Thursday, August 13, 2009
Selling any classic car poses a dilemma to the seller and in most every case they seldom make a lot of profit. However, one can earn thousands of dollars by buying the car cheap and restoring it to its prime by themselves, thereby saving a lot of money.
Buying a car that is mostly 75% restored, in good running order for a low price is even better. Here, the owner simply needs to complete the job and resale at a higher value. The two major issues that prevent making a decent profit on restored cars are in the areas of engine work and painting. One could find a great buy for $1000, mechanically speaking, needing no engine work yet it needs paint. Even the cheapest paint job (if one cannot do it themselves) is around $1100 at most shops. A cheap, decent job from Maaco and a four year warranty, runs $2000. So, already you have $3000 invested. One can easily ad another $500 for maybe body work, tires, brakes, windshield.
If the buyer is trying to make money, it becomes harder. So, it is always best to look at Nada.com, classic cars tab, to find out what is the resale values. You may find out that you'll be happy to break even!
For instance, the bottom selling point for a 1966 Corvair Corsa Convertible with 140 Hp engine that is fair shape mechanically needing minor fixes or " a daily driver" according NADA is $5700. If the car was in good shape and no issues are seen within 20 feet, partially restored etc., paint is OK not dull, the resale price jumps to $12,000! If the car is like new and in excellent condition, it is $20,000.
While that is all great for a seller, the market is its dictactor. if the economy is bad, one might drop the price and if competition for similar cars are listed also, that drops the price. The seller's need also dictates the selling price based upon how urgent they need to sell it, even if they know it is worth more.
If you sell a 66-67 Corvair Monza hardtop, the worth within the three categories is far less:
$3000 for fair, $7000 for a semi-restored condition, and $10,000 for a "like new".
Notice that NADA does not even consider the mileage which can add to value if its low. A 67 Coupe with only 51K original miles certainly has more appeal and value than on with 100K. The value is of it is surprisingly small. It is more psychological because an engine that is poorly kept with only 51K, may actually have worse compression than one with more mileage, depending on its former owners.