How to Buy A Classic Car To Restore And Sell

If you are in the market to buy and restore a classic car for a profit, consider doing most, if not all, of the restoration yourself. When you send the car out to have work done, you may not have any profit left at all, so being mechanically inclined and detail oriented could enhance your return on investment.

Difficulty: Easy

Instructions

Things You'll Need:

• Antique Auto Magazines listing cars for sale
• Parts distributor catalogs or contacts
• Latest Collector Car Price Guide Book

1. 

   Do your research by going to car shows, browsing the Internet, joining classic car club forums on line and looking through auto trader magazines for listings of classics for sale. The Collector Car Price Guide can help you to determine retail values depending on condition of the car. Get a feel for the market values of various cars, and then narrow your search to specific makes, models and years. Concentrate on cars that carry a large resale value once restored.

2. Determine if you want to perform only minor repairs and sprucing or if you want to invest time in a "heap," which initially will cost you much less. You could opt for something in between. If you want to turn the car over quickly, stay away from the heap that needs a complete restoration.

3. Through the car club forums, uncover the common issues that effect the car your considering and calculate the cost of overcoming them. Also learn the value of the car, before and after restoration, and determine the availability of parts.

4. Check with parts dealers to see if you can get after-market parts, such as rubber trim and moldings, which may be impossible to find in good condition for a 40-year old car from a junkyard. Interior and door panels may be hard to replace. The cost to have these items custom made could be very extensive. You can usually get a free catalog from companies who offer classic car parts.

5. By now you should know what to expect to pay for the cars remaining on your list and what issues you will face during the restoration. Now you are ready to start shopping and survey cars to see if they fit your criteria. Let's say one car cost $5,000 and the new parts needed, including a paint job, will cost you another $5,000. The maximum retail value for the car after restoration is $20,000, and it should take you 500 hours to do the work. The $10,000 profit means that you must work fo $20 per hour. This what you "pay" yourself for your time. However, a car that costs more to buy and fix, may return a larger profit for the same number of hours. Factor that when you determine which car represents the better buy.

6. When your car is complete, take it to car shows to attract buyers. Advertise on the Internet with photos, and auto trade newspapers. Keep receipts for all the new parts and document the work that has been done, whether it was done by yourself or a professional.

Tips & Warnings

• Consider the space the car will be taking during the restoration process. If you must pay rent for storage space, factor that into the cost.
• Always look at the prospect car in the "daylight". You really want to get a good look at everything.
• Check the wiring out, it's age and whether or not a new harness may be needed.
• Ask to see any receipts or documentation on what work has already been done.
• Allow extra time when you calculate your projected man hours to complete the car. (You can easily underestimate your time by one third or even taking twice as long as you originally predict, depending on what you run into).
• Almost without having to mention, the engine and transmission are major concerns. Has the engine or trans been rebuilt? Are they good as is or maybe you will need to rebuild or replace?
• Metal work. If there is a lot of rust on the car, consider the time and energy to remove the rust and replace with new metal. Tap around the car with your knuckles checking for bondo body filler.
• Time spent in advance investigating before you buy, will be time well spent.
• Above all, enjoy yourself!
• Always beware of frame damage due to rot! Get under the car with a small hammer, pick and lighting checking out the entire frame for rusted or rotted areas. A small area of rust or hole may be repaired with new metal slag being welded in, but extensive rot would mean removing the frame from the car for repair or replacement, which is a major venture, and may blow out your budget.

[MidniteWriter]

on 1/5/2008 This is very thorough and yes, you should do your homework. Before you take the plunge, find out if its even worth your time and effort. Thanks!