If you’ve got your eye on an E-Type Jag, or you see yourself as a James Bond (or Janette Bond) behind the wheel of an Aston Martin DB5, then this article is for you. We get that you probably fell in love with the nostalgia of home-grown heroes such as the Holden Monaro.
Whichever classic car sets your pulse racing, it really pays off to get a true picture of the costs involved. Owning a small slice of motoring history can be quite fun, but it can also drive a painful and serious hole in your bank account.
You probably need to assess exactly how much you afford to pay for it, and how much work needs to be done to restore its original look or even maintain it. On top of that, you also need to consider how much you can insure it for. That’s how you’ll know whether it’s worth it or not to keep it. But here are a couple of tips or information that might shed some light on the matter:
from Shutterstock
Initial purchase
The classic car market somehow skyrocketed during the pandemic, especially since many Americans had to scrap their plans for international travel and focus more on their hobbies that can be easily enjoyed at home.
That’s probably why many car lovers decided to pay top dollars for classics. A sale by auction house Grays back in 2021 notched up some astounding prices, which also included $183,000 for a 1970 Ford Falcon XW GT. If you’re more into a muscle car, then a 1978 Ford XC Cobra sold under the staggering price of $194,000.
Well, it turns out that cars don’t need to be in mint condition to score big with buyers. Earlier in 2021, a rust-ravaged 1958 Porsche 356A sold at auction by Shannons for only $230,000. Of course, that doesn’t mean that all classic cars require six-figure sums.
In fact, plenty sell for considerably less. However, if you somehow struggle to muster your savings to own a slice of motoring nostalgia, a personal loan might help you get behind the wheel of a head-turning classic.
Pay the right price
Even if you’re quite excited about getting behind the wheel of a classic, before you rush to write out the cheque, make sure you are paying for a pristine vehicle, not a beater. Prices should be established depending on age, condition, scarcity, and original features.
Sometimes the excitement can easily convince us to hand over more than it’s actually worth. But don’t worry, because it really happens to the best of us. If you are able to check the average value online, it’s always a good idea to compare other similar models or asking prices.
We would also recommend a pre-purchase inspection from someone who knows all about the classic model you’ve got your eyes on. To find that person, we’d advise you to check your local car club or even discuss it with a car enthusiast friend. The cost will also depend on who you know, what they know, and how long it would take them to complete the inspection.
Don’t buy just for the sake of investment
If you’re an avid car lover or collector, then follow your passion and buy for the love of the car rather than the investment. Indeed, it’s nice to buy the classics to on-sell for a bit of profit, but you also need to make sure you will be able to get your money back.
So, if you decide to buy a 6-figure classic car and you want to make some money off it, make sure you are able to find a buyer who can afford to offer more than you paid for it. Otherwise, you could be left with a significant hole in your wallet and a car that doesn’t quite tickle your fancy. On the same note, if your personal slice of history isn’t quite aged to perfection, hang on to it, as it might bring you some profit in the future.
Store your new ride
In all honesty, you can’t just park your new car in the driveway. After all, it’s not exactly a normal car, because it’s more fragile and it requires extra care. Moreover, if it’s not the type of model you want to drive around the streets, you might have to consider having a safe space to store and preserve it. If that’s a bit unrealistic for your area, you might need to find a storage facility which offers some or all of the following:
- security – CCTV or alarm systems
- Air conditioning and humidity control
- Battery trickle charges
- Tyre checks
- Monthly engine runs
- Accessibility
Even if it might cost you a couple of extra bucks, it will bring you:
- safety and security for your antique ride
- protection from extreme temperatures and natural elements
- protection from other elements or vehicles
- lower risk of theft and vandalism
- lower insurance costs
Classic car insurance
Insurance is definitely a must-have for any car, and an increasing number of specialist insurance companies but also motoring organizations like the NRMA offer all kinds of classic car covers. A simple Google search can easily put you in touch with an insurer.
However, you might need to do some homework first. Unlike modern vehicles, classic cars have survived long past the point at which they have depreciated to almost zero value. Quite the opposite, in fact: many will have risen in value, especially those that have been completely restored.
And with that being the case, it can be quite hard to pinpoint a classic car’s market value, something that would otherwise be a breeze with modern cars.
Car thieves love classic cars
The current boom in classic cars hasn’t gone fully unnoticed by thieves, and without any hi-tech theft protection, these babies can be an easy target for crooks and thieves. Experts advise changing a car’s locks after you buy it and prioritize installing anti-theft devices such as an immobilizer, alarm, and GPS tracker to improve the car’s security.
If you can store it in a locked garage at home rather than simply leave it on the street, it’s even better.
from Shutterstock
Regular maintenance
All cars require regular maintenance, but the classics might need some extra TLC. Nowaday’s electronic-rich modern engines generally require less frequent tune-ups, especially in comparison to their older counterparts. So, unless you actually plan to do a lot of your own mechanical work, just think about budgeting for additional maintenance costs.
If you really want to show your classic some good old love, it’s worth getting in touch with a specialist mechanic who specializes in older cars. Or, you can join a local car club to find out which mechanics in your area are qualified to work with a rare classic.
Spare parts
A strong incentive to hitch up with a specialist mechanic is their own knowledge of where to source parts. It’s easy to source spares for modern cars. Not so for older cars. You can even find yourself engaging in a lengthy treasure hunt, and in most cases, paying more, especially for authentic parts. If you ever need to order parts from overseas, you also need to factor in the possibility of paying import tax in addition to shipping.
If you found this article useful, we also recommend checking: 10 Most Fuel-Efficient Cars for 2024
