Why do vintage cars cost so much? Truth about Buying a classic car
Looking at the price history for some old cars, their prices have completely exploded in the last 10 years or so. 10 years ago, a Ferrari 365 Daytona was around 200-300k, now its like 800-900. A Dino used to be 50k and its now up to 300+.
Miuras are at least 1-1.5 million and they used to be 500-600k. So, why are Vintage cars so Expensive? I did a Lot of Research on these. I asked few of the real time Vintage cars Owners. This is what I found out…
One of the main reasons the vintage cars are Expensive is that Some of the older cars have parts that are rare . So, they are more expensive to repair.
First thing to consider is complexity. Vintage cars are primitive when compared to Today’s models so are simpler to diagnose and repair.
Second is that there’s plenty of less expensive new aftermarket parts and remanufactured engines, transmissions and CV axles that are available at auto parts stores and online retailers.
Third is that the small independent auto repair shops are knowledgeable about Vintage Cars so can offer competitive pricing for repairs.
New & latest cars are designed to run longer with less maintenance and repair as opposed to older models , but when they do break down it can be more complex to fix , often requiring more complex diagnosis and disassembly, and the use of expensive computerised equipment, and specialised tools. .
Vintage Cars are Complex
Naturally, any vintage automobile will require some maintenance, but you don’t want to purchase a classic that appears to be in good working order but soon develops a myriad of issues that will be extremely expensive to resolve.
The way a vehicle has been treated during its life has a significant impact on its value in the future. Problems are likely to arise if the maintenance file is thin. I aim to keep the service stamps as close together as possible, especially when it comes to time and mileage.
Investing a little extra and getting a decent car with a lot of miles is OK as long as the maintenance history is clean.
Repairs can be Expensive
A 1963 Ferrari GTO sold for $53 million in 2013 was the most expensive antique automobile ever sold, and it was a record-breaking sale. Don’t be alarmed by the figures; they’re likely out of reach for most individuals.
Classic cars may still be purchased for a reasonable price even if you want to acquire a rare model.
The rarity of a historic automobile affects its price. Only 39 examples of the GTO were built, making it one of the most coveted and costly vintage collectibles ever.
A vintage 1966 Mustang can be had for around $20,000, and there are a slew of other collectable automobiles in the $20,000 to $30,000 price bracket.
Make sure you are aware of the current rates by researching current buyer’s guides – many of which can be found online. When looking for a used automobile, make sure you have up-to-date information and always get the vehicle assessed by a specialist.
The same way you’d have a mechanic check out a used car before you buy it from a private seller, you’ll get the most out of your investment by having a qualified appraiser go over your vintage automobile as well.
Vintage Cars Upkeep is Expensive
Costs Of Owning a Vintage Car
Investing in a Vintage automobile for the long run can be hazardous, just like any other investment. The market might crash at any time, and your car is constantly at risk of being damaged, burned, or stolen.
While the car is being stored, be sure it is insured. Check with your Insurer and you can estimate how much classic vehicle insurance will cost you and then use that information to choose whether or not it’s worthwhile investing in it.
You may also want to investigate long-term care insurance.
It’s critical to have a dry storage space if you want to keep your automobile in good condition. Humidity tents, which keep the car’s metal from corroding, are popular among certain owners.
Rubber and plastic parts should also be kept out of direct sunlight to prevent degradation and devaluation of your investment.
While in storage, engines and other mechanical parts need to be cleaned and readied for mothballing in a certain way. For a fee, professionals can take care of these automobiles.
Restoring a car vs. preserving it is another option to think about. The process of restoring a vintage car can be time consuming and expensive, but it can increase the value of the vehicle. However, your profit may be impacted as a result.
Owners have the option of keeping the “patina” on their cars if they so want (age- and use-related marks and scuffs).
Consider the expense of maintenance.
If you’re considering purchasing a classic automobile to cruise about in, keep in mind that it is just that: a Vintage car. It’s been 15 years since Bailey bought a 1965 Plymouth GTX and has now been able to resell it for 15 times its original price of $6,000.
At first glance, the bargain appears to be a good one, but upon closer inspection, you’ll see that he’s shelled out $14,000 on maintenance alone.
This includes everything from rebuilding the engine and interior to repainting and fixing rust and dents. The “investment” yielded a $5,000 return for him.
Is A $6,000 return on a $20,000 investment, spread over 15 years, will be considered an excellent investment ?, You must ask your accountant about it.
Might need a custom made Insurance plan
Classic automobiles, it turns out, often need additional insurance coverage. To be eligible for classic car insurance, automobiles must fulfil specific requirements according to the stats. The vehicle cannot be utilised for regular errands or commuting after the age restrictions have been met. Rather, it’s restricted to auto shows and other displays. To qualify for this form of insurance, many insurers additionally demand that the car be kept in a secure, enclosed garage or other private building. The good news is that classic vehicle insurance may be a lifesaver when it comes to maintaining the value of a beloved automobile. The studies says that even though the premiums are higher, this form of car insurance should allow you to take a historic car to a specialist. According to the stats, towing coverage is also more extensive. Typical classic car maintenance schedules
Every 10,000 Miles:
- Oil and filter change
- Brake checks
- Fluid checks
- Belt checks
- Tire rotation
Demand far exceeds supply.
Because there are so few of a certain model left, an automobile is considered rare.
People who lusted after those automobiles as children are now able to purchase them because they had the cash on hand.
The best-looking surviving specimens are the ones that fetch the highest prices.
As a result, buyers have to compete with one another for such vehicles, which drives up the price.
Sellers may use previous sales to get an idea of how much they should charge for their automobile before they put it on the market.
If suddenly no one wants that automobile, the seller will have to lower the price in order to sell it.
The amount of supply has remained constant, but demand has declined, resulting in a decrease in the price of the automobile.
Vintage Cars are Hard to drive
Vintage and Classic cars get a bad rap for being difficult to drive, and that’s mostly true if you buy one from the right decade. If you want your vintage automobile to be practical and enjoyable to drive, it must stay up with the times.
A automobile that’s simple to operate will be enjoyable to own and will make commuting more enjoyable. If you choose the incorrect automobile, it will ruin the whole experience of owning a historic car.
Modern running gear includes components and features such as:
- Three point seat-belts
- Min 4 speed Auto or 5 speed manual transmission
- Disk brakes , ABS System and Independent suspension
- Power steering and Radial tires
- Auto choke and Fuel Injection
- Power windows
- Air conditioning and Cruse control, Plus Central locking
It’s hard to imagine, but classic vehicles are a lot like real estate in USA’s largest cities. Even while asking prices are still high, sales aren’t moving as quickly as you might expect.
Collector Car Productions’ autumn auction, held in Toronto in mid-October, reveals both the strengths and weaknesses of the market.
Such a coveted 1956 Ford Sunliner convertible in good driving condition sold for $18,600 after the 10% buyer’s fee. At a high offer of $56,000, a far better maintained Sunliner with several options and modifications such as updated power steering and disc brakes failed to sell.
Read our articles on luxury and exotic Vintag cars…