So what’s it worth?
The first question most owners will ask is
what is my car worth? And the answer is:
it depends. A whole range of factors will
affect a vehicle’s value. Hagerty Insurance
started a price guide in 2007 to help own-
ers determine the condition and value of
their vehicles. “A 1963 Ford Galaxy has
263 different model and submodel com-
binations,” says Jonathan Klinger, vice
president of public relations for Hagerty.
“The value for that model could be any-
where from $10,000 to six figures. You
need a much deeper level of understand-
ing in order to value the car.”
Klinger goes on to explain. “We look at
classic vehicles differently than modern
vehicles. There is depreciation with mod-
ern vehicles. On the collector side, these
cars have hit the bottom and are going up
dramatically in value.”
Hagerty uses four different vehicle con-
dition descriptions to help classify them.
Condition #1 — These vehicles can
only be described as “the best in the
world,” immaculate perfection in every
sense from the color of the vehicle, to
the paint and chrome surfaces and tire
treads. Not a speck of dust or dirt is on
these vehicles. Hagerty describes these
cars as “concours,” denoting vehicles of
only the finest quality.
Condition #2 — Hagerty defines these
vehicles as “former #1 cars that have
been driven or have aged.” Flaws, if any,
will not be obvious, and the exterior and
interior will be described as “excellent.”
Mechanically, the car will not have any
unusual noises or excessive smoke, and
will even drive as if it was new in its era.
Condition #3 — These cars may have a
fresh coat of paint and an accurate interior,
but there may be some incorrect parts on
them. While you wouldn’t use them every
day, they are certainly ready for long drives.
Hagerty describes these cars as “good.”
Condition #4 — Any flaws on these
vehicles will be more obvious to the na-
ked eye such as pitting, scratches, chips or
dents. These vehicles might be driven reg-
ularly and they are showing some signs of
wear and tear as their restoration begins
to deteriorate a little. There may be sub-
stitute parts and other injuries like splits
or cracks on the interior. These cars are
described as “fair.”
By way of comparison, a 1952 Jaguar
C-Type, 6-cylinder, two-door roadster
in Condition 1 would be valued at $4.9
million by Hagerty’s online valuation
tool. The same Condition 4 car would be
worth significantly less at $2.9 million.
Other questions to consider when es-
tablishing the value of a vehicle include:
• Was the vehicle stock or has it been
Klinger says there are several sources
owners and adjusters can use for valuation information.
1. Hagerty price guide — this provides
pricing information for vehicles from
1946 forward for collector vehicles
2. Kelly Blue Book — a source for information on modern and classic cars
3. Old Cars Price Guide — pricing information on cars through 2005
4. Marti Report — licensed by the Ford
Motor Company the site provides information on all Ford vehicles/models
While the most
desirable car is one that
is undamaged, properly
rebuilt vehicles will also
hold their value.
As anyone who is a classic car aficionado knows, this is not a hobby for those
with small wallets. Some well-known
gearheads include Jay Leno, Reggie Jack-son,;Tim;Allen,;David;Letterman,;Mark
Harmon, Billy Gibbons (ZZ Top), James
Garner, Steve McQueen, Jerry Seinfeld
and Paul Newman. Leno even hosts a
show now about restoring classic cars.
So what makes a car a classic? The short
definition according State Farm is that
a classic car is any “vehicle ten or more
years old, which is rare or of special historical interest because of exceptionally
fine workmanship or limited production.”
So just because you have an old clunker
sitting in the driveway that is more than
10 years old doesn’t mean it’s a valuable
classic. Classic vehicles that are 25 years or
older are considered antique automobiles.
According to American Collectors Insurance, collecting cars has grown exponentially over the past few years. Last year
cars achieved record prices at auto auctions, generating more than $1.3 billion
in sales and estimates are that the market
will continue to grow by around 5 percent
American Collectors says the most
popular manufacturer was Ferrari since
eight of the top 10 most expensive cars
were vintage Ferraris. Baseball Hall of
Famer Reggie Jackson paid $700,000 for
a 1991 Ferrari F40 at the vintage car auction in Scottsdale last year, where a Ferrari California Spider sold for $8.8 million,
and that wasn’t even the most expensive
car sold at auction. That honor goes to a
1962-63 Ferrari GTO which American
Collectors says was sold for $38.1 million
at an auction in Carmel, Calif., in 2014.
Needless to say, insurance coverage is a
priority for classic car owners.
Americans have a love affair with classic cars. from James bond’s aston Martin to thomas Magnum’s red ferrari 308 gts, some were iconic in their time and have since gone on to
become famous classics. consider the ’69 chevrolet camaro
ss, the ’66 ford Mustang gt or the Pontiac gto Judge.
these and others have more than stood the test of time.