There are several investment funds that specialize in classic cars. But this one uses an app. And with that, you can invest in a true classic for as little as $ 50, says Yahoo Finance.
The idea comes from three guys that present themselves as Chris, Rob and Max. Apart from a passion for classic cars, they also have an urge to democratize the classic car hobby.
So last year they founded Rally Rd. (pronounced as Rally Road). You can join by downloading the app. It gives you the opportunity to partake in the ownership of some great classic cars.
You can either buy shares in the IPO of a car, when the car is first acquired by Rally Rd.
But once you’re in, you can buy or sell shares of the different cars that are in the Rally Rd. collection and you just might make a profit that way. And then again… you might not.
The worth of your share goes up and down with the value of the car.
Of course, there are the costs of operating the cars, but if the value goes up more then these costs, there is actually a dividend that will be paid.
To owners of classic cars, Rally Rd. offers a chance to sell their beloved car not to just one collector, but to a whole bunch of investors, but without auction premiums or broker fees.
Rally Rd. selects cars that are for sale in the market, offered by private persons or by classic car dealers.
Once the car is selected, all members can find all necessary info on the Rally Rd. app. Through this app, members can also buy a share in the car. Initial offerings of cars come in 2,000 shares.
The price of the car varies of course, but in some cases, members can invest for as little as USD 50 per share, says Yahoo Finance in their article about Rally Rd.
Rally Rd. was founded in September 2016, the first two cars (“assets”, in stockbroker-speak) were acquired in December 2016. The cars in the Rally Rd. collection are all ‘blue chip’ category, meaning that they meet the highest standards.
Today, the collection consists of a 1977 Lotus Esprit S1, a 1969 Ford Mustang Boss 302, a 1980’s Ferrari Testarossa and a 1988 Lamborghini Jalpa, plus several cars of Ferrari, Jaguar and Porsche.
The cars are all stored in a purpose-built storage facility on the American east coast.
There’s one thing that the cars don’t do, and that is drive. Other then a professional drive every now and then for maintenance, the cars do not move.
But according to Yahoo Finance, Rally Rd. is planning some events for their members.