Collectors should stick with significant makes, such as Aston Martin, Ferrari, Duesenberg or other well-known names, because they hold their value and there is a large support network of clubs and international shows available for assistance. Being able to exhibit cars at shows and drive them in rallies is part of the pleasure of owning a classic car, and also adds to the value of the individual vehicle.

A car that has been driven or owned by a famous person or that has won a significant race in the past is more valuable than one exactly like it but without the history. But the prestige does not have to come from a past event. A car that wins the top honors in its class at a show such as the Pebble Beach Concours d'Elegance or best in show there increases dramatically in value.

"We invite people who are an important part of the carcollecting hobby to show their cars at Pebble Beach, and the benchmark for car value is often set here," says Sandra Kasky Button, Pebble Beach Concours d'Elegance chairwoman. "There is no better time or place to sell a car than at Pebble Beach, but car collecting is not just for profit. It is for fun. People do not invest in cars just to make money."

But cars will hold their value if the owner learns the meaning of "provenance," says Myers. The history of each individual car is important.

One-of-a-kind masterpieces are solid investments. If less than 100 were produced, the value is going to be good. If less than 50 ever existed, it is even better. Building the right collection and then gaining a reputation as a collector can provide the opportunity to sell a full collection at a private auction. Certain celebrities, like Ralph Lauren, are as well known for their almost priceless car collections as they are for their professional success.

But a collector does not have to have the unlimited funds of a Ralph Lauren to have a significant and fun collection. Joseph C. Cassini III, an Essex County, N.J., Superior Court judge, says he is on a limited car-buying budget but has managed to collect 17 classic cars of substantial value. Cassini's father was in the construction business and left his son with a trust fund that has enabled him to indulge his love of the automobile.

"I fell in love with a 1956 yellow Thunderbird. That was my first collector car in 1976 when I was straight out of law school. That got the juices flowing. Then I bought a 1953 Corvette and some less expensive Jaguars, but I was a novice. I did not know about 'matching numbers,' meaning the engine and transmission match," says Cassini, who has since learned these lessons. "Also, you don't want to get 'upside down' in a car-where you buy a $500,000 car and put an equal amount into restoration and then find out the car will never be worth more than $600,000."

Tax considerations also have to be taken into account and sometimes financing part of the cost of an expensive automobile is more advantageous than paying the sales tax, Cassini advises. Some people who trade often form dealerships to eliminate sales taxes.

If a restoration is in order, there are companies that restore classic cars, making tires, engine parts and bodies to match the originals. Speciality companies, such as Hagerty Insurance Agency in Traverse City, Mich., also have grown up around the world of car collecting.

"There has been almost a perfect storm for car collecting,"says CEO McKeel Hagerty, who is a car collector himself. "Baby boomers are the wealthiest generation to ever live, and they are hitting the right age and they love cars. So there is a large population and a lot of money available in car collecting right now.