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Buying a classic car can seem like an expensive hobby. The purchase price is only part of your investment – by the time you’ve added on the cost of repairing and restoring your vintage motor, things can get very costly indeed. But that’s not to say that you won’t be able to recoup or even make some money on your classic car, if you wanted to (after you’ve had your fun in it, of course).

While talk of people making more money from buying and selling classic cars than property or gold might be a little over exaggerated, it’s true that you can turn a healthy profit from investing in a classic.

However, it very much depends on picking the right car to start with – it’s much easier to lose money than it is to make a quick buck. You need to have your ear to the ground on what classic cars are growing – or set to grow – in value and then find one in decent condition.

If you do manage to find that classic car which could make you a pretty profit, don’t forget to invest in adequate classic car insurance, too. Lancaster Insurance are specialists in arranging classic car insurance, as well as cover for vintage and other classic vehicles.

We can quote for virtually every classic car available, offer discounts to club members, and even cover you while you embark on a restoration.

So, what are the top tips for making money on a classic car?

Check the auction values

It surely goes without saying to do your research, but sometimes it’s easy to let your heart rule your head when purchasing a classic, especially if it’s a model you’ve wanted since childhood!

The first thing you should research if you want to make money is valuations. Current auction values are a good place to start, but be mindful that sale prices of the very best cars in a marque can be misleading.

In other words, don’t think that just because a particular make and model sold well at auction, you should follow the money. There might have been specific reasons why it proved a hit with bidders on the day.

Conduct your own research

By all means keep an eye on auction sales – but supplement your findings with your own research to see if there is an increased demand for a particular classic car or whether it’s just a one-off.

Remember, high-quality examples of low-production run models from prestigious manufacturers will always do well. These typically have low mileage, are restored to a very high level, and have an element that makes them original.

Provenance is key when buying a classic. If the car you’re purchasing has 30 or 40 years’ worth of receipts and maybe a birth certificate proving its age and marque, that will likely make it reach top money.

Seek cars that bring enjoyment

You’ve got to be aware that valuations will fluctuate – just because a classic was hot property last year, doesn’t mean it will be the same this year. However, classics that bring owners some enjoyment for their investment tend to do well no matter the year.

We’re talking about those cars which are suitable for road rallies, racing and the like. Vehicles like this can be hard to get your hands on – but if you keep a keen eye, you don’t know your luck.

Be passionate about your purchase

While we’ve cautioned against buying with your heart, being passionate about your purchase is still important.

If the hairs on your neck stand to attention when you drive a car, then the chances are so will someone else’s when they take it for a test drive. Also, if your investment doesn’t provide the profit you predicted, then at least you’ll have had enjoyment from it.

Don’t just go for looks

As the old saying goes, looks can be deceiving. A gleaming classic at auction might see you reaching for your wallet without a second thought, but don’t let your heart rule your head.

It might look like a great deal from the outside, but you’ll want to find as much out about the vehicle as you can including any associated costs – and that starts with any extra buyer fees if you’re purchasing it from an auction.

If you’re going to turn a profit on a classic, you need to know how much you’re pouring into it. While it might not be possible to foresee all of the associated costs, you can get a good lay of the land.

For instance, if you find a car that has a rust issue – but spare parts are readily available – you might be able to undertake the necessary work to restore it to its former glory without it costing the earth.

Consider an older car

As per legislation, cars 40 years and older will no longer have to undergo their annual roadworthiness check, known to most as an MOT, while being eligible for free car tax (VED). While this might only be worth a couple of hundred quid a year in savings, every penny counts when you’re trying to make money.

Also, when it comes to selling your classic, telling buyers that they won’t have to pay out for VED or an MOT can prove a nice selling point. So, consider a classic that is older than 40 years.

Choosing the right classic car insurance

It may seem obvious, but make sure you are insured and taxed if needed before you move a vehicle if you do successfully buy one.

As we’re specialists here at Lancaster Insurance, we have access to classic car insurance and vintage car insurance schemes in the UK.

As a leading, reputable provider of classic car insurance for over 30 years, we are committed to offering our customers a wealth of experience and exceptional customer service.

We work with carefully selected underwriters to enable us to offer both comprehensive and bespoke insurance solutions, with our customers in mind.

Using our great experience and knowledge of the industry, we are able to quote for virtually every type of classic available, even those models that are hard to insure.

To get a quote for your classic, call our team on 01480 484826 today and you’ll be on the road in no time!

Policy benefits, features and discounts offered may very between insurance schemes or cover selected and are subject to underwriting criteria. Information contained within this article is accurate at the time of publishing but may be subject to change.