The Value of Cars

Classic, vintage and antique cars slot into the niche investment category of appreciating moveable assets, their rising values grow your wealth. Now in this post, we're trying to figure out how cars can gain value.

A vehicle gets into the classic category when it turns 20 years old and not older than 40 years. It's mostly unmodified, with technical or historic interest, but fun to drive and appealing. Those are some of the things which makes a classic car.

It's found to be difficult to determine the value of a classic car as there are factors to be considered, like...

1. Condition

The condition of the car can determine the value of a classic, even if the vehicle it's one of the rarest in the market. Rust and major restoration can lower the value of a classic. Car collectors buy cars not to drive them, but some want to ride them once in a while. A well maintained vehicle and restoration it's worth doing as it adds value.

2. Rarity

Mass production of the same vehicle model, dents it's chance of it being a classic. Vehicles which are most difficult to find, get to be the most valuable. In choosing a vehicle, it better be from an assembly line of a limited number of models or only a few are still available when they hit that classic age group.

Rumour has it that Mini Cooper Clubman will no longer be available in "South Africa". Would you be surprised if the last 10 Mini Cooper Clubman to be made available to the South African market cost more?

3. Popularity

Here's the confusing part then, not every vintage car has to be rare. The car brands, do we drive to go from point A to point B or do we invest. A famous car brand can create some real value for your vehicle. The popularity of a model can be about loyalty and affection. If it's not rare, let it be popular or from a famous brand.

And if the first words out of our mouths when we see your car are “Whoa, nice!” Generally speaking, you’ve got something worth hanging onto there. - Hagerty

4. Year

The older it gets and still in a good condition, the vehicle becomes more valuable. Newer models can be more valuable, depending on years in between production, making it more valuable to the eyes of collectors. Determine the value of a classic car compared to the preceding and succeeding models. What do you consider when buying a new car?

5. Restoration Quality

If a vintage car it's restored with original parts and correctly, improving its look and performance, it can increase its value. The car must maintain its look and feel. Restoration can be expensive and will require a budget, meaning that it could be better to continuously maintain the car.

6. Mileage

The condition of a car and mileage go together. Vehicles with more mileage are found to be in bad condition. Classic cars lose value because of more mileage, but the condition it's more significant.

7. Original Parts

The most valued cars, are cars which still have car parts you bought them with or that have car parts from the same era. That's rare, as there are rare classic cars with the same car parts the car was bought with, mostly are restored with new parts. If you're restoring, use New Old Parts, which are parts manufactured during that era but were never used.

8. Market Demand

The market also influences the value of a vehicle. It makes it difficult to pinpoint the classic car market or the demand for your model/vehicle. So, always be informed about the classic cars market.

9. Authenticity

Always have guaranteed proof of the vehicle's authentication. Authentication certificate, and that might increase the value of your vehicle. Search for authentication programs.

10. Upgrades

It's better to keep original parts, but there are circumstances/instances whereby you can improve a classic car's value. Improvements should be simple and shouldn't tamper with the vehicle's authenticity. Like new tires, fresh paint, new air conditioning, brakes...

According to Kevin Derrick, CEO of Creative Rides Classic and Collectables Auctions. The market has gone into overdrive this year with several collector cars jumping in value by more than 30%. The number of collectors has also risen dramatically in recent years.

When it comes to a classic car, those are some of the things which should be considered. But what about a car that isn't yet a classic?

Now, maintenance.

The best maintenance is to care for it everyday, and don't wait in order to have things repaired. Things like the rubber around the windows, doors and trunk may be seriously cracked and faded, which can ruin the car’s entire appearance.

A well looked after car requires touchups in order for it to look appealing. That's not limited to waxing, shampooing or polishing, but also a clean engine.

There's a maintenance schedule which can be found in the back of the owner's manual, and that should be followed. Make sure that the vehicle is always in good mechanical condition, and consult to check whether it's costs are worth the trade-in value.

A logbook

A documented service history gets some used car buyers to be willing to pay more for the assurance. Keep receipts even for minor maintenance work.

