Buying a Classic Car takes thought, research and some planning. Classic cars are often bought by enthusiasts to drive and have fun. It is not easy to make a profit by buying and selling classic cars.
Make a project plan and do your best to stick to it
You may see an attractive classic car restoration project listed in a newspaper, classic car magazine or on the internet that may only cost a grand or two to buy and could be worth ten times when restored.
Practically speaking, do you have the skills to carry out the restoration of the chassis, engine, interior and exterior? If you need to find a specialist company that will take on some or all of the work, your tenfold purchase price may drop to zero or really little profit. Indeed, in most cases, the cost of restoration combined will exceed the car’s market value. If you plan on keeping the car in your hands and enjoying the drive, then this is perhaps an acceptable price to pay, but don’t expect to sell the car at a profit, especially in today’s “credit crunch” economy.
Before you start searching – do you have enough storage? Do you have enough workspace (note that once peeled off, bits can take up a lot of space). No vintage car likes to be kept out in the open, even with a plastic cover to protect it from rain, frost and snow, and even the worst masochist doesn’t like to work in the open when a storm blows! Lying on a cold concrete garage floor is bad enough, but working outside with all the elements often puts a restoration project in permanent suspension!
Where to find a classic car?
Check your local newspaper, classic car magazines, the internet, or take a stroll down your street. There is no shortage of old cars to buy. But what if you’re looking for something special? Let’s face it, the easiest place to look these days is the internet.
Go to Classic Lots (link below) and you’ll find thousands of classic cars from a rusty Mini to £100 to a Ferrari to £500,000. This excellent site also includes all the classic cars available on Ebay.
After determining the car you want, read between the lines and look at the background of the pictures. You can learn a lot from the way a statement is written as well as from the unsaid.
- I’m always careful when it says “I’m selling for my friend” and yet your friend doesn’t have a contact number so you can have personal contact. With mileage removed from the specs box and description… why?
Ask yourself four questions. Why do I want the car? How much can I really afford? How far do I want to travel to see or collect it? And then the most important question… Do I know enough about these cars to spend thousands of dollars on a really nice piece?
So, buying a classic car at an online auction? Before undertaking such a business and bidding, I recommend that you adopt the following rules!
Note that if you’re the highest bidder (if there’s a fulfilled reserve) and you win the auction, you’re signing a legal contract to buy that vehicle (provided the seller has correctly identified the vehicle).
Don’t wait to pick up the car and leave after inspecting it so you can negotiate the price or walk away. Buyer beware and if possible always see the car in person before placing your bids. If you’re not confident in being able to assess the status of your potential purchase, bring along someone with the skills who can give you an honest opinion on the condition of the vehicle. You might also consider using AA or RAC, both of which provide professional pre-purchase reviews – if the seller seems reluctant to let that review go!
See the car before bidding
If you’ve decided to go and see the car, set up a review and if for some reason you can’t go, let the seller know, it’s a courtesy not to waste his time as you don’t want him to waste your time. .
What to take: means a jack, maybe an axle safety, a flashlight, gloves and at least a list of spots you want to look at.
Take a quick look around when you get there. Whether the vehicle has been kept outside or in the garage, this can give you a good idea of what condition you can expect from the body and/or chassis. Are there any other rotting giants around, maybe the dealer will buy old scraps they can find and try to sell on it, the car you see has little chance of getting a service anytime soon.
Take a walk around the car and look for signs of sagging that could indicate suspension problems or perhaps chassis problems. Do the doors and panels line up correctly, another indication of chassis problems, or perhaps the car has been hit for a while. Was it even a car or was it two once? Are there any repairs? Are they well completed or have repairs been blocked? Are the tires compatible? How are they? Inspect the body or glass fiber carts/panels for rot, look for tension cracks. Check the areas most prone to rot, ie. arches, sills, doors, boot and hood. There are many different types of panels that can be used to repair a car and therefore the quality of repairs can vary.
Check inside the car. Windows, front and back screen, are any of these leaking? Is the headliner damaged or dirty? Lift carpets where you can, check for water and rot, or even holes in the floor? Check the floor and the joints, don’t forget the inside of the boot, the floor and the spare wheel area. So far, etc. if you’re satisfied, try the engine (you checked all over the engine bay, right?). Will the engine start cold? If the engine is already hot, maybe the dealer is trying to hide something, maybe cold start issues, maybe he needed a jump start or tow to get it to start? Listen for any blow, look for smoke. If you see blue smoke that clears quickly during start-up, it may mean that the valves are tired and oil is leaking into the combustion chambers.
Clouds of steam during start-up may indicate a burnt head gasket or even a cracked cylinder head. Remove the radiator cap and look for “goo”. It is cross contamination and is a good indicator of cylinder head problems. Black smoke is probably an overly rich mixture, but it could just as easily be a worn carburetor.
