We typically think of cars as a depreciating asset. Everyone’s heard the story of how your car will depreciate as much as 11% the second you drive it off the lot. But this isn’t true for blue-chip collector cars. The investment of the rich is actually an asset class that outperforms gold (collector cars have delivered returns of 300+% over the past decade).
Rally Rd is an app that lets you get in on this type of investing without having to purchase an entire collector’s car. Each car within the Rally Rd portfolio is divided up into 2,000 shares and investors can purchase shares in every car. Here’s Christopher Bruno explaining the genius of Rally Rd as an investment option:
Here’s a transcript of that clip from Business Insider:
Christopher Bruno: When people think about cars they often think of depreciating assets. We’re trying to change that. Collectible cars have delivered 300% plus returns over the past ten years. Rally Rd is an investment app where we take high-value, appreciating assets like collectible cars, and turn them into stocks. Essentially, each car on Rally Rd is a mini public company, which is divided up into 2,000 shares. Investors can create a diversified portfolio of interest in each of these collectible cars share by share, car by car.
Investments start as low as $50. Their goal is for everyone to have access to this high-value asset class. The buyer can buy and sell shares as they see fit.
Bruno: So each month on Rally Rd, we create what’s called a trading window where you’re able to exit your investment. Through the app, you can submit your shares for sale through a registered broker-dealer and we connect you to other potential buyers who’d like to buy those shares.
The cars featured in the app are always for sale.
Bruno: So we’re always tracking the data through the app and trying to understand when the right time is to actually exit an investment. When we do the funds that come back from liquidating that car get distributed among the investors. (via)
The goal behind Rally Rd is to help investors diversify their portfolios and in this goal, I think they’re certainly achieving. I can’t imagine that there are too many young investors like myself out there who are considering investing heavily in collector’s cars. It’s just not an asset that is on many millennial’s radars. But I certainly dig the idea of being able to buy shares in these cars instead of having to purchase the entire vehicle and be tasked with having to take care of the car myself.
If you want to check out Rally Rd for yourself you can visit their website and download the app.