eeluddy wrote:

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Seen this posted on kijiji today. Thought it might be of interest. Wish I had thought of posting it!! Your comments please."If you are planning to purchase and Antique or Classic vehicle you should keep some things in mind. A vehicle in this category is expected to be at least 25 years old. However, a regular production run vehicle that is 25 years old does not automatically command antique status and valuation. It may just be an old car that is nice or a future collectable. On occasion, a vehicle that is 20 years old may fit into this heading if it is an extremely rare production vehicle and is in exceptional condition as compared to others. However, this is extremely rare. An old car is just that, an old car. An appraisal by a qualified collector car appraiser is always strongly recommended for an older vehicle, for insurance evaluation. This appraisal is only good for that reason though. As a guide for a sale, it is a strictly market value look that tells the actual possible sale price. Never the appraisal summary. Do not be overly influenced by it. A review of several Canadian sites, including this one, will show actual sales value. For instance, (a random vehicle as an example / not an actual car for sale here) a 1963 Chevrolet/Cadillac/Ford/Lincoln/ et cetera/ (the make is not important) in perfect condition may command an appraisal of $25000, for insurance purposes, however, no one would ever pay that. The actual sale value would be in the $10-12000 range if the seller was very, very lucky and more likely considerably less ($4000 or so less, is more normal). Just be cautious in your searches. There are a lot of hopeful vendors with larger than reality expectations trying to attract your dollars. In good economic times this is always unwarranted. In present economic times it is not even a dreamers possibility. You can see the ads running for weeks and months at a time. Expectations and reality often clash, rather than meeting in real balance. No one will ever care that you invested $20,000 and countless hours of labour restoring a vehicle that is only worth $8,000 on the market. It just makes a good purchase for someone else because of the hit you will have to take financially. They will have empathy for you, but not sympathy or understanding.

A collector vehicle should never be considered a short term investment or money making venture. More often than not it is a money loosing venture, but a venture of love. So buy for yourself and your preferences. Invest in the vehicle to restore it for your wants and needs. But it should not be considered anything more than a fun personal venture. In the very long term, the chances are that you may have a return on your investment, (most often for an unmodified / unaltered/ restored vehicle / {modified vehicles have little value as a collector because of the cost of returning them to original, collector condition being higher than their real value}) but the biggest return should always be considered to be the personal satisfaction and shared fun that the vehicle has provided you with.

I have been a buyer and collector for 30 years. Happy hunting".

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I agree totally!! The only profits I have are 500.00 to 1000.00 at best. I usually lose but I don't care because I only want to save the cars I am interested in. I wish people would build more drivers and less chip foose high dollar cars. Nobody can afford that. Old cars are old cars and don't need to be like new cars. They have body roll and pitch, make funny noises, and sometimes smell funny. Buy and build what you can enjoy and can afford. The market will and is following this trend. It's better for the hobby.

 

Also agree, and in fact I think the term "collector car" is what makes it wrong - if you want to buy a car to enjoy, great, but if you want to "collect" something stick to postage stamps or porcelain figurines. "Investing" in a car is just plain stupid, they (like boats) have always been depreciating assests, not appreciating investments.

I did buy a 67 Corvette 427 roadster in 1978 for $5,000 (it was just a nice used car back then) and did finally sell it for $30,000 in 1995 but I chalk that "profit" up mostly to inflation. And I did not buy that car to make money, I bought it to have fun, a weekend-only cruiser. Not a stored-away "investment."

And I am now happier with my 56, it is easier and cheaper to work on than that Corvette was, I don't have to worry about "original" parts, it'll be a blast to drive (some day!), loads more HP than that Corvette or other cars I've had, and if it gets hit and totalled (like I had happen to my 68 Corvette, my 68 Mustang, and my 85 Corvette) no problem, it's insured for what I have into it, I can build something else!

I guess the exception I would make to paying more than depreciated value is if some caring person kept a car in such good shape that 25 years later is isn't all rusted and damaged and poorly repaired, and is a desirable make / model (NOT a 1960 4-door Falcon), then that person deserves to be paid more.

Maybe we can start referring to good old cars as "Enjoyment Cars" not "Collector Cars" eh?

Dave

65Camino wrote:

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Why would you be getting less then what a car is appraised at? Are these bogus or inflated appraisals? I have my cars appraised at what the market dictated when they were done. I know the market has softened but come on, an apprasial should be replacement value.

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Unfortunately, that is exactly what is happening in South Africa.  Some "dealers" are trying to turn a profit and the price starts at E.G. 150,000 and starts dropping by the month to E.G. 50,000.  "Appraisal" is a relative word.

I see this on a daily basis!

 

Astro Jet wrote:

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The only value they have (appraisals) is if you have a total loss and you have the 19A endorsement on your policy, if you don't have 19A your appraisal is for all and intents and purposes useless and you will only get what the market dictates it is worth at that time, regardless of the investment you may have in it.

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On the insurance aspect of all this.............

Astro Jet is correct. The 19A Endorsement (in Ontario) is an often-overlooked piece of the insurance puzzle that can help you keep your sanity if your car is totally wrecked or stolen. It is also called 'Agreed Value'. In other words, the insurance company agrees to cut you a cheque for the agreed value (usually based on an appraisal). No ifs, ands or buts. If it's a total loss, you already know how much you'll be getting.

It's the only way I can get any sleep at night. If you knew how much my '67's agreed value was, you'd understand.


If some of you have a vehicle worth mucho denaros, better look into Agreed Value.

-- Edited by 67HEAVEN on Wednesday 29th of July 2009 12:11:01 PM

  I agree that some people get a little carried away with their asking price but if you want a car that is in decent condition you're gonna have to spend a little money. Alot of people think they can get an antique car in very good condition for under $5000. That's just not going to happen.
   I looked allover western Canada last summer for a 69 Beaumont and bought the one that I thought was the best price for the condition it was in. I looked at some overpriced cars that were in pretty rough shape. I guess the car is worth what you are willing to pay.