Masters in Business: At The Money - Building A Car Collection
Host: Barry Ritholtz
Guest: Hannah Elliott, Supercar Reviewer for Bloomberg
Release Date: July 30, 2025
Introduction to Car Collecting
In the episode titled "At The Money: Building A Car Collection," Bloomberg Radio host Barry Ritholtz engages in an insightful discussion with Hannah Elliott, a seasoned supercar reviewer with over 15 years of experience in covering cars, the auto industry, and car culture.
Is Building a Car Collection an Ill-Advised Idea?
Barry initiates the conversation by addressing whether building a car collection is a prudent endeavor.
Barry Ritholtz [02:38]: "If you like cars and you want to have joy in your life, buy an old car. Buy a vintage car. It's fun. Now if you are hoping that this is going to bring you a lot of money a long time down the road, probably not the best investment class, but there are a lot of other values that you get from owning old cars that aren't just about the money."
Key Insights:
- Passion Over Investment: For most enthusiasts, car collecting is a hobby driven by passion rather than financial gain.
- Enjoyment Factor: The intrinsic joy and satisfaction derived from owning and maintaining vintage cars outweigh potential monetary returns.
Hobby vs. Investment: Understanding the Distinction
Hannah probes deeper into whether car collecting is primarily a hobby or an investment.
Barry Ritholtz [03:21]: "For the average person, this is a hobby for sure. There are a lot of expenses associated with owning old cars... For most people, yes, it's a hobby, it costs money, but you have a lot of fun."
Key Points:
- Recurring Expenses: Ownership involves costs beyond the initial purchase, including storage, insurance, maintenance, and repairs.
- Relationship with Cars: Viewing car ownership as a dynamic relationship involves ongoing investment of time and resources.
Starting Your Car Collection: Passion vs. Potential Appreciation
The discussion shifts to strategies for initiating a car collection.
Barry Ritholtz [04:07]: "Buy things that you genuinely like. Buy things that genuinely excite you... If you buy something you like, you know you will enjoy it. And if you make a little money on top too, even better."
Guidelines for Beginners:
- Personal Preference: Prioritize cars that align with your personal interests and excitement.
- Value Retention: While not guaranteed, cars chosen out of passion are more likely to be maintained well, potentially retaining or increasing in value.
Budgeting for Car Collections
Barry provides practical advice on budgeting for car collecting.
Barry Ritholtz [05:04]: "There is an entry point, price point for every budget... For instance, if you buy something that you really like, even if it loses a bit of value over the years, you still get the value of owning something that you genuinely like."
Budgeting Tips:
- Diverse Price Points: From affordable models like older Porsches or Mazda Miatas to higher-end vehicles like Rolls Royces, there are options for various budgets.
- Maintenance Costs: Consider ongoing expenses such as insurance (specialized providers like Hagerty), repairs, and storage.
- No Direct Correlation Between Cost and Fun: Expensive cars aren't necessarily more enjoyable or reliable than more affordable options.
Choosing a Fun Starter Car
Hannah shares recommendations for those new to car collecting.
Unnamed Car Enthusiast [06:28]: "Check out the Honda S2000 convertible stick shift... Now the answer I give people is find a well sorted out Mazda Miata... so much fun for so little money."
Recommended Models:
- Honda S2000: Previously a popular choice but now appreciating in value.
- Mazda Miata: Highly recommended for its reliability, affordability, and driving pleasure.
Barry's Endorsement:
Barry Ritholtz [07:19]: "Mazda Miata... It's such a fun car. Parts are readily available, it's very predictable... You can get one in driving condition for $8,100."
Establishing a Theme or Focus for Your Collection
The importance of having a thematic focus in car collecting is emphasized.
Barry Ritholtz [08:00]: "It's nice to have a theme or a focus because it creates efficiencies... You start to learn who the trusted mechanics are. It just makes it easier."
Benefits of Themed Collections:
- Specialization: Easier maintenance with trusted mechanics who specialize in specific makes.
- Community Engagement: Deeper involvement with local enthusiast groups centered around specific brands or types.
- Resource Optimization: Efficient part swapping and maintenance within a focused collection.
Engaging with Local Car Communities
Barry discusses the value of participating in local car clubs.
Barry Ritholtz [09:33]: "It's important... you have a network, a support network. They'll lead you to... the right mechanic, the right place to find a part."
Advantages of Car Clubs:
- Support Network: Access to knowledgeable members and resources.
- Community Building: Opportunities to form friendships and partnerships within the car collecting community.
- Educational Opportunities: Learning from experienced collectors and enthusiasts.
Storage Solutions Beyond Your Garage
Exploring various storage options, Barry highlights alternatives to personal garages.
Barry Ritholtz [10:52]: "Car clubs can be a little bit expensive, but again it's an investment in the hobby... They will also maintain the car for you in house, which is a great benefit."
Storage Options:
- Car Clubs: Offer secure storage and maintenance services, fostering a communal environment.
- Specialized Garages: Facilities that provide climate-controlled storage and specialized care.
- Private Storage Units: Personal storage solutions for those with adequate space and security.
Essential Resources for Aspiring Car Collectors
Barry recommends valuable resources to aid in car collecting.
Barry Ritholtz [11:39]: "K500 is an index that Simon Kidson runs out of England... They have amazing data on values, trends, history."
Key Resources:
- Hagerty: Specialized insurance for classic and vintage cars.
- Bring a Trailer: Online auction platform for buying and selling unique vehicles.
- K500: An advanced index for high-end car valuation and historical data.
- Auto Tempest: A relational database for detailed car searches and specifications.
Importance of Documentation and Due Diligence
Ensuring proper documentation is crucial when acquiring vintage cars.
Barry Ritholtz [13:03]: "You want to make sure you see the title with the seller's name on the title... The more maintenance records, the better."
Documentation Essentials:
- Clear Title: Verify the authenticity and ownership of the vehicle.
- Service History: Comprehensive maintenance records indicating responsible ownership.
- Ownership Duration: Prefer cars with long-term single ownership to ensure proper care.
- Professional Consultation: Especially for international purchases, seek expert advice to navigate title transfers and legalities.
Conclusion: Common Sense and Passion Fuel Successful Car Collecting
Barry wraps up the discussion by reiterating the blend of passion and practicality required for successful car collecting.
Unnamed Car Enthusiast [13:54]: "You don't need a ton of money. You could start with just something very basic like a Miata or an old SL, but find the cars you really like, do your homework, get to know your local enthusiast club... and learn from the experts how to make a good decision with a car that will bring you pleasure and maybe a little money for as long as you own it."
Final Takeaways:
- Start Small: Begin with an affordable, enjoyable model.
- Research Thoroughly: Invest time in understanding the market and maintenance needs.
- Engage with the Community: Leverage local clubs and experts for support and knowledge.
- Enjoy the Journey: Prioritize personal satisfaction and the joy of owning classic automobiles.
Note: This summary excludes advertisements, introductions, outros, and non-content sections to focus solely on the substantive discussion between Barry Ritholtz and Hannah Elliott regarding building a car collection.