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Last week, we talked about why Most Cars are Terrible Investments and this week, we’re going to start by talking about some of the exceptions to that rule.

There’s something magnetic about classic cars. No modern car has the same kind of look and feel and their simpler, more manual controls make them fun for car lovers to drive. For some, classic cars aren’t just luxuries, they’re investments.

Of course, not all cars are made equal and for reasons both serious and spurious, some classic cars capture the imagination more thoroughly and command higher prices than others. The most sought-after classic cars are, unsurprisingly, some of the most iconic cars of all time. Take a look at which cars from years past still demand—and deserve—our attention.

Which are the Most Sought-After Classic Cars?

Today’s luxury sports cars are quite nice. They have bells and whistles that weren’t even imaginable fifty years ago, but they don’t have the pure beauty of the Jaguar E-Type, the Maserati Ghibli, or the Aston Martin DB5 that was enshrined in our consciousnesses by James Bond. This is no coincidence; sports cars represent the aesthetic sensibilities of generations and the 1960s and 70s were landmark decades for the auto industry, technology, and society at large. Classic films and TV shows have given those times a special place in our memories, whether or not we had been born yet, and these cars are clear symbols of the era. In fact, when you picture a classic car, odds are that even if you don’t imagine one of those cars mentioned above, the car you imagine was made between 1960 and 1980.

Of course, high-end sports cars don’t tell the complete story. Muscle cars, if anything, are even better representatives of those decades. Typically much more affordable than contemporary luxury sports cars, muscle cars were designed for street racing, and they were made with three things in mind: a high top speed, impressive acceleration, and precise handling.

While the United States was the world’s muscle car maker, domestic car companies like GM Holden and the Australian branches of Ford and Chrysler produced classic muscle cars that you would probably recognise as distinctly Australian, like the GM Monaro, Ford Falcon Cobra, and Chrysler Valiant Charger. Australian classic cars are still the objects of fervent discussion, analysis, sale, and modification by groups like Australian Muscle Car Magazine and Collectable Classics, avenues through which you could easily research and price out classic cars.

Why Go After a Classic Car?

There are some good reasons to invest in a classic car beyond love of the machine itself. People see these cars as artworks as much as vehicles and are willing to pay quite a bit for one. If you’re willing to put in the time and effort to fix up a classic car that’s not in peak condition, it’s entirely possible to resell it for a tidy profit even if the purchase price at the beginning was already quite high.

Either way, plenty of financing options for classic cars exist. Taking out a car loan for a classic car is actually common for hobbyists, collectors, and those who want to fix and resell one. After all, the principal cost of any car is going to amount to a significant purchase. And, of course, if you’re interested in getting your hands on a classic car for any reason, it’s not a bad idea to look at your financing options. 360 Finance can help.

The common wisdom is that a new car loses half of its value the moment you drive it off of the dealer’s lot. That assumption is close enough to the truth because in doing so, a car undergoes the sinister transformation from new to used. However, not all cars lose their value at the same rate and older, so-called ‘classic cars’ can actually appreciate in value. So, we have to ask, can a car be an investment?

Rare or culturally significant classic cars, like muscle cars, can be valuable collectibles. In fact, classic cars can become so valuable that taking out a small car loan for one might be a great investment, especially one with superficial defects that reduce its cost. Fixed up and well-maintained, such a car can be resold at a profit or held onto as a high-value asset.

Some Age Better than Others

If you’re looking for a new car that you expect to resell in the near term, don’t despair! Even though classic and antique cars are by far the best proper investments, plenty of new cars lose their value much more slowly than most and make for a good option for minimising your losses on resale. Resale value rests on a number of factors, including the car’s availability, popularity, reputation, and brand.

The Red Book tracks car resale values in Australia and is a valuable resource for used car sellers and buyers. It looks at the best individual cars in various categories, including vans and compact cars as well as the best overall and luxury brands for resale. If, for example, you expect to advance in your career in the next few years and intend to buy a car soon and then resell it in a few years to finance your next, better vehicle, pay close attention to these statistics.

The Diamonds in the Rough: Cost-Effective Classic Cars

Classic cars, due to their rarity, their hard-to-find replacement parts and the difficulty in finding mechanics who can work with them, can be very expensive to buy and maintain. If you’re out to find a classic car for the love of the vehicle itself, then you’re not just looking for a monetary investment, and this may not be as much of an issue. However, if you are looking to make an investment, then you’ve got a little strategising to do.

Remember that you’ll most likely need to restore this vehicle. You’ll want to find out which classic cars are readily available and for which parts are relatively plentiful. You may even want to look for a good mechanic who’s experienced with that model. Hemmings has a good article on where to start in finding and restoring classic cars. Because it’s geared towards an American audience, the specific cars that it lists might not be the best for Australians, it’s a great guideline.

While most cars are terrible investments, there are a select few that you should look out for. With any luck, you’ll find a good car to invest in. To you, we wish the best of luck, and hope that this article has helped you make your first steps!

