buis 830 english_question_r03 assign.pdf

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English Question

Classic cars entail an older generation of vehicles with a significant historical

significance hence the need for preservation. The market for classic cars has always been high

due to the historical importance attached to this type of vehicle (Hoffmann, n.d.). Therefore, a lot

of people in the modern world have continued to invest in classic cars. Millions of people invest

in car collection; this entails classic cars, an essential collection to car lovers. Classic cars still

hold a place of honor in car garages and are often used weekend cruisers. For such reasons, a lot

of people still find it worth investing in classic cars. Joining the classic car community requires

sufficient knowledge of how the community operates. This entails knowledge on how and where

to source for the cars, work on them, and source for customers to sell the rebuild cars to.

Therefore, it is crucial to work with someone in this community already to offer guidance on

at a reduced cost, restored, and used for some years before reselling them at a slightly higher

price (Dhont, nd). Such cars include vintage Volkswagen Beetle or suicide-door Lincoln

Continental. Such classic cars can be acquired from as little as $20,000, refurbished, used for

some time, and then sold later at a profit.

Other types of classic cars are quite expensive. Some are trading for seven or eight

figures or more. High net individuals invest in classic cars to diversify their holdings, therefore

increasing their income sources. High-net-worth PEOPLE invest in expensive classic cars to

make money by renting them out for occasions and also drive them, especially on special

occasions.

Background about the interview

The interview was conducted using the otter app. This is an application that allows

automated notes to be collected in an online meeting. The Application allows audio recording of

the conversations entailed in the meeting. It also allows the transcription of the meeting content

and provides a summary of the meeting highlights. The interviewee's name is Faisal Nasser, a

classic car dealer who buys classic cars, works on them through remodeling and refurbishing

them, then sells the cars at a profit. Faisal Nasser is a mechanical engineer at Florida Tech and

Faisal Nasser began his car business while still in Saudi Arabia, where he was born and

raised. He moved to the United States upon graduating from high school. On moving to the

United States, Faisal Nasser pursued a bachelor in mechanical engineering from Florida Tech

University. After graduating, Faisal Nasser decided to continue with his classic car business,

which he had started while in Saudi Arabia. Faisal Nasser buys classic cars from different parts,

Investing in classic cars is a good venture that has attracted a lot of investors. However,

just like all other businesses, this venture faces a number of risk factors that may affect the

ability of investors to enhance their productivity. One of the risk factors is financial obligations.

Buying classic cars requires a considerable amount of capital that a lot of people willing to get

into this venture may not afford (Anson, Fabozzi & Jones, n.d.). Acquire a few cars, and other

infrastructure that is required can cause a financial burden. There is also the issue of market

transparency, where sourcing for the cars is not an easy task. Due to a lack of market

transparency, some people may overcharge, leading to reduced profitability. Investing in classic

Having mechanical engineering knowledge is vital in this venture. Mechanical

mechanical engineering, gave me an opportunity to learn the scientific aspects of that field. And

I think I really like benefited from studying mechanical engineering and I still read books about

it and I still learn more about that.” Having mechanical engineering knowledge enables one to

learn how each part works, making it easier to work on different cars and rebuild them for resale,

which is an important aspect of this business. It also facilitates learning on the scientific aspects

of different car models.

Classic cars entail a model of vehicles that were developed a long time ago where the

internet was not as prevalent as it is today. Therefore, information about such cars is not easily

available online because the internet was not as functional as it currently is. To learn more about

classic cars, one can use the classic cars guide books that offer information about each model's

functionality. Faisal explains that “There's like it called the user manual, because like when they

were built this car like some of the cars I walk on, like, 50 years old or 40 years old, so there

wasn't Internet back then. So, the at that time, they started making books, explaining every,

Every part of that car.” Each model of a classic car has a guide book also known as the user

manual. The user manual provides information on the different parts of the car, including how

the parts function and how different processes can be performed on the car (Fraser-Sampson,

2010). Such information may not be on the internet. With mechanical engineering knowledge,

Investing in classic cars can be a lot of work for the entrepreneur. As a business expands,

This passion pushes him to learn more about cars and work on them, making his work always

enjoyable.

People need to know about cars and, more specifically, the different types of cars they

will be dealing with for anyone getting into this business. Unlike modern cars, where one can use

the VIN to gain information regarding that particular car, classic cars are different, and accessing

information about them may be complicated (Nieuwenhuis, 2008). Knowledge of the classic cars

will enable one to know the right price for each classic car, avoiding paying more.

The business of classic cars has its challenges. There is the challenge of finding the right

car. Since the vehicles are not new, some people may lie about the description. One can buy a car

only to find out later that they were offered the wrong description and that the car is not in good

condition. Some cars may have broken parts that require more resources to rebuild therefore

reducing the expected profit margin from such vehicles.

The pandemic has also posed a lot of challenges on classic car investors. It has put a lot

of people into financial difficulties that made a lot of people sell their cars. With many people

looking for buyers, the car prices dropped, which was a win for this business of buying vehicles

and reselling at a profit. The pandemic also posed challenges in that as this business requires the

continuity. Classic cars have become very rare, therefore making it hard to get a car that can be

worked on and sold. There are a lot of scammers in the business who list a car that is not as per

the description. Such issues affect the credibility of the business

Rare cars have more value. One should also consider mileage, body condition, and engine

condition.

It is essential to do a lot of research on classic cars in order to have the right knowledge

of the type of car one is buying. This is crucial because some classic car models are closely

related in terms of appearance; however, their prices are way different. It is also important to

focus on specific cars to make work less complicated. It is also important to first work with an

expert before venturing into the business alone.

The market for classic cars contuse to be prevalent. Investing in the classic car

community is a profitable venture that requires knowledge on classic cars as well as great

knowledge in mechanical engineering. The venture also requires finances to purchase the

vehicles and rebuild them for resale. Knowledge on specific models is vital min this community.

car, avoiding paying more.

Anson, M. J., Fabozzi, F. J., & Jones, F. J. (n.d.). The Handbook of Traditional and Alternative

Investment Vehicles. Google Books.

https://books.google.com/books?hl=en&lr=&id=LKj39XK-

ufsC&oi=fnd&pg=PR13&dq=alternative%2Binvestment%2Bclassic%2Bcars&ots=3S2P

WNWFhj&sig=4-bZ2TOf1WDfeevBVOM_LCr9RI8#v=onepage&q&f=false.

Dhont, A. Opportunities and risks of investing in an investment fund related to classic &

sportscars. Louvain School of Management, Université catholique de Louvain, 2017.

Prom. : Grégoire, Philippe. http://hdl.handle.net/2078.1/thesis:11199

Fraser-Sampson, G. (2010, December 1). Alternative Assets: Investments for a Post-Crisis

World. Google Books.

https://books.google.com/books?id=AA017P5CIssC&dq=alternative%2Binvestment%2B

Hoffmann, S. (n.d.). The Integration of Classic Cars as an Alternative Investment in Wealth