Does restoration increase a classic car value significantly ?

This is the story of the owner of a 1962 Buick LeSabre and his classic car value.

He was told by a local shop the the increase in value would be worth the equivalent of his restoration bill once completed. When the bill came with a $32,000 price tag, the owner was horrified. He quickly found none of the collector car insurance companieswould insure it for more than one-third the restoration cost.

While the owner did not mind spending the money on his grandfather's old car due to personal ties, the insurance company did not share his nostalgia and would only insure it for replacement value. The owner was mad at the shop, his appraiser and the insurance company. The truth is, he did not do his homework and let his fond memories ofchildhood trips with Grandpa cloud the issue.

Only a few years ago in the late 1980's classic car values were skyrocketing. One could barely buy a car and not have itescalate in value quickly. Restoration costs were taken for granted and presumed to reflect assured return on investment. Speculators jumped into the hobby seeing quick bucks to be made. The auction area was filled with convertibles quickly painted "resale red" netting the non-hobbyist investor his reward.

By 1991, the collector car market took a severe "adjustment". Speculators were gone and classic car values began to return tolevels comparable to the mid and early-eighties. In some ways this was healthy. We have seen classic car values ever so slowly begin to creep back up again at a proper inflationary level. The hobbyist is back in control.

Fewer cars are getting quickie restorations for resale. The serious car collector/restorer or even street rodderis doing it for the fun of it once again. We are seeing wonderful new products such as Hot Coat Powder Coating Systems, making the job easier and quicker. It is still possible to find the car of your dreams and fix it up at great savings. The result depends on your ability, willingness to learn and the quality of supplies and toolsyou use to build your car. Products like paint have taken huge leaps in quality and application, but so has the cost. What once was a $1000 paint job may now cost $3500. Other products today save you time and money.

The car restoration and modification hobbies are great fun. They are hobbies anyone with a little time, talent andmoney can enjoy. Restoration also permits you to spread the cost of your dream vehicle out over a longer periodof time. You can control the quality and authenticity of the restoration. And, yes, you can even control the cost via hard work and perseverance. But, don't expect that every penny will be returned to you through the increase in your classic car value at the time that you sell the vehicle.