So what do you need to do if you are considering investing in a classic car as an investment?
My advice to clients is to adopt the following approach:
Get a good understanding of the characteristics of the particular marque that you wish to purchase and its quirks and challenges. Much of this information is now freely available on the internet, or from the secretary of classic car owners clubs;
Having chosen your classic car, investigate the prices that are being paid for such a classic and have been paid at auction in the last few years. Auction houses keep tables of sale prices and classic car magazines have comprehensive prices tables which will give plenty of useful information.
Identify a specialist mechanical engineer who can advise you about your proposed classic purchase and who can carry out an inspection before the purchase. Once again they can be identified from classic car magazines, or classic car owners clubs;
Consult with a specialist lawyer, who can advise you on which terms of purchase that you should impose if buying privately or, if buying at auction, what the auction terms actually mean! They may also have a stable of specialist motor engineers, of whom they have knowledge, to assist in the investigation and in obtaining the written valuation that you are likely to need, following the purchase, for insurance pur- poses!
Contact Philip Radford on 01242 248247 or email firstname.lastname@example.org
These notes have been prepared for the purpose of an article only. They should not be regarded as a substitute for taking legal advice.