Classic car owners know that an antique is far more precious than the price tag. Those new to collector car-buying might have their eyes set on a particular model or a favorite year, but buying an antique car takes more than cash and the standard vehicle checks at the dealership. Ownership of a classic car brings you into an elite circle of collectors that form a tight-knit community and take pride in their premium, classic cars at car shows and with friends. So, here’s a list of what to look out for when buying a classic car.
The Premium Factor
Classic cars exist within a realm of their own, and as such don’t adhere to the typical valuation standards laid out in the Kelley Blue Book. This is the industry leader in pricing models for the vast majority of cars out on the road. Typically, a vehicle’s value is derived from a consideration of its mileage and age, with a few additional pieces of information sprinkled in as well. This is because the majority of cars are used for transportation rather than a collection.
A car’s value is based on its continued performance, and as cars age and their mechanical parts are repeatedly used they become less valuable as tools for movement. Depreciation drags down the actual cash value of a new vehicle while collectible cars follow a different set of rules.
Classic cars are unique in this respect. They are bought for their value as an investment or collectible item. Similarly, the value of a classic car increases over time rather than depreciating like a normal vehicle. Antiques become rarer as they age because original parts become harder to find and the cars themselves dwindle in number as the years pass by.
The 1962 Ferrari 250 GTO is possibly the rarest car in the world, precisely because only 39 of them were made – and it’s impossible to fabricate anything but a replica of the ’62 today. A pristine model — maybe not a ’62 Ferrari though — is also a great conversation starter when pulling off a great blind date. Rolling up to the venue in a classic car is sure to impress anyone you may be meeting for dinner.
In order to get your hands on a true masterpiece of automotive craftsmanship, you might consider the expertise of a car buying specialist to help nail down that perfect chassis. No matter the type of car you are looking for, a car-buying service can help you hone in on the perfect model that meets your exacting specifications and pricing restrictions. From classic cars or vintage spare parts to a standard 2020 hybrid model, a car buying specialist is the best way to pull an end-run around the murky world of dealership visits. This will help you avoid the comparisons of nearly perfect vehicles while missing out on that one that’s just right.
Car insurance is another big thing for any vehicle owner. Even if you intend to keep your new vintage car in the garage for the next few months or even year working on the tune-up, insuring the vehicle is a must. The best insurance for classic cars has to be an agreed value policy. Car insurance policies typically rely on an appraisal in the event of damage to the car or a total loss. But the value of a classic car differs from this analysis because of its sentimental and high dollar resale value. Damage to a vintage will result in a massive underpayment by your insurance company unless to protect it with a classic car insurance policy based on an agreed-upon appraisal beforehand.
Buying a classic car is all about your tastes and desires. Finding the right car for your hobby takes some research and a little help from the professionals, but it’s worth it in the end.