IMO body condition is the only thing I concern myself with when buying a classic. Mechanical problems are cheap and easy to repair by comparison. When I bought my '67 fastback 25 year ago I paid $4,000 for a car that was not in great condition as far as the engine, interior, etc. went, but it had a solid body. That was a lot of money at the time, and these cars were not worth near what they are today. Fully restored top of the market for a '67 fastback V8, nothing special (not a GT, K-code, big block, etc.) was about $13,000. Without any major body work (replaced the valances, and floors, stripped it and had it sprayed), and doing all the other work myself I easily exceeded that figure in my restoration efforts. The only way I ended up right side up in the car was by keeping it over 20 years as the market increased. Of course, with all the changes I've made of late I'm probably in the same boat again or close to it.
My point on the money side of it is that despite what you see on TV this isn't a money making hobby. Most guys are going to be upside down in their car financially when its done. We do it because we love the hobby. It doesn't make sense financially.
As to body condition, the worse the car is the more its going to cost to resurrect it. All the tin is available now, including complete bodies for about $15,000. If you can't do the metal work yourself its an even worse scenario, because you are looking at auto body labor rates of $50/hr. minimum. You are also looking at a car that isn't going to be a priority for 95% of the shops out there. Their businesses thrive on quick turnaround insurance claims. A classic restoration isn't that. This is how cars end up in what's often referred to as "autobody hell" for years.
If you live in an area where cars are prone to rust you are better off traveling to buy the car to an area where cars don't rust. Places like AZ, CA, etc. don't get road salt in the winter and its amazing how well preserved 50 year old cars are in those states. There's initial cash outlay for the trip, shipping, etc., but its going to pale in comparison to trying to bring a rust belt car back to the same level. I will never buy a classic locally again for this reason.
In reference to your current find, $11,000 for a car with major rust? Don't walk away; run. Yes, the climate is still such that these cars are bringing what years ago I would have considered crazy money, but consider a couple factors. First, look at what everything costs today vs. 20 years ago. Gas, food, etc. is all 2-3 times more expensive. Its inflation; money just doesn't buy what it used to. Over time the price of everything goes up.
Second, these cars are getting rarer each year. People are bringing back cars now I'd have scrapped 20 years ago. Yet, demand is still strong. Its simple economics, when supply is outpaced by demand prices rise. BUT, demand waxes and wanes. I've seen prices higher and lower than they are now. Classic cars are a commodity, no different from gold or silver. Prices will rise and fall over time. That being said, I don't see them hitting a bargain basement anytime soon, and likely never. You may see the top end values rise or fall $10-$20k on cars in the $50k+ range over a 10 year period, but the trend has been upward, and isn't likely to change.
Third, keep looking. There are still reasonably priced cars out there for reasonable money. You just need to have a realistic picture of what reasonable means. A driver fastback that isn't rusty, but isn't perfect (runs and drives, but needs work to be nice) is reasonable in the $20,000 range. What you have to look at is how much money it takes to turn that $11,000 parts car into a driver. You'll spend the $9,000 difference 2-3 times. In the end, the cheapest car you buy, ends up being the most expensive one you ever own. You are ALWAYS bucks ahead to buy the nicest car you can up front.
Last edited by TKOPerformance (12/15/2018 6:51 AM)
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...Inland.....NC....Ga. etc. Places where there is no salt on the roads in winter.