Is your car "collectible?" Are you lusting after a car that you believe is a "Collector Car?" What exactly is a collector car? Perhaps you have struggled with these questions as you are pondering the expenditure of a sizable amount of your savings for that car you have always wanted.

According to the State of Washington, your car qualifies as a "collector vehicle" and can be licensed as such if it is thirty years old or more. The state will issue a license plate for the rear only, (no front plate required), that has a number and the inscription "collector vehicle." This is a permanent plate that does not expire. It’s an ugly looking thing. You can register your car with your own plate as long as it is a Washington plate that is correct for the year of the vehicle. For example this site: www.licenseplates.tv will custom make plates for you the are correct for any state and any year. I had them make up a plate for my 1973 Thunderbird with the number, WDM 937. This is my initials and the last three digits of my birth year. The state licensing department will caution you that the permanent collector plate is to be on a vehicle that is used for shows, club activities and pleasure driving only… not for use on a "daily driver" vehicle. That seems fair. This is a good deal for the car collector, but thirty years is a long long time.

If you consult your insurance agent, you will discover that the different companies have different ideas as to what a "collector car" is. Some require your vehicle to be 25 years old. Others are satisfied if it qualifies as a "special interest" vehicle. What that means is not clear except that they start talking about corvettes and exotic sports cars or custom built cars. In any case the insurer of your collector car will want you to show proof that you have another vehicle properly insured as your "daily driver."

Would my 1993 Lincoln Mark VIII qualify for insurance as a "collector car." Most likely it would not as I would need to convince them that I was not planing to drive it daily. But, to me it is as collectible as any car I could hope to find. Would my 1986 Fiero GT be insurable as a collector vehicle? What if I have a "youthful driver" in the family, could we still insure it as a collector car? Most likely not.

If you own a collection of automobiles you might want to do what my brother and I do with our collection of some thirty cars. Go get yourself insured with a "broad form auto liability" policy. Then you will have proof of insurance regardless of what you happen to be driving. The insurance is on you, not the car. For casualty loss coverage we are self insured. Why do you think that those special “Collector Car Insurance” plans are so inexpensive? it is because they have very low claims to cover.

Since getting the broad form liability policy several years ago I have been involved in one collision. A monster size truck ran into my car while I was waiting at a red light. The other driver was ticketed and his insurance company paid for the damage to my vehicle.

Strangely enough, you may cross trails with people who are deeply involved in the collector car hobby who have very strong opinions as to what is or is not "collectible." I had a beautiful 1977 Thunderbird with only 36K miles on the odometer in a collector car auction. The bidding did not meet my reserve and the car was a no-sale. Before moving on the auctioneer questioned whether my Thunderbird was sufficiently "collectible." Later I sold the car to a car collector in New Mexico for substantially more money. The new owner has reported to me that he recently picked up a trophy in a car show with the car.

If you check out the NADA web site or the "Old Cars Price Guide," and you will discover inconsistencies that are difficult to explain. For example the NADA site skips over the 1986 to 1991 Cadillacs and continues with the 1992 model. Apparently they think that my 1987 Eldorado and my 1990 Eldorado are not worthy of being "collectible." I strongly disagree. The Old Cars Price Guide shows ridiculously low numbers for the Pontiac Fiero. They are not even close to the prices that a 1986 to 1988 Fiero GT will bring on the market.

You will find that even major players in the old car hobby such as Hemmings Motor News may "speak with forked tongue." I am referring here to the March 2004 Special Collectors Edition of Hemmings. On page 114 they state: "Buick made a splash with the two-seat Reatta, but it was (1) ugly, (2) had a horrid interior and (3) conceptually, was a bad joke. It was gone after ‘91." Here is someone who claims authority on the subject of collector cars speaking like a complete crack-pot. I have owned two Buick Reattas and I can assure you that it is Hemmings Motor News that is the bad joke here. The only problem with the Buick Reatta was that it was priced out of the market. Not many people we willing to pay 20% more than a Riveria for a two seat sporty coupe.

Similarly, on page 136 they write: "The rush toward retro raced ahead in 2002, just about everywhere you looked: The Ford GT-40, BMW’s new Mini, and the Ford Thunderbird, although the latter quickly became an overpriced flop." What is this crackpot thinking? The 2002 Thunderbird is an overpriced flop? Nonsense! Ford stated up front that they had limited production and could only build 25,000 new T-birds per year. They have built and sold more new Thunderbirds than Corvette convertibles. More than the original "baby-birds" in 1955-56 and 57. If you conclude that the new Thunderbird is a flop, you would have to conclude also that the original ‘55 - ‘57 thunderbird was a flop. That of course is ridiculous.