As our tagline states, we make finance quick & easy. To do this, we need a little help from you too and with the right proactive attitude, you can be driving down the road in your new car all in the same day.

According to Richard Burgess (Sales director at 360 Finance), “An application can be processed as quickly as it is keyed in to the system. There are no stop signs when it comes to a finance application through 360, only the occasional speed bump.”

We can boast about our speed of service because you have a dedicated finance consultant whose job is to process finance applications online, on-time, every time. Our consultants are directly connected to the systems of our 30+ lenders and your finance professional is at the ready to input your application and have it processed on the spot.

With the ability to process applications so quickly, this raised the question of what factors can slow down a car loan application?

This question was put to the 360 staff members and quickly the answers came flooding in. Here is a list of the most common speed bumps in the application process.

1. 1. Poor quality photocopies/faxes
      Ruby Metla (Car loan professional at 360) mentions that often scanned or faxed documents and licences will come back blurry or too dark. Jeremy Andrews agrees with this and suggests that you check your fax/copy settings first before sending your documents to your finance consultant. Garth Povey suggests using a smart phone camera as they can often yield great results for sending in photographs of licenses and medicare/bank cards.

1. 1. Honesty
      There is no need to stretch the truth when applying for a loan. Banks and lending institutions have access to more of your credit history than ever before with the introduction of the Positive Credit Reporting system and will pick up any discrepancies. This type of behaviour can lead to slower processing of your car loan application.

1. 1. Incorrect or expired documentation
      Dan Butler notes that expired drivers licences can slow down the process as lenders require current, non-expired copies.
      Another common occurrence according to several staff is when customers send through a notice of assessment instead of a full tax return. This can be avoided by using the checklist provided in our application request email and ticking off the documents as you send them.

1. Dealers withholding a tax invoices
   A tactic of some car dealers is to avoid handing over a tax invoice. Tax invoices are needed by finance companies to help you get the best deal. This strategy is designed to steer you toward taking a finance offer through the dealership which will often mean a higher interest rate and repayment. As can be seen in the testimonial by Logan H on the Start Local website, he saved $4000 in interest by obtaining the tax invoice and placing his application through 360.

25/02/2014
Great rate offered to me after waiting a whole day for the car yard to give them (360 Finance) the invoice to quote. I am happy I waited as Dan has saved me over 4000 dollars in interest to what the yard quoted. Thanks 360.

As a rule of thumb, remember to take care when faxing/scanning documents, always check the date and names listed and don’t try to secure a car loan that is out of your budget.

Our application process requires your assistance to make this process as quick & easy as possible so let’s iron out the speed bumps in the application and make the car loan process as fast as a Ferrari F1 pit stop.

Transportation is the lifeblood of a working tradesperson. Oftentimes, your vehicle isn’t just how you get to your client, it’s also where you store your tools and maybe even where you keep some of your records, your professional library and various odds and ends that help you do your job. If you’re a tradie looking for a new vehicle, you really have to ask: what can your wheels do for you?

What Needs to Get Done?

No two trades require exactly the same kind of work, and your ideal car, ute or van will reflect what you need to take with you on the road. For instance, carpenters need to move large loads like timber, furniture and woodworking tools. They might need to haul a trailer from time to time, as well. Electricians’ gear is smaller and they don’t have to haul so much cargo, but most of their equipment and the things that they work on must be kept safe from the elements.

Essentially, you have to ask yourself what job you need your vehicle to do for you. The carpenter above all is going to need a powerful vehicle with a lot of cargo space that’s capable of being hooked up to a trailer, can take a lot of abuse and can possibly even serve as a mobile base of operations. They may also need to be able to attach specialised tools, such as winches, to their vehicles. An electrician might be looking for a mobile workshop with a workbench and a well organised collection of parts and tools.

Once you have a list of your transportation needs down, it’s time to pick a vehicle. That’s a tough subject in and of itself, so you should read our article “Van, Ute, or Truck?” There, we look in a little more depth into which classes of vehicles are best suited to different jobs.

Beyond Doing a Job: Financial Considerations

Your vehicle isn’t just a means of transportation; it’s a major business expense. We can help you source car finance and equipment finance, and we can help you find the best deal on the vehicle you’ve chosen, but you should talk to your accountant before making a final decision. The fact that it’s a tax deductible business expense frees up a little capital that can help you grow your business in other ways, too.

Another good angle to think about when choosing a vehicle is how much value it adds. Would a more expensive vehicle that’s more powerful, has more cargo space, or can do more than another, cheaper vehicle allow you to land better jobs and make more money? If so, spending more up front would be a wise choice.

If you’re a tradesperson in the market for a new vehicle, then you have a lot more on your plate than most car buyers. However, it’s not any more difficult; you just have to weigh a few additional factors when making your decision. Just remember: as a tradie, your wheels do more than just move you.

Every trade demands different kinds of work from you and your vehicle, so it’s important to make sure that you’ve chosen the right one for the job. Some tradies need as much cargo space as possible, while others need the most powerful engine they can find. Whatever your needs are, the first step should be to decide what kind of vehicle you need. Will a car suffice? If not, you’ll need a ute or truck or maybe even a van.

