As the largest retailer of classic cars in the world, RK Motors Charlotte has the track record to help our clients and customers cut through the fog of misinformation that can sometimes cloud the classic car market.
In 2008, when the worldwide economy was rocked by rapid devaluations in paper backed assets, we calmly and patiently pointed out to our customers that:
- The collector car market has historically been an “all cash” market and has never been directly subject to the inflationary forces of cheap and easy credit.
- High grade collector cars are typically rare, limited production hard assets. For example, Chevrolet isn’t making any more 1970 Chevrolet Chevelle LS6 convertibles.
- The cost to properly restore a vintage collector car, in most cases, exceeds its market value.
- Like any hard asset, the value of most classic cars tend to rise with the debasement of national currencies and keep pace with inflation. As the labor and parts cost to restore a car increase, so does the value of the existing pool of cars.
And, just as we predicted, the classic car market stayed stable and, over the past year, has seen a noticeable rise in values as investors worldwide look for secure places to store their hard-earned wealth.
In reality, when viewed over a 15-20 year time horizon, there is only one asset class that has outperformed classic cars: gold.
Does that mean you should cash out your retirement plan and buy up a bunch of collector cars? No! You can’t afford to go into this hobby unarmed or you risk blowing your money quickly. Classic cars have the characteristics of many collectibles, but are unique in many ways. A vast array of varying factors can significantly affect the value of any collector car at any time including:
- Original components or lack thereof.
- Production number of a particular model.
- Color combination.
- Presence or lack of historical documents.
- Generational demand.
- Survivor versus restored.
- Quality of restoration.
Look in a price guide or the latest issue of a magazine and you will see a wide disparity between the numbers, or, it’s one guy’s opinion.
We bring value to our customers because of the sheer volume of transactions we handle in a true retail environment (versus wholesale auctions). Want to know what your non-numbers matching, triple black 1969 Camaro Pro Touring with a ZZ502 and a 5 speed is worth? We can tell you-and the number will be pretty accurate. Best of all, we can back it up with a check or sale on your behalf.
What are the best cars to invest in? We tell all of our customers the same thing: the cars that bring the biggest smile to your face. The reality is that after you purchase a classic car and transport, service, store and maintain it, a realistic goal would be to have the car appreciate enough to cover your cost of ownership. Your bonus is enjoying the car for free!
Or, if you are like a lot of our customers and trade in and out of cars frequently, our accurate pricing platform and stable retail platform assures that we will give you a very favorable trade number when it comes time to swap your classic for something new that’s caught your eye.
An adage we use often is that it’s easy to overpay for a bargain but it’s difficult to overpay for the best. As classic car veterans knows, the difference between a #1 grade car and a #3 grade car can be $20,000.00 in purchase price and $80,000.00 in parts and labor. The #3 car will rarely appreciate it in value, while the #1 has a much better likelihood of bringing that “enjoy me for free bonus” that comes with a prudent purchase.
In summary, our commitment to our customers is to offer high grade collector cars, properly sorted out and accurately represented, meaning a great ownership experience for the customer. We certainly aren’t investment advisors at RK Motors Charlotte, but we do know a thing or two about which cars to put your money into. You tell us what would bring a smile to your face and we will do our best to put you in the driver’s seat of the right car!