We own a 2003 Thunderbird. It was purchased as a collector car. Although it is now more than two years since we took delivery, it only has a thousand miles on it. Yes, it is a collector car.

We love it!

So, what defines a "collector car?" The answer is similar to the answer to the question, "What is art?" The answer is that a collector car is defined by you. If you declare that your car is a "collector car" and if your car collection consists of only one car. Then, fine… you are correct. Enjoy.

WDM

I am a chronic car collector. Some of my friends and relatives think that I am “over the top.” They have pointed out to me that there is a fine line between enthusiasm and obsessive-compulsive behavior, (which is diagnosable and treatable with new drugs, I understand).

Perhaps I am not quite as unbalanced as some think. A good friend of mine who is quite knowledgeable about collector cars tells me that he put the bulk of his retirement money into high interest paying debentures from Metropolitan Securities. Unfortunately, they have recently gone into bankruptcy and he will be lucky to recover ten cents on the dollar.

Between my brother and myself, we own over thirty collectible cars. We are not buying for speculation to sell. But, we are not in it to lose our shirt either. Every car that we have purchased is one that we would like to keep, after we have put it in show condition. If someone wants to buy one of our cars, we will most likely sell, but only at a premium price, because we are not in it for the money, but for our own pleasure and pride of ownership. We recommend that you too, buy something that you really want to keep. Then, if you can sell it at a substantial increase… fine! But if not, you’re still happy. It’s really quite simple. All that you need to do is buy right a vehicle that is sure to increase in value. Of course, what you buy will determine if it will be worth substantially more as time passes.

So, here is a plan that is fail safe:

1. Only buy a convertible, red in color, made by a major car manufacturer such as Ford, General Motors or Chrysler.
2. Then only buy it if it shows super low mileage, (well less than 10,000 miles per year if it is newer, much less if it is older), or if someone else has already spent a gob of money making it perfect.

As you move into other models, colors and manufacturers, you increase your risk of not finding a buyer that wants it more than you do. If you make it your business to know about how popular various models are, and how condition impacts market value, you will feel more comfortable assuming the risk that you take in buying any used vehicle.

Once you have found the car that meets the above conditions, it is most important that you show no emotional attachment to it. Feign an air of only mild interest. Be sure to have on hand a roll of cash, hopefully hundred-dollar bills. Show empathy with the seller regarding his or her reason for wanting to sell. Offer to help them out with a cash offer that is well below what you think the car would bring wholesale. If the seller balks at your offer, let them bump you up to wholesale, but not higher.

There is a major exception to the above paragraph.

That is, if you really want the car for yourself and you really don’t give a hoot what it’s future market value may be. If this is the case you will most likely strike a deal at whatever the seller requires from you to sell. The downside of course is that you may have to wait for a very long time for the market to catch up with the value of the car to you. But, if you are sure of yourself…. do it. We own one car that we are into several thousand dollars over the highest current retail value. But, we do not plan to ever sell… so we are happy, and the seller was willing to part with his treasured car.

Once you have bought the car you are going to have to pay sales tax and title transfer, and possibly emissions testing fees and license tab fees. If you buy at an auction of course there will be a buyer’s fee for the Auction Company also. These costs could add up to 20% of the wholesale value of the car, so be sure to include these costs when you are determining your maximum offer. If you are out of your home area be sure to include transport costs to get your new purchase home.

Know up front that once you get your new purchase home, even if it looks fantastic and appears to be the buy of the century, you need to plan on spending a minimum of one thousand dollars on your new purchase. Something is bound to need attention. Don’t trust tires that are 25 years old. Replace them. Most likely you will need a new battery, belts, radiator flush, etc. From experience I have found that about a thousand dollars is right. I have had cars that cost much less than that to detail and shape up. But, I have also seen bills that came closer to three or four thousand dollars, if you discover that something more serious needs to be dealt with.

If you plan to sell the car for more than you have into it, you will need to correct any flaws or problems that you find. For example, any cracked glass will be replaced. Any wear showing on leather seats or steering wheel will be repaired. Any finish work on the body such as repairing minor body damage or replacing striping that has been buffed off, should be done only by the best body shop that you can find. Do not accept less than the best quality work available. The best detail shops now have equipment and materials that can make a so-so finish look fantastically beautiful. This can cost $300 to make the finish on your car look better than new. Pay their price and do it right.

Let the world know through car shows, etc. that your car can be purchased, but only at a premium price. Sooner or later, someone is going to fall hopelessly in love with it and demand that you take his or her money, no matter how high the price. If this happens, put the money into something that you like even more. If it does not happen, that’s OK too, as you will know that your net worth in your portfolio of collector cars is increasing daily with the going market rates for comparable vehicles.

WDM