It seems at some point in our lives many men and some women get the classic car bug. It could be they want that car they dreamed about in high school or even had back then. For others, it is the idea of taking a rundown classic and restoring it to mint condition. Some people just like buying investment-grade cars with hopes of profiting off them in the future. No matter what the reasoning is for wanting a vintage car, before you buy one on a whim, let us dive into the reasons you might buy a classic car, along with developing a plan for getting the best car for your budget and lifestyle. Be a wise classic car buyer and buy what you like.
Why Are You Buying a Vintage Auto?
As noted above, people buy vintage vehicles for all kinds of reasons, and being realistic about why you are buying a classic car is essential if you want it to be an enjoyable experience rather than one filled with rancor and regret.
The key is to buy for all the right reasons for you. So buy what you like.
For example, you might want to get a 1969 Camaro convertible to go get milkshakes with the family. Maybe it is a 1962 Impala rust-bucket/project car, assuming you have the time, money, and dedication to restore it, is going to take several years before it is roadworthy. By that time, your kids are already off to college, and they have no interest in hitting the malt shop with their parents. In this case, a turnkey, ready-to-drive option may be the best bet for you.
If you are someone with lots of spare time (and perhaps money as well) who enjoys fixing anything mechanical, a full restoration project might fit your profile.
If you want to buy a unique car in immaculate condition with strong investment potential, that car is going to be doing a lot of sitting without much tinkering or driving required. But as I will explain next, it is important to understand that most classic cars do not actually turn out to be a good investment.
Most Classic Cars Are Not a Good Investment
We have heard of the guy who doubled his money on a car sitting in his grandmother’s garage, but most attempts to flip a vintage vehicle for profit do not turn out that way.
The truth is that these old cars are simply that: old cars. They have carrying costs: storage, maintenance, insurance, etc. Depending on the car, these costs can run hundreds to thousands of dollars per year.
And that is not to mention restoration costs, of both money and time. That 1969 Camaro we referenced earlier might require $15,000 in work to get it in the condition you desire, and it will still be worth about the same price you paid for it. A 1962 Impala might cost $40,000, require $100,000 in restoration work, and now be worth $70,000-$90,000. Even if you do the repair work yourself, you might save tens of thousands of dollars in labor costs but spend hundreds of hours in the garage away from your family. This begs the question: What is your time worth? If you like cranking a wrench on the nights and weekends, go for it. If you are thinking you will spend a couple hours a week working on a project car, you could lose interest long before it is appreciated in value.
Is your plan to buy an investment-grade vehicle that you do not plan to drive but will instead park in a temperature-controlled garage, waiting for demand to push the price up, do your research carefully on what car you buy. For example, many cars from the 1950s and 1960s have had no price appreciation for a decade. One theory is that the collectors, generally aged 60+, who used to desire these cars are either dying or downsizing their collections. Meanwhile, cars that were popular in the late 1970s to 1990s are experiencing price appreciation as the children of this era approach middle age with discretionary income to burn on collector cars.
A Word on Classic Car Prices
Classic cars come in all prices and conditions. You can pick up a near-mint condition Model T for around $10,000-$15,000. You cannot even find a project Porsche in that price range.
As a broad rule, more money spent upfront will save you gobs of money throughout the life of the car. As you scroll through classic car ads, you will often see statements such as “$75,000 invested, asking $45,000 or best offer.” Is the seller lying? Probably not. Restoration projects, especially those done at professional shops, involve hundreds or thousands of labor hours plus parts. Once the work is done, the owner may drive it around for a couple years, get bored with it, and dump it on the market. This is where you move in to save yourself thousands of dollars.
A collector car usually has no functional or practical value. Just like you would not depend on a 1982 Commodore 64 for finishing your work report, you are not going to jump in your 1982 DeLorean DMC-12 to pick up your son from basketball practice in the middle of a snowstorm. In many ways classic cars are valued and priced the same way as other fine art is condition and demand. Scarcity may add to the allure of a car but does not always guarantee a high price. Compare this to how your kindergartener’s art project is one-of-a-kind but will not be on the block at Sotheby’s next to a Klimt or Dali.
A Few Ideas on What Classic Cars to Buy
Even though something like a Bricklin SV-1 (made in the mid-1970s with a total production of around 3,000) may really be intriguing to you and cause traffic jams as people stare at you at stoplights, there are much better cars for a first-time collector. For your first classic car, like with really any collection, stick with the popular models. Here are the main reasons why the quintessential collector cars are great for first timers:
- Parts availability. Many of these cars can be built out of a catalog. In some cases, you can even order an entire steel body for the car. This is important because you want access to parts that are reasonably priced and readily available.
- Support. There are classic car clubs for all your major cars across the nation. Whether you are a DIY guy or simply want to join a club to talk about your passion for the car, it is nice to know there are other people in the same position as you. Many of them are more than willing to give advice or even lend a hand.
- Exit. Even though you are in buying mode now, one day you will probably want to sell your car. It is a lot easier to sell a mainstream classic with an established marketplace.
Once you leave the fantasy world of TV most classic car owners do not make money on the purchase and resale of their vintage car. So, for the average buyer it really comes down to buying the car you like and want to enjoy, and not for trying to calculate the return you may make on your investment.
Above all, take your time and enjoy the hunt for the car. The time you put into the research will pay you back tenfold once you find the right car for you.
