When Precision Automotive Group was featured in the CNBC article on the classic car bubble, “Jay Leno Wannabes? Classic Car Market Goes Into Overdrive”, I warned investors to be wary of inflated car costs.
In just a glimpse of the article, here is some advice on how the market is turning and for those looking for unbiased car advice.
My colleague, wealth advisor Rob O’Dell, was looking for an objective automotive fiduciary “as an extension of his own fiduciary responsibility to his clients.” He said, “The wealth advisor needs to look outside the box at the total client, whether their holdings include art, wine or autos.” This relates to the car bubble we are experiencing right now. I don’t shy away from telling investors the truth about where the booming car market is going.
There are many people out there in the industry who don’t have a collector’s best interest at heart. Now Rob introduces me to his clients as an “objective source of expertise on how to collect and/or invest in classic automobiles” because I want the best for all collectors looking to build their car portfolio.
I even warn investors to be careful of where they are getting their automotive advice from. “You’ve got to know who your car guy is, whether it’s an insurance agent, car dealer, broker or mechanic. How are they compensated, and what are their limitations and experience?” All this influences their recommendations and your perception of your future investment.
For example, in the article I state that “the current appreciation rate is unsustainable – citing a 1994 Porsche 911 Turbo that went from $55,000 to $300,000 in the past nine months.” This is exactly what I am talking about today with clients as they look for their next purchase. If the investor listens to an industry insider with the wrong advice and wrong intentions, they could end up with a poor automotive with negative earnings.