As we are nearing the end of the year the hobbyist begins the thought process of do I sell my classic car and/or do I look for another vintage car to prepare for the next cruising season? Do I buy locally or at one of the winter classic car auctions? Then the biggest question is; what do I sell my vintage car for or how much should I pay for my newest classic? Finally most importantly; what is the classic car’s fair value?
Determining classic car fair value is important whether you are buying or selling. There are a lot of things to consider when calculating the fair value of a vehicle like the condition of the car or truck, how original it still is, its rarity, documentation that has been kept, the history of the vehicle and of course current market trends.
A collector car’s fair value is best determined by understanding supply and demand, using historical sale prices, and reviewing current asking prices on available inventory. For collector cars, 70% of classic and antique cars are sold through private sales, 20% through auctions and 10% through dealerships. With all of these various channels in play, no single valuation or appraisal tool can definitively tell you precisely how much your vehicle is worth. However, using multiple valuation sources will provide you a better starting point in determining market value for the vehicle value.
Whether you are buying or selling you want to make sure that a fair price is set for a classic car. There are many variables that go into this decision like the condition of the vehicle, originality, its rarity, documentation, the history of the vehicle and of course current market trends.
How Classic Car Values Are Calculated
Classic cars are expensive but because they are vehicles that are no longer in production, how are classic car values calculated? It can seem like a mystery at times, especially with prices being so high. How are these prices justified? There are different ways to understand how people arrive at these figures. Most a relatively obvious but others are a little more obscure.
- Value Sources. When it comes to researching the classic car market, we will often turn to outside sources like Hagerty, Kelly Blue Book or even NADA. While no one single market appraisal can be taken as gospel, but we do consider looking at multiple sources.
- Demand. Demand is the prime factor in establishing how classic care values are calculated. Of course, the car will need to be in absolutely perfect condition, fully restored and ready to show, to demand top dollar. You can estimate what to charge for a classic car in perfect condition by checking collector magazines and seeing the asking price for similar vehicles in the same condition.
- Rarity. A rarer car will have a higher price. With a model where just a few were ever produced, and there are quite a few classic cars that fall into this category, the owner will be more or less able to name his own price especially where a complete restoration has been carried out. In these instances, simply forget any guide. If the models only come on the market every few years, the sky will be the limit as far as price goes.
- Restoration condition. A professional quality restoration will bring a higher price than an amateur job that has not been well executed. In other words, the condition of the classic car has to be taken into account when classic car values are calculated. It can be hard to take these into account in printed guides.
- Current level of restoration. A fully restored classic car is going to sell for a much higher price than one which is only partially restored. Calculating the value on a car that still needs work is tricky. To come up with a price, you need to judge how much will have to be spent to complete the job. This could range between a few hundred and a few thousand dollars and will obviously have to come off the value. The true value of a classic car can only be judged when all of the work is finished.
- Project potential. A project car is a classic car that still has to be restored. Again, coming up with a value is tricky since the price will depend on how deep the restoration needs to be. Understandably, this will have the lowest price of any classic car but the amount of labor and money needed to complete the project has to be taken into account when assessing the value.
Online Collector & Classic Car Valuation Tools
Fortunately, there are several free collector car value guides and tools that, collectively, allow you to research the range of values for your car (based on the trim package, included options and vehicle condition) and help determine the price you should ask (or offer) on a collector car. Below you will find a list of reputable sources to refine your estimate of your vehicle’s value.
Online Classic Car Valuations
- Hagerty Insurance
- ClassicCarValue.com
- NADA Guides – Classic & Collectible Car Values
- Collector Car Market Review (CCMR)
- CAARGUIDE.COM resource that uses a proprietary Classic Automobiles Appraisal and Resource Guide
- Kelly Blue Book (KBB.com)
- Classsic.com – Classic and Exotic Car Market Trends and Historical Prices
- ConceptCarz.com – Historical Vehicle Auction Trends: Values by Year
ClassicandSportsCar.com – Auction Results by Year/Make/Model
Available Inventory – Vehicles Listed for Sale
Available Inventory – Online Vehicle Auctions
How to Determine Classic Car Value
For some individuals, determining antique car fair value can be challenging. However, once you know some of the factors and steps involved, you should be able to do it easily. Aside from market trends and their inherent charm, there are many other factors which affect the value of an antique car. Before purchasing one to add to your antique car collection, here are some of the steps you can follow to properly assess the value of an antique car.
- Determine the popularity. Some cars can maintain their value better compared to others, and this is true in antique cars and modern cars alike. This is primarily because some cars have an enduring popularity. This popularity may be based on the emotional reactions of enthusiasts for certain car makes and models. Popularity can also be determined by their overall appeal which would include their classic look and uniqueness.