Power and Cargo: The Truck

If you need to haul large loads of cargo, drag or lift heavy objects or tow trailers as a major part of your job, you’re going to need something that can handle heavy, oddly-shaped loads and provide as much power as possible. Trucks are perfectly suited for this kind of work; the open-topped flat beds allow you to stack vertically if you have to, and this design also saves weight by minimising the amount of chassis that needs to be hauled.

Trucks also tend to have powerful engines and stay high off of the ground, both of which are useful in hauling things safely. If you really need to protect your load from the elements, you can even place a tarp over the truck bed or buy a specially fitted cover. However, if you really need to keep your cargo safe from water, dirt and other environmental hazards, a van might be a better option.

Passenger Capacity and Weather Protection: the Van

Say you’re a glazier or an electrician, or you work with a crew. You’ll need a lot of space for equipment or passengers as well as protection from the elements. A truck or a ute won’t be useful for this, since they can’t easily be kept watertight and their beds aren’t safe to sit in. However, a van performs both functions admirably.

Vans can provide seating for something on the order of 10 passengers. In addition, if you have a lot of small equipment that is best to keep mounted on a wall or kept in boxes, vans provide a lot of wall space and enough room for a workbench. In fact, if you take out or fold down the back seats, they can be mobile workshops. They are perfect for mechanical technicians, locksmiths, knife sharpeners and other precision tradespeople.

The Middle Ground: The Ute

Your general-purpose handyman won’t need to move the kind of cargo that calls for a truck and probably doesn’t need the sheer volume of a van. However, a car probably won’t be able to take the kind of rough work and hauling that you’ll be doing—for instance, transporting timber or plasterboard.

What’s the difference between a pickup truck and a ute, anyway? The line is a little blurry, but utes are generally built on large car platforms. They can haul materials, but their steel structures are generally not as strong as trucks’. They tend to be smaller, lower to the ground and lighter duty, whereas trucks generally have distinctive profiles and are usually quite large. Utes are also a bit cheaper on average, so if truck finance sounds daunting, a ute might be a better option.

That’s our basic rundown of vans, utes, and trucks. We hope that this was a useful overview for you. If you’re ready to start looking for a specific vehicle, check out our article, Dependable and Deductible Vehicles.

Finding the right vehicle for your business isn’t easy. For starters, this is a business expense, and you won’t be making the same kind of decisions that you would for a personal car. You’ve first got to decide what kind of vehicle you need. Check out our article “For the Tradies: Van, Ute, or Truck?” if you want some advice on that front. Then you actually have to figure out which specific vehicle meets your needs and stays within your budget—and remember that this is a potentially tax-deductible business expense, so your budget might be higher than you’d think. To help you out, we’ve put together a short list of some dependable and deductible vehicles to take a look at.

Tax benefits of a work vehicle

Volkswagen Crafter

The Crafter is Volkswagen’s main offering for a tradie’s van. It has enough space to haul quite a bit of cargo and carry your gear, and its interior is well-protected from the elements. The most basic Crafter outputs 81kW, making this a decently powerful vehicle. Seeing as they go for about $57,000, the Crafter is a great tradie’s van.

Toyota HiLux

The Toyota HiLux is a well-known workhorse across much of the world, including Australia. With new ones ranging in price between $27,500 and $54,500, the HiLux is one of the most cost-effective US-style pickup trucks out there. The 2014 HiLux has received several major safety and efficiency upgrades, earning it a five-star crash safety rating in all categories.

Dodge Ram

Dodge recently released its Ram line of trucks in Australia, helping to fill out the under-represented niche of large pickup trucks. Rams provide a lot of power and cargo space, much more than your typical ute, with the smallest of the bunch, the Ram 1500, outputting 231kW at 5650 rpm. However, these pretty-looking trucks cost a pretty penny, starting out at a whopping $95,000.

Nissan Navara

The Navara is one of the most powerful trucks on the market, outputting 170kW with a maximum towing capacity of 3,000kg. If your work has you hauling and towing massive loads, this is probably the ideal kind of vehicle for you. It’s a lot more cost effective than the other powerhouse on this list, the Ram, starting at a manageable $42,000.

Suzuki APV

With adjustable seats, a high roof, and surprisingly tight turning radius, the Suzuki APV excels at moving work crews and at hauling lots of cargo with 3.4 cubic metres of cargo space and a maximum payload of 810kg. They’re incredibly cheap for what you get, too, starting at $18,000.

Those are just five dependable tradie’s vehicles that serve their purpose well and might make for a wise business expense. Of course, the best thing you could do for yourself now is to keep weighing your options. Look at as many different vehicles as you can so that you can get a good idea of what’s available to you and what’ll best suit your needs. Prices can vary, though, so if you want to get a better handle on how much you’ll be spending to finance your van or truck loan, plug some values into our car loan calculator and see what works out best.