Whether you purchase your classic car through an advertisement, a dealer or an auction, a passion for these vehicles can be very expensive. Many classic car owners end up with more than one in their collection, as their enthusiasm evolves and the social aspect of classic car clubs becomes a large part of their life. However, if you are a first-time buyer of a classic car, fear not: it may not be as expensive as you think, and there are always ways your classic car can begin to pay for itself.
The first thing to consider is how to pay for such a purchase. You will soon discover that there are many companies that specialise in finance for classic cars. However, interest rates can vary on personal loans, so research is essential in order to find the best deal. Remember, too, there are bonuses to owning a classic car – for instance, any vehicle registered before 1974 is exempt from road tax, and there are special insurance rates which can result in lower premiums.
You can often make your money go further by purchasing a classic car at auction, but bear in mind that many older models will need a fair amount of bodywork and mechanical attention, which add to the purchase price considerably. If you have good mechanical knowledge, you can save a lot of money by taking this on yourself. Indeed you may well be purchasing with a view to renovation and selling on for a profit, in which case ensure that you have thoroughly researched which classic cars are most popular so as to secure the best return.
Whether it be a Morris Minor or a Rolls Royce, once it’s roadworthy your classic car can make you money, perhaps through hiring it out to advertising agencies, magazines or television – think Antiques Road Trip and Heartbeat or through private hire for those who dream of driving a classic car but can’t afford it.
However if you are a collector of classic cars and intend to loan out your valuable vehicles, remember to make sure you are suitably insured – you can benefit enormously from a bundled insurance policy for car hire fleets, as it will not only give you substantial savings but also the convenience of having all your policies with just one company.
Another way to earn an income is by hiring your cars out for weddings or special events. However, on a cautionary note – you will need a Private Vehicle Hire (PVH) licence and insurance if you intend to chauffeur clients, together with a special licence for yourself and the bookings. Your local authority will be able to tell you exactly what is required for the type of business you are planning.
There are two exceptions for which a PVH licence is not required and that is weddings and funerals. You will need to inform your insurance company, though, as there may be some considerations to be taken into account; however both are lucrative options if you own a suitable vehicle.
Finally, if your car is a head-turner, it may be possible to earn money through advertising. This is not to say that your car would be blatantly adorned with publicity. Many advertisers are happy with a sticker in the rear window or on the bumper. This way you can turn your classic cars into profit by doing what you love most – driving them.
How do you finance your love of classic cars?