Is a Classic Car Restoration a Good Investment?

Many car enthusiasts, old and young, dream of returning an old car to its former glory with a complete restoration inside and out. But is a classic car restoration a good investment?

We answer that and more in our guide to vintage vehicle restorations below!

A Car Restoration Can Be a Good Investment If Done Correctly

Cars, especially older vintage models, are always tricky investments to gauge because they depend on individual factors like condition, rarity, and desirability. 

But while every car project has risks, a classic car restoration can be a good investment if done properly.

Restoring a car is not unlike flipping a house—the right model, with some elbow grease and updates, can go from a junker to a valuable classic and dramatically increase its value. 

If the model is rare or highly sought-after, even some basic cosmetic changes can make all the difference in its value. 

But before you jump into a top-down complete restoration of an old car, there are some things to ask yourself first to ensure it's a wise investment.

Questions To Ask Yourself Before Restoring a Classic Car

What's My Project Budget?

First, you should decide how complete the restoration you plan on doing is and what budget you'll need to finish the project. There are four levels of car restoration, ranging from just making it drivable again to a complete restoration to make it look brand-new. 

The higher the level, the greater the investment and the potentially bigger payoff, so weigh the pros and cons of each level and figure out your needed budget from there.

Is the Car Worth Restoring?

Next, owners should consider whether the vehicle is worth the investment and restoration. Even with thousands of dollars invested into its restoration, a classic may still not be valuable if it's a common model and not interesting to collectors and enthusiasts. 

Research the car you plan on restoring, see what similar models are fetching for sales and auctions, compare it to your proposed budget, and weigh whether the car is worth restoring.

How Much Can I Do Myself?

Doing some parts yourself is a great way to save money during restoration and put it towards other areas of your budget. But you should be self-aware of your abilities and limitations—you can do more harm than good if you mess up and damage the car and restoration. 

You can do the project's smaller, less important aspects but leave the bigger issues to the professionals with the necessary equipment to ensure you don't damage your investment.

Final Thoughts

We hope you've enjoyed our breakdown of classic car restorations and their investment quality. Restoration is an excellent investment and hobby for many seniors, retirees, and soon-to-be retirees. 

So, if you've always wanted to rebuild a car from scratch, there's no better time to do it!

Tips for Restoring a Classic Car

 For auto enthusiasts, there are few things that are more fulfilling than finding an old classic vehicle and going through the steps to restore it back to its former glory (perhaps with a few updates). However, restoring a classic car is anything but easy, and is a process that takes a considerable amount of time, effort, and money (lots and lots of money). 

It isn’t uncommon for people who are restoring a classic car to spend years of time doing so, especially if they work a full time job on top of that. Regardless, the feeling of getting behind the wheel of a classic that you restored is well worth the trouble. Here are some tips for restoring a classic car...

Consider what type of restoration you’re doing

Typically, when people are restoring a classic car, there is a reason that they are doing so, whether it be for a car show, a competition, or even just for their own personal benefit. The purpose of your restoration is going to determine some of the finer details of the work you are doing. For this reason, you should figure out the reason for your restoration, first.

If you are restoring for a car show, then the bodywork is going to need to be a lot more precise, whereas the cosmetic work on a car that doesn’t need to be show-ready will be far less intensive. Another thing to consider is that doing a restoration for a local car show or competition is going to create an inherent deadline that you need to be done by.

Have an easily accessible place to work

Fixing up an old car takes time, and you’re going to need to work in a place that is available for you to work at your own pace, while taking up a great deal of space. You want to be able to do this in a large garage that is outfitted with the equipment that you’ll need. 

Ideally, you’ll be able to do this as a project in your own home garage, assuming that it is big enough and you don’t need it for other reasons. However, if you aren’t able to do it in your home garage, the good news is that there are usually co-ops of mechanics who pool resources together for workspace and equipment that you can join.

Find the right car

Some cars are going to be a great deal more difficult to restore than others. Putting together an old VW Beetle is a heck of a lot easier than trying to restore a 62 Shelby Cobra. 

For this reason, it’s important to pick the right car for your restoration project, especially if this is your first time doing so. Do your research about what vehicles are more difficult to find parts for, and how much time and money is liable to go into restoring them. 

