Collector Car Buff

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

This entry was posted on Wednesday, January 26th, 2005 at 10:28 pm by admin and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.