Is it ever an Investment?

[John Byrd]

I have had quite a few cars, trucks and bikes. The term good investment has come into play a few times, some yes, some not so much (new vehicles trade/sell value), but lately I have been going through and scanning and arranging all the pictures I have of our vehicles back to the first one in 1965, and I can tell you, in my case, with the smiles and memories, everyone has been a good investment. I still can't believe I have been lucky enough to own some of them, surprised that I would ever have considered owning some of them, but every vehicle we've had has had a positive side. The very worst thing we ever owned was an 89 model mid sized truck, but besides all the trouble, it was a great looking truck, and we traded it in on one that we had not previously considered that turned out to be as good of a vehicle as a person could get ! So, I guess I would say the investment is how you consider everything about it, not just the money. I actually would do it all again just about the same way. Of course there are still some vehicles I really "need" that we haven't had yet, but I'm not losing hope, ha ! Signed, Happy John

[keiser31]

Got a Model A truck once and the first thing I told my wife was, "Man, I could make a killing on this truck". It was something that I sort of regret saying. I knew it was worth at least twice what I paid the guy for it, but never intended on selling it. It was my first Model A after having MoPars forever and I really put off selling it until I absolutely HAD to. I had to sell it to make the last two house payments, so it was a good "investment". There is a good side and a bad side to all of these stories for me because I always purchase to keep. Priorities dictate.

[Restorer32]

Same problem I have. I bought my '55 Jag in 1968 and paid $237.50 for it. Haven't touched it since 1969. If I sold it I would make a lovely profit but I couldn't bear to part with it. It's one of the few remaining connections with my youth. So as a monetary investment it's basically worthless since I know I'll never part with it in this lifetime unless the wolf is really at the door.

[JZRIV]

I have been enjoying the Forum Thread above and started thinking (yeah, I know it's dangerous to think, on my part anyway) about the comment that David made yesterday that a certain restorable car was out of his price range.

So, I'm wondering if in today's world, is a restorable vehicle worth buying as an investment, if you have the extra money?

Wayne

I can honestly say if I didn't think I could, or never have come out right side up on a restoration I wouldn't do it. I love restoring cars as a hobby but I have plenty of other interests I could lose money on that don't take large amounts of garage space and tools. So my opinion is classic cars or motorcycles can be a good investment but not without having the ducks in a tidy row prior to buying.

Here are some important bullet points to increase chances of coming out ahead relative to buying a resto project.

• The buyer must be skilled enough to do alot of the labor intensive work themselves. If not there is virtually no chance of a capital gain after ther dust settles on the resto and all costs are added up. This is the primary reason I have come out in the black on several projects. I don't count my labor because it is a hobby.
  
• You should be experienced with the model you are buying, be thorough in the pre-purchase inspection, know what the parts availability is as well as cost. This helps reduce the number of costly surprises during project.
  
• Know the going shop rates for engine machining work, plating, and body/paint.
  
• Be very selective on the make and model to purchase and what available factory options or color combos may ad significant market value. Just because a model is your personal favorite doesn't mean it will be to the masses when it comes time to sell so choose wisely. Be a good internet self study on whats hot and or has been consistently climbing in the classic car market trends.
  
• Be able to complete the restoration within 3 years after the resto is started. The longer its apart the more likely something more important will get in the way of completion.
  
• Then after all that you have to buy the project preferrably below the current market value so you have an edge before any work is started.
  
• If the project is successful, when you sell hopefully you can do a cash transaction and hide the proceeds in a mason jar to avoid a potential captial gains or income tax.
  
  • 
    

Edited December 10, 2012 by JZRIV
poor grammer (see edit history)

[Marty Roth]

Years back I bought and sold a few collectable cars and had modest profit, but never did my trading with the intention of being a dealer.

I buy cars that I like, and that I want to keep and to tour for many years to come.I

maintain cars which I believe that my son, daughter, and grandson will want to keep when I'm no longer a restoration candidate myself (now on my 4th pacemaker, but I digress....).

I believe that my cars will hold, and increase their value, certainly better than my 401K or other investments, but don't plan to divest immediately -- I'm having too much fun with them. We show, Tour, and Cruise with our cars just about every week of the year. You can't do that with a 401K !

Edited December 10, 2012 by Marty Roth
typo (see edit history)

[Restorer32]

Some times, but only some times, you can profit by buying a disassembled car, putting it back together, doing just the major work like woodwork or body work , getting it running and mostly complete and selling it as a project. However, you have to really know the model and be able to ascertain that the crucial parts are all there before you buy. Totally disassembled cars can often be bought very cheaply.

[trimacar]

True, and sometimes you can just bide your time and the car will become available at your price. That happened to me with an early car, I didn't need it, but I could use some parts that were included, on one of my cars. The car was "assembled to market" and was missing a major body piece, but I had the pattern for that piece. I talked to the seller, he was firm at X price, and in fact made a deal with someone around that figure. The deal fell through, he called me, I offered about 60% of X price, delivered to my door (the car was 400 miles away). He was ready, and took the deal.

I got the car, put it together as a "car" as mentioned, with a new "piece", took the parts I wanted from it, and still sold it at a profit.

So, it can happen, but you need to know the car you're buying, and know the market.

[Restorer32]

About 20 years ago I bought the back half of a '33 Packard convertible body hoping someday a chassis with the cowl and doors would materialize. A few years ago lo and behold exactly that happened and I bought it on E-Bay. In the meantime I had collected up the parts I assumed would be missing and since I have patterns for all the wood it will soon be a restorable car again which theoretically I can sell at a modest profit. I enjoy the search for parts so even if I just break even it's been fun and someone will get a desireable car to restore.

[trimacar]

Great stories...now, if someone would come up with the body for my 1910 Hudson fore-door roadster, I'd be able to tell another one! It has fenders, hood, cast aluminum running boards and floor boards, and I'm convinced it was a complete car in Slidell, Louisiana, in the 1960's and 1970's. The documentation that I have states that it was traded for another car, with no mention of pieces missing. I'm convinced that body is out there somewhere!!