How do I start making money from Classic Cars now ? (Part 4 of 4)
How do I start making money from Classic Cars now ? (Part 4 of 4)
In this final part of our guide regarding how to make money from Classic Cars, we are now going to list some of the issues that may be worth considering on your way to total success in this industry:
1) Paying too much for the car initially through incorrect valuation.
2) Purchasing the correct make of European or Australian car, although the incorrect model.
3) Purchasing a car with too many kms showing on the odometer.
4) Purchasing a car with the incorrect engine option.
5) Purchasing a car with mechanical issues that should have been avoided, without calculating the correct repair costs.
6) Purchasing a car without listening to, and understanding the timeframe required to prepare the car for sale.
7) Purchased a car without using our Valuation Index when negotiating the buy price.
8) Purchasing a car from Europe without having it inspected in detail. The last 4 Aston Martin DB7’s that we purchased in December, 2013 were purchased after inspecting 67 cars all over Europe, and spending 2 hours on each car with it placed on a vehicle hoist for a millimetre by millimetre inspection of the chassis. If a car is imported via the RAWS Scheme into Australia, it has to be totally rust free or it may be scrapped, or at the very least not be allowed to be registered for use on Australian roads. Many people have fallen into this trap, and have lost all of their money. The car has to be at the right price in the right place in the right condition.
9) Purchasing a car in Europe without understanding the Australian Quarantine rules. In an issue that we are aware of in October, 2013, two trucks were imported into Australia. Despite having completely repainted the chassis’s of both trucks and having pressure cleaned them both for hours, Quarantine got hold of them and would not let them pass. The result was $7500 of further cleaning, as well as the cutting up of the aluminium body of the Tipper truck, rendering the body useless. The result was a$35,000 loss in total, and the trucks were sold for less than what they owed, at just under $100,000 each.
10) Purchasing a Classic Car from Europe that was the correct make, the correct colour, the correct year, although was the incorrect model, despite being a lovely car. A good example of this situation is a 1974 Truimph Convertible. In 1974 Triumph manufactured the Truimph TR6 and the Triumph Stag in a beautiful bright yellow. Both were this colour, both were convertible, and both had full wood grain dashboards. Despite this, the Truimph TR6 has always appreciated massively over recent years and is set to top £30,000 in 2014. The Triumph Stag however has declined in value for 10 years as nobody wanted the car. Finally, after advances in cooling system and cylinder head stud technology, the car is now reliable, and has plateaued in value, and will rise in the future. These cars are not worth much in Australia, despite the feeling that “ anything Triumph convertible “ is a wise investment.
We do hope that you have enjoyed reading our guide into trading Classic Cars. There are some large amounts of income being generated from working with Classic Cars, and we run Classic Car Wealth Creation Programmes to aid with streamlining this process. Maybe enrol for a FREE Seminar now.