Shelter

Direct sunlight and weather like acid rain can damage the exterior. Bird droppings can leave marks and falling branches can cause scratches, that's just for cars that are parked under trees.

A clean Car

You need a car wash for a clean interior and exterior. Don't leave trash in a car, don't have animals in a car or smoke in the car; it's hard to get rid of the smell.

Accidents

You don't want a buyer to spot some body work, minimise the dents and scratches. Incase it's a requirement, use a repair shop which uses the original manufacturer's parts and keep all the receipts.

Your current car up for sale?

When fuel prices and the demand for used cars go up, that's not the right time to sell your car. Restore damaged components/parts and again talk to a mechanic to check whether it's costs are worth the trade-in value. Things like tires, cracked windshield, lights, dents and scratches should be fixed before reselling.

Again we're still on reselling your car. Clean your car and don't use your household cleaners in your car except the glass cleaner on your Windows. Truth be told, I didn't make this up. They are involving us again.. lights restoration and if your car it's worth the amount, hire professionals to detail your car, your sponge won't work.

Just like you're advised to keep your logbook or use manufacturer's original parts, wouldn't it be best to always keep your car clean? Wax/Polish it. If you barely remember what the colour of your car looked like, check the interior of your door frame.

When it comes to selling a car, here are some of the valuation links that should help. Check with as many car dealerships as possible. Know how much your car it's worth.

https://www.webuycars.co.za/sell-my-car?campaignid=2023238128&adgroupid=127498896133&adid=549061949211&gclid=Cj0KCQjw6cKiBhD5ARIsAKXUdyZY_T4LBvMKxxUAIYsNfUjl-36sjNHIq5NLj8aNh9x8R-4zS8e4ws4aAs_REALw_wcB free car evaluation kit.

https://book-value.co.za/

https://www.transunion.co.za/product/auto-vehicle-valuations

https://www.sanlamreality.co.za/wealth-sense/vehicle-value-calculator/

https://www.mccarthy.co.za/sell-my-car?utm_source=AdWords&utm_medium=Search&utm_campaign=20001141276&utm_content=152097819510&utm_term=vehicle%20valuation&gclid=Cj0KCQjw6cKiBhD5ARIsAKXUdybwNNOv_bQ5-YyC7t0zX96v4PlthIiRJQSM3cNi_lmMByzb_bjYKEUaAk-dEALw_wcB

https://www.autotrader.co.za/value-my-car?gclid=Cj0KCQjw6cKiBhD5ARIsAKXUdybW4anWRTrkeD_QwWDGS3J_Sg927H42XT72FNLDt3siWalN4avtCr8aAl2GEALw_wcB

Now, here we find out what the current car has in common with the vintage/classic. Buy a new car with a good resale value. A car's brand plays a major role and it's based on many factors, including desirability and reliability. Research the resale history of the model you're interested in.

Apparently a well researched car can retain its resale value after 3 years. Here are some of the suggestions: Toyota, Honda, Subaru, Hyundai and Mazda might retain their resale value better. And in the luxury market share, Lexus, Acura, Mercedes and Audi are the makes that usually have better trade-in value. And it's been found that the value of luxurious cars tends to decrease less with time.

Live warranty can boost a car's value, with a factory value being more valuable than a dealership's extended warranty. Warranties can cover years or mileages, but you can buy a car with more years in warranty.

Things like transmission, let's just say do research and find out what's more in demand. Four wheel drive vs rear wheel drive; where you're going to sell it, that environment might be ideal for a four wheel drive.

In choosing a car colour, go for plain colours like black, white, grey and metallic in order for the resale value to not be affected by ageing of the colour. And never be tempted to customise your car if you plan to sell it.

We've known cars as items that really lose value overtime, but we were never really been informed that actually cars can regain their resale value with just maintenance, keeping a clean car and chosing the right car. While on that we find that actually a vehicle can possibly actually increase in value once it reaches its classic car age.

I was so shocked to find that sometimes we are sold cars but, it seems like we really don't know what we're driving.