A classic car is an investment in its own right. However, the value of the car increases only when you can restore and/or maintain the car in its original state. With any type of restoration, however classic car ownership is a great hobby for many enthusiasts. Regardless of the reason for purchase or ownership, restoring classic cars is a challenging task and requires careful consideration of many factors.
1. Restoration takes time: Restoration of priceless collector cars takes time, usually many months and sometimes years. It may take many months of scouring classic car exhibitions or the latest dealer catalogs to find an authentic accessory that needs replacement. Rushing a restoration may become counterproductive, as hasty work or inauthentic accessories will degrade the value of the car.
2. Restoration is costly: The exact cost of restoration depends on the make, model and condition of the vehicle. Restoring a 1970 Buick Skylark Coupe in average condition, for instance, now costs about $50,000. Restoring a 1967 Shelby GT350, on the other hand, may cost $150,000. Factor in the worst-case scenario for what the restoration may entail and have a budget in hand before starting the restoration work.
3. Restoration requires diligence: Restoration of classic cars is delicate work. It often requires dismantling the car, eliminating the rust from all the pieces, and putting the pieces back again. Tracking down and replacing the missing parts, getting that right coat of paint, and ensuring originality can be significant challenges in the overall process. Neglecting even a minor aspect of the restoration can result in a big drop in the final value of the car.
4. Draw up a Contract: When entrusting the car to a restoration shop, it is a good idea to enter into a contract that specifies the nature of the restoration, the work schedule and the quality of the work to be done. The contract alone does not guarantee completion of the work at the specified time or cost, as the restoration shop will not know the extent of work required until they disassemble the car. Rather, the contract serves as a good reference point, and helps to match the expectation of the customer and the restoration shop.
5. Purchase Insurance: Taking out a comprehensive classic car insurance policy on your car helps to keep the vehicle safe from extraneous risks. Classic Auto Insurance has some excellent classic car insurance options that reimburse the costly damages that accrue when the classic car is subjected to an inevitable scratch, accident or natural disaster. Don’t put all your money into a restoration without an insurance policy to back you up. Classic Auto Insurance’s standard insurance plans include agreed value, roadside assistance and next term mileage rollover. For more info and a free classic collector car insurance quote, call 888-901-1338.
About the Author
Drew Yagodnik is Vice President of Classic Automobile Insurance Agency, Inc. Classic Automobile Insurance Agency has been protecting collector, classic and exotics since 1992.