If you love classic cars and investing, there’s a relatively new company that combines both your two passions.
Called Rally Rd., the service allows investors to own a share of a collectible automobile for as little as $50 (£39/ €44). According to the company, they have a team of experts who select “rare, investment grade, collectible cars that we believe are appropriately priced and will increase in value over time.”
Rally Rd. then acquires the vehicle and offers equity shares in them. This process is handled by a mobile app which allows investors to learn more about the vehicle, check its provenance and view pictures of the car. If investors like what they see, they can buy shares in the automobile.
While investors will own a faction of the car, they won’t take possession of it. Instead, the cars are stored in a secured, climate-controlled facility with 24/7 video surveillance.
Rally Rd. goes onto says their cars are museum quality and are only “driven professionally for maintenance purposes.” While that might disappoint some people, it’s understandable and the company eventually plans to allow people to visit their collection and “participate in unique driving experiences with similar cars.”
When shareholders want to cash out, there’s one day a month when they can attempt to sell their shares. If another investor is interested in purchasing shares in your car and their offer is at or above your asking price, then the sale will clear and you’ll get your money.
The idea is pretty interesting and the company complies with U.S. Securities and Exchange Commission regulations. Unfortunately, the service is only available 32 states due to licensing limitations.
Fox Business says the service currently has 75,000 users who have an average of $1,000 (£776 / €885) invested in multiple vehicles. The company also has around 25 cars which range from traditional exotics to oddities such as a 1990 Ford Mustang 7-Up Edition.