The Car Restoration Equation: Love, Value, and Cost

We probably turn away more than 40% of the inquiries about restoration we get at Sport and Specialty. Not every car should be restored, regardless of what the owner may believe. The “back of the napkin” way to calculate this is pretty straightforward.

The first question I ask is, “Do you love this car?”

• • If the answer is no…basically, case closed, move on. Every new surprise and invoice will be torture for both of us.
  • If the answer is yes, then we have a shared basis for moving forward.

We tend to forgive those we love for their transgressions. A proper restoration will be filled with unpleasant surprises. It’s best to have an emotional bond with the object of your desire.

Even then, I research the car and look to see what the “nicest one on the planet” might sell for, or bring at auction. I take into consideration if the car recently sold was a rare version, super low miles, or recently restored, etc. Remember, when done, this car may be the “nicest one on the planet.” Be realistic and set that number aside.

Next is the tricky part. I have learned my lesson regarding estimates and quotes. My X-Ray vision is poor, faulty, and usually somewhat optimistic. Optimism leads to sleepless nights and fear at every step of the project for both me, and the owner. Even giving a range is hard as most people only hear the lower number of the range. We generally work at time and material with an aggressive communications strategy. Monthly and weekly updates and lots of pictures.

If there isn’t some trust I’d prefer to move on with another project.

Having said all of this, I can look at some other cars we have done and extrapolate an idea of cost. Under or over $100,000? $150,000 to $200,000? The big question mark is typically fabrication and body work which is impossible to see until the car is naked. Usually after inspection I can make a quick determination.

Now, take the estimated finished value and subtract the estimated restoration cost. If the number is negative – which very likely will be – refer to my first question, “Do you love this car?” Remember also, you can’t drive something for nothing.

Most automotive purchases are generally depreciating assets. Collector cars values may vary over time, but a really nicely restored and maintained car will hold its value over time.

If you use the car, what is the fun value there? Can you amortize fun and enjoyment? If you can, join a club, take a tour, go to cars and coffees,

Enjoy your ownership. If you can’t, this is probably not a road you should be taking.

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