Overhaulin'

If I drive ~5,000 miles per year, and I buy a classic car, will it hold value better than a new car?

I'm considering getting a classic car, cost between 10K and 20K, as my primary car. I guesstimate that I'd drive it around 5000 miles a year or less. I'm not thinking of it as an investment, so much as a break even car. New cars drop their value so quickly and even with repairs, I figure I'd be financially better of with a classic. Note that it would be a previously restored car. I'm not a mechanic so I'm not trying to make money by fixing it up.

Public Comments

1. I figure I'd be financially better of with a classic. -------------- You figured wrong then. I'm sure you're basing this off of how much someone would buy a "classic" for, but ANY vehicle is only worth what a buyer wants to pay for it. And there is no certainty that this price would be more than or even as much as you bought it for.
2. it all depends on the 'classic'. Many do go up in value like Challengres, Cudas, Chargeres (I am a Mopar guy...) But if you get a 73 Fury Wagon, dont expect much. Classic market is very fickle too. There was a 3-yr period where anything Mustang was bringing all teh dough. That calmed and then it was all about 55-7 Chevys. Its very hard to predict what classic will be vogue in the future. If you go classic, stick to the "standards" - ie Camaros, Corvettes, the ones I mentioned earlier - those are cars that never lose their popularity. Keep in mind that old cars are rarely driven for a few reasons, First, they get lousy mileage. If you are only driving 5k/yr that is not a big of a consideration. Second, they are not as safe. They usually did not have great brakes, bad in collisions, bad safety restraints, no airbags - you get the picture. They are not cheap to repair properly. Parts are getting more and more scarce. Insurance is tricky on a classic, you have to get specialty insurance if you drive a classic. Your standard State Farm policy isnt going to be adequate There is a lot to weigh on this decision. Make sure you are thoroughly informed about the pros and cons.