The Industry Secrets To Selecting The Best Assets For Potential Appreciation Revealed...
Selecting the right asset to bring to the CarCrowd platform is crucial, and it's where our team spend considerable amounts of time and effort.
Below we're going to share our secrets of how we select the cars with the greatest chance of potential appreciation...
There are many factors which contribute to a car appreciating in value and each car has its own narrative and indicators which will point to a potential surge in value. However, nowadays those cars of our childhood have, in most cases appreciated out of reach.
The CarCrowd are bringing people closer to the cars of their dreams whilst also allowing you to benefit from potential appreciation, you can read more about that here.
If however, you're in the market to buy a new potential asset or just curious to know how we select our assets that we bring to the platform then read on!
Make It Special - Cars To Appreciate
This one might seem obvious but regardless, it's one of the most important factors...
Typically your run of the mill cars like your Ford Fiesta or Toyota Corolla are built to be used for 10-15 years and disposed of at the end of it's life cycle, they're also mass-produced and don't capture the hearts of petrolheads. This changes however when you add a few choice letters on the end such as; RS or GTI for example.
Look for something that is separated from the rest; low production runs, special editions are a good start couple that with a car that has a motorsport pedigree and you have a strong foundation for an investment.
Green With Envy - The 25 Year Rule
The next point to consider is world-wide desirability, makes and models that are coveted globally just opened up your resale possibilities ten-fold.
For example in the states some cars do not meet there emissions regulations this means some desirable cars never reach US soil meaning the states have to look on in envy as Europe and Japan enjoy those cars that are otherwise unobtainable, at least until they reach 25 years old.
This means cars that are approaching 25 years old tend to see a sudden spike in value as the states can then import them, we've made a list of cars that the USA can't wait to get their hands on.
Lastly buying the 'right car in the wrong market' for example; a LHD drive car in the UK is less desirable due to our RHD configuration, meaning prices will be lower to buy. On the flip side however, it will have more appeal to the US and some European countries leading to greater potential returns as you're effectively buying the car well under market value.
Nostalgia - The Cars of your Childhood
We typically find that nostalgia plays a massive part in pushing up valuations as well.
We've seen this in play out before with cars such as the Jaguar E-Type and MGBs as they approached 25 - 30 years old the people who loved and admired those cars as kids are now in a position to purchase said cars. We apply this same logic now to cars from around 1985 to 2005 as cars built in this era are approaching 25 - 30 years old too and we have already seen heavy price increases all makes of car from hot-hatches to supercars.
History and Provenance - Only The Best Will Do
Once the right make and model has been identified it is important to try and buy a solid example, typically you want to purchase a car that's in near mint condition as possible, the cheapest on the market will typically mean it needs large amounts of repair work and with older cars these repairs can quickly add up and eat into your profits. Unless you can get the car for a price that takes into account the cost of repairs then this may be a viable option for individual buyers if you fancy a project and getting your hands dirty.
At the CarCrowd we only provide the best of the best on our platform, we use our network of dealers and contacts in the automotive arena to find those original, off-market examples with outstanding history and provenance as this presents the best case for an investment perspective.
Summary
In short, following these steps will lead you in the right direction for a good investment car but it is important to do further research into market prices and follow previous sales trends websites such as Glenmarch and Classic-GT offer handy graphs that display sales prices of a wide range of makes and models globally and by specific regions which can help you gauge what you should expect to pay.
The CarCrowd offers fractional investment opportunities into some of the worlds most iconic cars you can check out what we do by reading our short intro post or view our website below!
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