Photo: Julie Zeveloff/Business Insider
Peter Mullin won last year’s Pebble Beach Concours d’Elegance with his beautiful 1934 Voisin and he also purchased a Bugatti Atlantic for $30 million.But when it comes to buying these cars as investments, Mullin is not bullish at all.
According to Scott Reyburn at Bloomberg, Mullin believes investors that are not automotive enthusiasts are taking a huge risk by putting their money into a classic car.
Classic cars are appreciating in value and can be a fairly safe investment for those that are knowledgeable. However, Bloomberg reports that Mullin believes there is a good possibility of acquiring a car that may have a questionable history or buying a slightly incorrect model.
If that happens, the investment could be rendered a total loss.
Mullin also told Bloomberg that many cars are worth much more in original condition than meticulously restored. It would be pretty terrible to find out that the car you just spent $300,000 restoring was actually worth twice as much in its original condition.
These warnings come from an experienced collector, but we cannot help but wonder if he is trying to discourage others that are entering his space.
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