In addition, it might be a good idea to ask around the auto enthusiast community to get an idea of what they would recommend.

Add modern amenities

When you are restoring a classic car, there’s a tendency to think that everything you are doing needs to reflect the state of the vehicle back when it was released. 

However, you don’t necessarily need to replicate the factory-settings of the car. Indeed, if you are planning on driving and enjoying this vehicle, you’re probably going to want to take advantage of the modern conveniences that have advanced in the auto industry over the past several decades. 

Here is a list of some modern updates that you should think about for your classic car restoration.

Have an experienced consultant

While there are plenty of sources of research that you can find online, it’s still invaluable to have the advice of an expert mechanic that you can turn to. Ideally, you’ll just have a friend who has already restored a classic car that you can get advice from. 

However, if that’s not the case, then check online for auto restoration groups. These people are enthusiasts who are usually willing to share knowledge and insight with people who are trying to get into the same passion.

How Is Classic Car Insurance Different from Regular Car Insurance

 (Photo credit: Wikipedia)

The average driver uses their car for work, shopping, and travel. The amount payed for car insurance depends on the age of the car and your driving record. Depending on whether you have a new car or just a jalopy, the amount of insurance can vary. But the costs vary according to how much the car insurance agent knows it must pay to repair or replace your car. 

But what if you have a classic car? Many of us have that dream of owning a classic car. The car could be the car you had in your youth or that car you could never afford to buy. Now that you have it, you wonder what type of insurance do you need.

Classic cars have many of the same qualities as your new car. They need to be insured for theft and damage. But do classic cars need any other types of insurance. There are differences because the classic car is not driven on the road as much as the new car. How do insurance companies account for this?

Classic car owners take a lot of pride and care in their classic car ownership. They could of personally took the time to restore the car. Maybe even taking years to painstakingly restore the car to its original appearance. So when it comes to insuring it they are very concerned about insuring it correctly.

What is a Classic car?

Most people have some idea what a classic car is. But what do car insurance companies consider a classic car? Insurers vary according to their definitions of a classic car. In general, cars built between 15 and 25 years ago are considered "classic," while those older than 25 years are considered "antique." Make sure an insurance company considers your vehicle a classic before signing on the dotted line.

What does classic car insurance actually cover?

The amount of protection varies according to the policy. Comprehensive coverage is typically the same for a classic car as it is for a modern car but with a few extra restrictions.

Insurance policies often limit how many miles per year you can drive your classic vehicle. Many insurers also put restrictions on who can drive the vehicle.

Some policies put mandates on classic car storage. Because these cars frequently attract the attention of vandals and car thieves, many insurers require you to fit your car with approved security devices and store it in a locked garage.

Many insurance companies also offer insurance coverage for replacement parts. These policies are worth looking into if you have a valuable classic vehicle or you want any replacements to be truly authentic.

What are the specifics of a classic car policy?

While looking for classic car insurance I started online. After searching online, I found the Hartford through AARP. They specialize in giving a classic car insurance quote

12-Month Rate Protection

Because the AARP Auto Insurance Program from The Hartford offers a 12-month policy, your classic car insurance rates are locked in for a full year — not just 6 months like most other companies.

Lifetime Renewability

No need to worry about losing your classic car insurance. Once you become a policyholder, you are assured continued coverage as long as you’re able to drive and meet a few simple requirements.

Auto/Home Bundle

If you bundle your home and auto insurance with the AARP Auto and Homeowners Insurance Program from The Hartford, you could save on both.

Anti-Theft Device Discount

Anti-theft devices can be either active or passive disabling devices that protect a car from theft and save you money on your Comprehensive Coverage. If you must manually activate the device, it is considered active. If no separate step is needed to activate the device, it is considered passive.

Defensive Driver Course Credit

If the classic vehicle is the car you principally operate, you’re the primary operator of the vehicle, and you have completed an approved defensive driver course, such as the AARP® Driver Safety Program, you're eligible for an auto insurance discount for the next three full years.

Not all car insurance companies provide classic car insurance. Some do but they do not specialize in it. Be sure that you classic car insurance is provided by a company that specializes in it. You do not want to risk your classic car with just any company.

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