HOW MUCH IS
MY CAR WORTH??
If there was one question, which could make me rich every time I discuss my business with individuals, it is this one.
There is no exact science when it comes to telling someone how much their car is worth. The easiest answer is “Whatever the market will bear”.
It does not matter whether you have a beautifully restored 1955 Chevrolet Corvette 6-cylinder which is one of seven produced or a 2016 Porsche Cabriolet. Everyone has an opinion on the value.
Most of the time individuals look online at what people are ASKING for a similar vehicle and base what their car looks like to the one pictured. Many times, people do not read the ad to see what has been done to the car to make it look like it does in the photos.
One of the most common expressions I get when pricing a car is…” I know I can’t get what I put into my car, BUT I know it’s worth____________”. Well if you know you can’t get what you invested in the car, than there is no “BUT”….YOU CAN’T!!! A combination of pride and possibly a poor investment of funds come into play.
What I mean is the owner is afraid to admit they made a mistake for spending too much money on building or restoring their car and it cannot be recovered when the car sells. Why did the person build the car in the first place……Good question?
USUALLY, it is because of the passion they have for automobiles. Their car is like a piece of art, it reflects their personal tastes and preferences. It could be because they admired a similar model when they were young and now at an age where the kids have left the home and their income is higher than before, they want to buy or build that special car they couldn’t enjoy 30 or 40 years ago. That is great, but not everyone has the same dream. So, when the owner goes to sell classic or vintage car the new owner wants the car for another reason, such as a gift for their spouse, or child’s graduation and could care less for the sentimental value. No price can be placed on feelings.
What I try to do when pricing a car, whether it is a classic or newer model, is see where comparable models are SELLING. This is the best barometer to gauge where a car will sell. Usually ‘Googling’ “sold Prices” will give some good estimates. Newer models have Edmunds.com and Kelley blue book.
Having an appraisal performed can sometimes hurt the sale ability of the car because it is usually inflated to cover the cost of rebuilding the car due to an accident. Even in today’s world, insurance companies would rather total a car which has been in an accident versus repair it because of the cost in parts and labor.
The other point which many “baby boomers” miss is the ‘Law of Supply & Demand’. As an example, the 1955 Chevrolet Corvette 6-cylinder mentioned above, maybe one of only seven built in that year, but who wants to drive one on todays roads!!! After all the ’55 Vette does not have air conditioning, power steering, or power brakes, or power windows, or independent front suspension. It handles like a truck!! So, the market of potential buyer’s is very small, and getting smaller, so the price will be lower than what it was 5 or 10 years ago. Now if someone added all those power options and a 400+ horsepower engine the car might sell for $100,000 or more, but it will cost the owner twice that amount to build it. So why not buy a new Corvette that is faster, easier to drive, and COMES WITH A WARRANTY?
In conclusion, the sale price of your car will depend upon the market value (supply vs demand) of what a buyer is willing to pay.
Should you have an interest in selling your classic, exotic, vintage, or even ‘newer’ model car, please feel free to call me and arrange an appointment to discuss the particulars. Visit my website for my phone and email address.
Thank you for reading…..
J.D. Kurzmann