market trends, pricing, and demands for various types of cars.
Attending car shows and track events is a fantastic way to:
● Meet other collectors and learn from their experiences
● Assess the competition in your area to prevent bidding wars and confrontations.
● Cultivate relationships with other collectors to make meaningful connections.
● Gain knowledge of the collecting cars industry
Never underestimate the power of networking, as it can lead to invaluable friendships and even potential leads for future purchases. Remember, the more you learn from the experience of other car collectors, the more successful your car-collecting journey will be.
Don’t Forget to Set a Budget
Get caught up in the excitement of buying the first car of your soon-to-be collection, and you might not stop to think as you write the zeros and commas on that check. Remember, a reckless purchasing decision is no way to start a car collection.
Before buying a collector car (or even building out your collectible car wishlist), you’ll want to set an initial budget, which will help prevent overspending and ill-advised decisions. Bear in mind, that the ultimate aim of collecting cars is to make a profit, thus, it’s advisable to avoid falling into debt whilst financing your collection.
The amount you spend on your car collection will depend on what’s significant to you as a collector, whether you’re interested in the legacy of the ’55 Thunderbird or the sheer power of the Shelby GT500. Keep in mind that maintenance costs can add up to a few thousand dollars annually for each car of interest.
Also, note that selecting the right insurance policy for your car collection is crucial. As a rule of thumb, you want to choose an insurance company that offers compensation based on the pre-determined, appraised value of your car.
Account for Maintenance Costs
A car collection isn’t a set-it-and-forget-it investment opportunity. If you leave your collector cars to gather dust in a storage unit or commercial garage, you can expect their value to depreciate (and quickly).
Keep in mind: a well-kept car collection not only looks striking but also sustains its value over the years.
It’s also important to remember that the maintenance your car underwent before you owned it (assuming your collector car isn’t brand-new) is just as important as the maintenance performed while it’s in your possession. Before you agree to a buy, request a car history report.
Questions like “Does the car have all its original parts?”, ‘How much restorative work has been done on the car?” and “Did the previous owner have exceptional or mediocre storage facilities?” will help you unearth all the information you need to know as a new car collector.
Final Thoughts
Whether you’re in it for the thrill of vintage rides or the investment opportunity, remember that classic cars are less weather-proof than newer models, and therefore, require proper storage.
If you’re a new car collector, you can find enclosed and covered car storage options through peer-to-peer storage marketplaces like Neighbor.
Frequently Asked Questions
Can You Make Money Collecting Cars?
Yes, collecting classic cars can be a profitable endeavor, as they often increase in value over time due to their rarity, performance, or special attributes.
How Many Cars Are Considered a Collection?
Owning three or more cars of considerable value or rarity constitutes as a car collection.
Is It Worth Starting a Car Collection?
Collector cars can be an excellent financial investment, with Hagerty reporting an average annualized return of 4.6% from 2018-2023. Having a car collection is therefore definitely worth it.
What Factors Should I Consider When Choosing a Storage Solution for My Car Collection?
When choosing a storage solution for your car collection, consider factors such as space, location, and security to ensure your cars are properly protected.
Can I Kickstart My Vintage Car Collection With Just One Old Car?
Yes, you absolutely can!
