A classic car storage business can be a big time and money investment for your customer, so it’s important you plan and predict a good way in how you can offer this service. Investing in cars has become a valuable asset to people’s portfolios, being a non-depreciating asset it has seen a huge rise in the last decade or so. It is now a big market.
The nature of car storage
Classic cars aren’t always practical. A classic car is an investment — one that you want to keep in the best condition possible. This could mean storing your joy ride away for the winter or longer if needed. Investing in seasonal or long-term car storage is an affordable way to protect your automotive labor of love if you know how to do it right. It might seem easy and convenient enough to drive your car into storage and leave it, but even older cars are meant to be driven.
Storing your classic car for more than a month without proper prep can have a detrimental impact. This can be on the integrity of the car and motor. In the UK, the market for car storage in London is big and varied. This is in terms of what there is on offer.
Location is key
Under ideal circumstances, a classic car should be stored in a clean, dark, and dry space. While it may be tempting to keep your car stored in an inexpensive old barn, the dirt floor and light exposure can be damaging. A garage attached to your home isn’t ideal either because the constant access exposes your car to the elements. Most vendors will work to offer car storage units for rent. This is to provide you with everything you need to keep your classic car in pristine condition. See if there is some good car storage facilities on offer near you. All of this is here and shared with you to make sure you store your car in the best way. If you are lucky enough to own a classic car, make sure you take the best possible care of your investment.
The market here is a big one
Thanks to increasing global wealth chasing a limited number of vehicles, the market for classic cars has done better than collectibles like coins and stamps over the past decade, sometimes even beating the broad stock index. The Historic Automobile Group International (HAGI) tracks the collector’s car market with a number of indexes. Its broadest is the HAGI Top Index, which tracks vintage collectible cars from Porsche, Ferrari, Bugatti, Alfa Romeo, and other brands.
Just as most investments carry fees, so too do classic cars. This is tangible personal property, and you’ll owe capital gains tax if you sell at a profit. Is your collectible in bad shape? Restoring a seven-figure car to concours condition – generally considered bringing an older car to showroom-new condition using original or exact recreations of parts, paint, and bodywork – can cost another seven figures.
Then there are ongoing maintenance costs, storage expenses, and insurance. Profits from the eventual sale of the car will also likely incur commissions / consignment fees. Also transaction fees, and transportation costs. This is because chances are you aren’t going to tow a Bugatti behind a U-Haul. Buying a new or newish car because you think it will be collectible someday is risky. Sure, you could get lucky, but chances are you aren’t going to be able to buy a cheaper car. You cannot then expect it to be worth millions in a relatively short period. From all of the above, this is where and how car storage is a great overall investment.