After years of sacrificing money to save money, you are ready to reward your patience and purchase that sparkling piece of art you hold dear: a vintage car from the 70s. Or maybe you are considering buy a discolored jalopy and restore it to its former glory.
No matter where you are in your buyer’s journey, you may still have doubts about this important purchase. Is Buying a Classic Car Worth It? Is it a smart investment? Unlike a new set of wheels, a classic car could appreciate considerably. Or, the necessary repairs could cost more than the car is worth for you. If you have any doubts, or want to make sure you made the right decision, stop and consider the following factors:
1. Careful inspection of the car
You must thoroughly inspect the vehicle in question before making the purchase. Its polished exterior might hide a Pandora’s Box of mechanical issues, so you’ll have to open the hood and make sure everything is in order.
For this, you might want to hire a trusted mechanic expert. If you are considering restoring a vehicle that may have suffered years of neglect, an expert will help you cost the restoration to help you decide if it’s a worthwhile investment.
One of the main signs of decay that you will want to look for is rust. A little rust here and there is fine, but large swaths on the engine or car floors can cost a pretty dime to fix.
After performing a physical inspection of the car, you should always perform a background check when registering it. Making sure the VIN on your title matches the official record will help you avoid buying a stolen or counterfeit car.
2. Use and storage
Will you be using it more than the weekend in the car to get to the city? Will it be a permanent resident of your garage, to be removed only during vintage car competitions? If you intend to use it as your primary mode of transportation, you will need to be prepared to spare some time and money to keep it in good working order. Keep in mind that wear and tear from daily use will decrease its value if you intend to resell it.
3. Repairs and maintenance
If you intend to eventually sell your classic car for profit, you need to consider how much it would cost to improve the vehicle and attract potential buyers. Remember, the car is a classic and ceased production decades ago, which means finding spare parts will be a challenge. You will also need to take it to a specialist for the job, which will cost a lot more than the average auto repair.
4. Insurance coverage
Collector’s and classic car insurance for your artwork and history on wheels will differ from your insurance coverage for your other vehicles.
For one thing, your insurance provider will not assess your vehicle based on the current market value of that particular model. Instead, you and the vendor will need to negotiate an accepted value. Also, if you intend to drive your classic car sparingly, it will affect the price of your premium.
When choosing an insurance policy for your classic car, you may want to consider providers who specialize in insurance for old vehicles. To learn more on this specific topic, visit www.thehartford.com.
5. Have a resale plan
Again, if you are buying a classic car with the intention of reselling it, you have to be careful with how you use and store it. You will need to keep its body, interior and guts in pristine condition. It is also useful to enter as many contests as possible to find potential buyers.
6. Understand the risks and disadvantages
Owning a classic car will earn you admiring glances wherever you drive, and potentially a hefty paycheck when you decide to sell it. But owning a classic car comes with a fair share of risks. Before making the purchase, you should spend some time determining whether you really want the car despite the responsibility for maintenance.
Also, keep in mind that driving a classic vehicle can be difficult, especially if you are used to the conveniences of modern cars. They will likely drive slower, have fewer safety features, and even require a different type of fuel.
Driven by passion
The best reason to start with classic cars is that you just love them. They are pretty and unique, but require a lot of dedication and money to stay in good condition. If you are truly passionate about your car, you will know it is worth it.