Hit. Well, it could be for a number of reasons, tapping on the top of the engine could be a worn camshaft or a small tip sticking out. Hitting from the bottom can be a great ending that takes its last breath. An expensive repair. A rumbling noise may be a coming off main crankshaft bearing, but it can still be an expensive repair. Check various hydraulic fluids and water levels. Look for any stains around the bay and on the engine. Does the radiator smell of antifreeze? Is there any oil around? Not a good sign. Run the engine for a while, some problems should not occur until the engine warms up. If it’s drivable, take a lap. How does it “feel” on the road, does it “pull” right or left? Is the clutch “spongy” or firm? Does braking throw the car into oncoming traffic? (eek!) Move the steering wheel, is there a click? Does the car wobble in a certain direction when you accelerate?
ok so far so good. Now, the car may be 20 or 30 years old so it won’t have all the original parts. Brake shoes, clutch, spark plugs, tips, etc. if they are original parts, they won’t work so well so far! But seriously, if you’re looking at an older car, does it have any of the original panels? Is the interior original? These points may add value to the vehicle, but the seller may try to represent parts made in China last year as “genuine parts”.
Check the paperwork. Do you have all the necessary documents with you? Check the logbook, it’s a very good place to start and “We just moved and we can’t find it right now, I’ll send it to you..” Never buy a vehicle without a logbook unless you know exactly what you’re doing. It is also helpful to have any old MOT certificates and any receipt is fine too.
Assessing the value of classic cars
How much will be paid? Well, the true value of a classic car will vary significantly. What does it mean to the situation, the brand, the model, the year, and of course, to you? How much would you pay to have that custom car sitting in your car at home?
Be realistic! Just in case you don’t know where to get the rest of the car, and you don’t know what to do if you can get the parts, there can’t be a good enough reason to buy a 1926 Rolls Royce chassis. If you follow the advice above for checking the car, you should have a good idea of whether you’re bidding on a car you can drive, or a car that will even take months on wheels.
If you’ve read the magazines, talked to the owners’ club, and got a good idea of what the car you’re surfing the web is for, then you should keep in mind the price you’ll pay based on the condition of the car.
Most classic car insurance policies include an agreed-upon value based on the car’s market value. At the end of the day, it’s up to you and your budget. If you’re happy with the money you paid for your car, then that’s all that matters.
Basic rules for Internet Auctions.
Determine what you want and have an idea of how much you want to pay. Set a budget
Only you know what you can spend or borrow. Use classic car magazine price guides and real ads to see how much your classic car will cost. Ideally, hold back 10 percent to close any unexpected problems. Calculate operating costs by looking at mpg numbers. Get insurance quotes: Classic cars can be covered by cost-effective limited mileage policies and are often surprisingly inexpensive to insure. Also note that pre-1972 vehicles do not have a road fund license to pay either. Talk to the owners about how much it will cost to run your classic.
Join the owners club. A great source of expertise can be found in the owners’ clubs. Not only will they have some of the best maintained cars, but they’ll also have a huge amount of knowledge on buying and operating your chosen classic. There are often inexpensive insurance and parts plans as well.
Get an anorak! No, really – buy a few books about your chosen classic, read magazines and become a classic car freak. Do your research online and visit Classic Car Shows to talk to owners. You never know too much.
Choose from a range of available examples… and don’t let money burn a hole in your pocket. There are thousands of cars for sale every day, so be patient, if not today, there will be soon.
Check the dealers’ location – are you ready to travel to inspect and then pick up the car if you win the auction? Do you need to consider the cost of collecting your new pride and joy with a car hauling service, or can you rent a trailer and pick it up yourself?
See the seller. Read all feedback in the last three months, negative feedback should ring alarm bells Call him and find out about your dealer. Why is it selling etc. “Why are you selling the car?”, “Do you have any spare parts?”, “How long have you had it?”, “Do you have a bruise?”, “Do you have it?” things like. Does it have a history?” MOTs, receipts, etc. can be helpful for rebuilding. If you know any details about the car you’re asking, then ask any of the questions you think you need to answer. Having the necessary information before you leave can save you a long journey and time .
If a vehicle has an MOT of less than 3 months, ask the dealer if they are willing to send the vehicle in for a new MOT – fixing an MOT failure can be expensive.
If a car is sold as an MOT defect, ask the dealer to list the faults, then call your local garage and ask them to give you a quote for the work that needs to be done. this will give you an idea of the costs associated with going through the vehicle’s MOT. There is no point in bidding on a vehicle that will save you time and money in the long run and that will be costly to get back on the road.
Keep copies of all sent and received emails between you and the seller. These will come in handy if a dispute or disagreement arises over the item’s description or any promise the seller makes to you.
Check if the seller is a private person or a dealer – there are many people who buy scrap from car auctions and then try to make them look like their own cars for a quick profit.
If the seller is a self-proclaimed private seller and willing to lie about their situation, what else are they willing to lie about!
If the vehicle is sold by a private seller, ask how long they have owned the vehicle. Is the logbook registered in his name and home address? If it is a real private sale, the answers to the above questions must be yes! If you answered no to any of the above, walk away.
A few examples of the excuses often given by traders who pretend to be a private seller for not registering the car in their own name are “I bought the car for my wife/husband or family member and they didn’t like it” “high insurance” (people usually always get an insurance quote before buying a car) “wife /husband didn’t like the car” “too big or too fast” or “they failed the driving test” “I bought the car as a blank”