Too much money for re-sale projects?

[ProTouring442]

So, what do you do then when it's finally time to part ways with your ride, just accept the fact that you're going to take a bath on the deal?
I've owned my project car for Forty years and due to health reasons, I think that the time has come to pass it on. That leads me to having to put a price on something that I've been trying to ignore prices on. Because I had no-name shops do the work, that doesn't translate to "added value" to the car. Where do you price the modifications then?

I just bought a 2017 Genesis G90 for $26,000. The original buyer paid some $75,000 for the car. He lost a good $50,000 on his car (and only drove it 40,000 miles!). Such is how it goes. Cars are almost always depreciating assets.

A hot rodded/customized "classic" car isn't quite the depreciating asset a new car is, but that's only true while that particular car or style in in vogue. It's a supply and demand thing. Build a car on the cusp of a boom in demand for that style and you might make money. Own the car when the demand bubble crashes and you'll have your ass handed to you.

Build what you want because it's what you want and accept the cards however they fall.

[Vimes]

Well, if you guys feel like an appraisal is not needed that's fine. I'd prefer to have the extra docmentation.

[JLMounce]

Well, if you guys feel like an appraisal is not needed that's fine. I'd prefer to have the extra docmentation.

Yeah the appraisal is good to have when it comes to the insurance side of all of this.

I think the appraisal in the context that it's being talked about here may be more along the lines of trying to sell a vehicle. In that case I don't know that it matters as much. A buyer is going to pay what they think the vehicle is worth to them, regardless of what an appraisal says it's worth.

[badazz81z28]

I just bought a 2017 Genesis G90 for $26,000. The original buyer paid some $75,000 for the car. He lost a good $50,000 on his car (and only drove it 40,000 miles!). Such is how it goes. Cars are almost always depreciating assets.

A hot rodded/customized "classic" car isn't quite the depreciating asset a new car is, but that's only true while that particular car or style in in vogue. It's a supply and demand thing. Build a car on the cusp of a boom in demand for that style and you might make money. Own the car when the demand bubble crashes and you'll have your ass handed to you.

Build what you want because it's what you want and accept the cards however they fall.

Why do people think that’s a $50k loss? You didn’t get a $75k car for $26k, you got a $26k car for $26k

That car has 40k miles of wear, that’s a lot of wear on car. There also isn’t a warranty anymore…..the car depreciated based on wear and tear, not just because

[badazz81z28]

I disagree. Someone hits your car, their insurance will try to claim your 81 is a 45 year old car, only worth the scrap price of the steel. They will want to total it even if the damage is as minor as just needing to replace the rear fascia. Having an appraisal from before the accident gives you something to push back on. Unless you have an agreed value policy, your own insurance likely won't be any help.

that’s not how it works with your run of the mill insurance policy. You don’t get value by your investment…that’s why classic car insurance exist.

[Vimes]

that’s not how it works with your run of the mill insurance policy. You don’t get value by your investment…that’s why classic car insurance exist.

I know exactly how it works with run of the mill insurance. And, I want to have a record showing the actual value of my car made before the accident. If I have to take the other party to court I'll have a much better case if I can show "My car was appraised on X date as having a value of $xx,xxx dollars" than I will have if I go to court and say "My car was worth $xx,xxx dollars because that's the least I'll take for it."

As I said earlier, nobody else has to have an appraisal done but I will, and will have it done periodically once (if) my project gets completed. Appraisals aren't that much, and they can make your case much stronger. My insurance should be a fallback, and not have to make up the difference between the other party's limit and what the other insurance company wants to value me at. Mine would be valued at about 2 grand if that were the case because I'm doing a very common, not very sought after pickup. Besides, an appraisal only costs a couple of hundred bucks.

[badazz81z28]

^^ ain’t gonna work. Your insurance premium is partially based on the vehicle value. You can’t pay $1500 car value insurance and then whip out a $65k value claim when you have an accident.

[Vimes]

I don't think you understood my post. I never said I was going to try and pay coverage like it's a beater then whip out an appraisal after an accident, expecting my insurance to make good. My insurance will know before I go on the road what they're insuring on an agreed value policy.

What I said is I don't see why my insurance company, who will be fully aware of my valuation while charging a premium to reflect this increased valuation, should have to make up the difference because their insurance company wants to pay out a hooptie valuation on a full restoration with improvements.

[srode]

Um, this started as a discussion about the cost of unfinished project cars and drifted quite a bit so now it's about insurance coverage and appraisles etc. Maybe we should start another post about insurance.