Can I Afford a Classic Car?

If you've always wanted to own a classic car and feel like time is sneaking up on you, the first thing you need to ask yourself is if you can really afford a classic car. From restoration to maintenance to insurance, there's always a price to be paid, and the more you look through the sale ads in your newspaper, the more you may come to think that buying the classic car of your dreams might be just that - the stuff of dreams. Before you go down the road to purchasing a classic car, consider the following factors.

Can I Afford a Classic Car?

Having a mortgage and a couple of kids doesn't necessarily mean you can't enjoy a little bit of vintage motoring. You just need to set your sights on the right market. Maybe you can't quite afford that Ferrari California you've been lusting after since you were 16, but did you know that you can often pick up a mid-1960s British convertible in good condition for less than $5,000? Don't let your initial perceptions hold you back. Who says you can't have just as much fun in an inexpensive car as one worth more than your house?

How Do I Go About Buying a Vintage Car?

The unfortunate truth is that you really don't want to take out a loan for a vintage car. Banks just aren't interested in providing financing for a vintage car, even if it's valuable. While you can technically take out a loan against your home for the purchase price, that really isn't wise. It's a much better idea to go about it the old-fashioned way and save up for the purchase. Sure, that might preclude you from buying a $25,000 Boss Mustang, but if you look carefully, you might just find one for a bit less. Begin by searching through the classifieds for a running, base-model vintage car that has the body style you want. You might be surprised what bargains will turn up. Once you have a general idea of what the bare bones of your ride will cost, you can start saving up. You might have to pick up a second job or cut back on lunches outside the office and brown-bag it for a while, but if you figure that a lunch costs about $7 or $8, you can reasonably expect to save nearly $2,000 in the course of a year.

What Do I Look for When I Make My Purchase?

It's important when you make your classic car purchase to look at the car objectively and not just fall in love with it. For all the money you've saved, you should try to get a vehicle in the best possible condition. In most cases, a year's worth of savings will usually earn you a running, driving, and relatively rust-free vintage car that you can restore a bit at a time or just drive as-is. Use caution when you're purchasing a car that doesn't run, though, as a high price tag on a non-running car, regardless of its name, is generally a warning flag. Chances are good that the previous owner learned a lesson about how expensive it can be to properly restore a special vintage car, and now they're trying to pass that lesson off on someone else. Just because it's $2,000 and a Ferrari doesn't make it a good deal. You could easily spend $100,000 just getting the car road-worthy again, and concours restorations on vintage cars of that caliber routinely tip the scales at well over $1 million. On the other hand, it's not unheard of that a $2,000 1965 V6 Mustang can be restored to drivable for less than the purchase price of the car. Look for an engine that turns over freely; a solid, rust-free frame; an interior that isn't chewed apart; and a relatively rust-free body, and you'll be good to go.

What Does Classic Car Insurance Cost?

While it depends on your own driving and insurance record, generally speaking, you will pay less for the insurance on a classic car than you would on your daily driver. The reason for this is that insurance companies classify vintage vehicles as "recreational vehicles" that aren't driven every day. This means that you'll pay less for comprehensive and collision coverage, and your deductible will likely be less, too. However, take care that the final value of the vehicle is agreed upon by both you and your insurance agent. They may not see a fully restored vintage Cadillac when the paperwork comes through as anything more than a 50-year-old hunk of scrap metal, and you'll be paying accordingly if the car is damaged beyond repair.

If you buy carefully, obtain the right insurance, and do most of the work of restoring the vehicle yourself, there really isn't any reason that a classic car shouldn't be more affordable to own than a new car. They are, for the most part, easier to repair because they don't have complex electronic systems, and they are usually less expensive to purchase, as long as you don't mind a diamond in the rough.