Instead of playing the stock market you should be sinking your money into classic cars.
As an investment, they’ll deliver a much better return in the long run.
That’s the message from a company called Kwik-Lift based on five of the most expensive vehicles Barrett-Jackson sold in January 2018.
These results were calculated by using a dollar amount invested into Standard & Poor’s (S&P) 500 Index, a series of funds commonly used as a benchmark for the US stock market, and comparing it to the same dollar amount to purchase a vehicle.
“There’s always someone who thinks restoring a car is wasted money, so we tried this little experiment to prove the value of the classic car hobby,” says Jason Peters, director of Kwik-Lift.
“Whether or not it actually proves our point, having the conversation and creating this chart was a lot of fun.”
Using models from 1968 through 2015, here’s how the team calculated the return on these motor vehicle investments:
- Start with the MSRP of each vehicle. These numbers are based on historical or actual vehicle records.
- Take that MSRP amount and consider an investment placed into an S&P fund on January 1 of the car’s model year.
- Take the 2018 value, or the price it fetched at auction, for each vehicle. Subtract the MSRP from that number. There’s the return on the car.
- Using the DQYDJ S&P Periodic Investment Calculator, the team calculated the return of the MSRP investment that would have been deposited January 1 of the specific year. The chart represents the returns on the S&P investments as of March 31, 2018.
- The caveats: These calculations do not account for vehicle maintenance nor insurance costs for the cars. The calculations for the stocks do not include taxes.
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