Classic cars can be a good investment, bringing benefits such as road tax exemption and appreciating value. However, they can also come with financial pitfalls, which owners need to be aware of. With the rising cost of living, some classic car owners might soon find their passion unfordable if not kept in check. This article will provide some tips to help you continue owning a classic car on a budget.
Do your research before buying a car as an investment
If you’re looking to purchase a classic car as an investment, with a view to selling it on for a profit later, it’s important to do your research first. Not all cars over a certain age are rising in value. There is no guarantee that your purchase will be worth more in years to come. Vehicles that are neither rare nor in demand are likely to be worth no more than you pay for them for quite some time. It is not uncommon for models to depreciate in value as demand for certain vehicles wavers over time. If you’re looking for a relatively short-term investment, do your research and invest in a car that is reasonably cheap and swiftly increasing in value.
Watch your mileage
Classic cars tend to have a lot of miles on the clock simply due to their age. Keeping your mileage as low as possible can help you avoid rising insurance costs and additional wear and tear, which may soon lead to costly repairs. It’s a good idea to save your classic car for best. Store it in a garage and drive it only occasionally if you want to keep the ownership cost down. When storing a classic car, ensure you take some simple steps to ensure it isn’t damaged by pests while it’s not in use.
Do everything you can to keep insurance costs down
Insurance can be expensive on classic cars, but there are ways to keep the cost to a minimum. Do your research and shop around to find the best deals from different providers. You may be able to reduce costs by sourcing a package deal that includes, for example, property insurance and insurance for other vehicles. Raising your voluntary excess is another way to keep insurance costs down. Consider increasing this to the maximum you would be able to afford should you need to make an unexpected claim. In addition, you can save on insurance by keeping your classic car as secure as possible and storing it in a garage, as these actions will reduce the likelihood of you needing to make a claim.
Learn how to repair and maintain your car
When it comes to maintenance and repairs of classic cars, experts can be costly. If you don’t already have the knowledge and skills to maintain and repair your vehicle yourself, it’s a good idea to start learning. This can be a fun leisure activity, and there are plenty of free resources online to help you learn. Consider using YouTube to find video tutorials. Start simple and build your skills over time. Even just learning the basics could save you a reasonable amount over time.
Source, a cost-effective mechanic
Classic cars can be prone to faults due to their age and the inevitable wear and tear they have endured over time. If you aren’t yet a complete pro at repairing and maintaining your classic car, it is likely you will need to pay experts from time to time. This can be costly, so it’s worth shopping around to find a reliable mechanic with reasonable rates. Mobile mechanics are often cheaper as they don’t have all the overheads that come with running a business from a static premises. It’s always worth asking whether your mechanic could offer loyalty discounts, as this will allow you to keep costs down by using the same mechanic every time your car needs work.
With the rising cost of living, every little helps when it comes to money-saving tips. Following these tips will allow you to continue owning a classic car on a budget during these difficult times.