- Assess the overall quality. If the antique car was expensive when it was manufactured and first released, then it is very likely that it would have an even higher value several years or decades after. Antique car collectors and enthusiasts look for quality workmanship, well-made cars and ones more in demand. If the antique car is well-crafted and made with high quality materials, then it would probably have a value which would continue to increase in time; provided that it is maintained and cared for properly.
- Check the condition. Antique cars, similar to other used modern cars, are also valued based on their working condition. This is actually one of the most important factors that affect the price and value of an antique car, particularly because it has been around for many years. It is very likely it has already endured several repairs or requires some degree of restoration. If an antique car needs major restoration work, then it would probably have a lower value. However, if the antique car is well-maintained and in good condition, then it would definitely be valued higher.
The closer an antique car is to its pristine original condition, the more expensive it is. However, classic cars which have been restored properly could also increase the value of the car. Possibly making it almost as valuable as one that is in original condition. Keep in mind that the quality of the restoration also matters as inferior restoration work could greatly decrease the car’s value.
Classic Car Condition Defined
To begin determining the fair value of a classic, let us start off with determining the condition. After all, that will be the biggest deciding factor. Most sources use a scale of 1 to 4 when defining a vehicle’s condition. #1 being the best and #4 being the worst. According to them, more than 80% of vehicles in the market are either condition #3 or #4. Many sellers and buyers might disagree, but far too often sellers will try to overstate the condition of their classic and inexperienced buyers tend to believe them.
Here are the 4 conditions of a classic car that are widely used:
#1 Concours Condition. These are the absolute best vehicles in the world. Simply put, they are the best of the best and very few restorations will ever reach this level of perfection. Tire treads are perfectly groomed, paint and chrome shine like mirrors and every piece of the vehicle has been meticulously restored to better than new condition. Everything runs and drives brilliantly.
#2 Best in Show Quality. These vehicles will win local and regional car shows, but just are not quite concours status. They may very well have been #1 condition at some point in their life, but they have since been driven or have noticeably aged. To the untrained eye, these cars will appear to be perfect, but experts will be able to point out small flaws that keep them from being perfect. They are still however thought of as excellent quality.
#3 Good Condition. This is where most classic cars will land in the condition categories. They very well may have some poor issues like condition #4, but other good factors bring them up just a notch. These classics will run and drive fine but are often restored using incorrect parts. The paint, body and interior are usually in decent shape leaving the average Joe to think they are in great condition. The average Joe’s great is still Hagerty’s good.
#4 Fair Condition. At best, these are the classic you see being used as daily drivers. There will be visual flaws to the naked eye and possibly even worse. These vehicles are rarely original and more like Frankenstein with non-stock part. No major parts should be missing either. A fair conditioned vehicle should still run and not be considered a total jalopy.
If you feel that a vehicle does not even qualify as a #4, then it is best to let a professional assess the vehicle if you still need to determine a price. There are ultra-rare cars that are worth a pretty penny even if it is in a dilapidated state. Take for instance a 1971 Pontiac GTO Judge Convertible. If you ever come across one, it will certainly be worth a mint even if it is rusting out in a field. Doubt that will ever happen because there were only 17 ever made, but I think we made our point.
Other Variables for Classic Car Valuations
The next big determining factors are going to be variables like originality, its rarity, documentation, the history of the vehicle. It makes sense that a number matching car will carry more value than one that is not. Some estimators may even consider numbers matching to hold the same weight as condition in their evaluation. Originality is also a highly valued factor. A vehicle that has the correct factory paint and interior color schemes will likely have a higher value than one that has flames on it. I say likely because there are certain situations where a custom paint job could provide more value. Sometimes this can boil down to a matter of preference and opinion of the buyer.
Rarity of the car is also a big factor. Were there only 100 ever made? Well then that obviously makes the car more collectable and instantly increases the value. On the other hand, if you are valuing a 1969 Camaro, there were over 240,000 produced. Obviously not as rare as the 1971 Pontiac GTO Judge Convertible.
Documentation and history of vehicles plays a part in estimating a classic car’s value. If records were kept by every owner through ought the vehicles life and all restoration and repairs can be confirmed with receipts, then that can certainly make it more valuable.
Do not forget to factor in the other variables, and you will be on your way to determining the value of any classic car or truck you intend to sell or purchase.
Finally
Since there are no set costs for classic cars, buying and selling is not always easy. However, using these tips will help you to make a more educated decision before selling your collectible car or purchasing one of your own. A fair selling amount is one that makes sense to both the buyer and seller, and you can do your part by participating in the process of classifying the car, determining its condition, and comparing the sales of similar examples.
When you do finally make the decision to purchase a classic car or truck then do not forget to get it properly insured for your protection.
