REPORT ON THE CLASSIC CAR MARKET - BUYING A "PIG IN A POKE"?

THE BOOMING COLLECTOR CAR MARKET IS CREATING DEMAND FOR "AFFORDABLE CLASSICS"



According to the most recently available information, the big money being poured into very rare cars has created a booming middle-market for more affordable Classics. 

The questions are: when your days as the caretaker of a Classic vehicle ends, will you reap the benefits and if you become a buyer of a Classic car, will you be buying what you expect?


Based on the opinions of experts, the answer is "definitely maybe". You could be lucky enough to be in the right place at the right time. But with most owners remaining unmoved to document the known history of their Classic, or buyers demanding it, unless they both change their process, chances are diminishing. 


WHY?

With the upper end of the market now out of reach of most buyers, the allure of Classic car ownership will turn towards a more affordable version. If the price of an "affordable classic" continues to climb and history repeats itself, buyers will seek, be more interested in and pay more for Classics with a recorded background.

"BOOK VALUE" IS MEANINGLESS

In many cases, the value of a Classic is based on what someone will pay for it, regardless of what the price guides state or cost to restore. Other times, emotions steer negotiations to the delight of the seller. But as with almost any commodity, when the cost to acquire reaches a certain tipping point, proof becomes the deciding factor. Without proof, there is a considerable risk and the only way to sell "a pig in a poke" is to lower the risk to a point it is equal to the price.

DEFINITIONS OF CONDITION - RESULTS MAY VARY

When descriptions are left to the seller and for interpretation by the buyer, results may vary. One person's description of "fully restored" is another person's "we replaced what you can see".  Even worse is when the vehicle's condition is misrepresented.  Yet the very same Classic with a description of the work performed, copies of the receipts, and accompanying pictures leaves little to guesswork. Expectations are not likely to exceed descriptions or valuation.

THE AUCTION IS A BAROMETER

If you've ever been to a Classic car auction or watched one on television, you've witnessed when emotions run up the price and when the risk exceeds bidding on "a pig in a poke". Bidding comes to an abrupt halt. You may have also witnessed when the car and the proof are unquestioned. The level of confidence is exemplary and the only thing stopping a bidder is the limit of their checkbook.

NOT THE PAWN SHOP

As a Classic car owner or enthusiast, there's a good chance you've seen the shows where people bring a Classic to a place that buys them. If you have, you know the "offer" is always "half-off"...except for the times they are presented with the right proof. 

CREATE PROOF - THE REGISTERED CLASSIC

Creating a Registered Classic is an easy way to prevent selling or buying "a pig in a poke". It takes a little time and some effort, but you can start today.

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