What’s Your Car Worth?

When buying or selling a classic car, determining the fair market value is always an issue because the values can vary so greatly. Classic cars that are no longer in production are valued by calculating so many different factors that at times it can seem a bit mysterious. Publications like the NADA Appraisal Guide and the Old Car Buyers Guide along with websites like Hemmings and Hagerty can help car owners to understand how the values are calculated, and they may also help explain some of the inconsistencies that make judging the value of classic cars seem more like an art instead of a science.

The rating systems are important because they can affect the price of the car as well as help estimate the work and expense of restoring it. One thing to remember is that most “car show” ratings systems will not consider the desirability and rarity of a car, and instead focus mainly on the interior and exterior mechanics of the car only. However, desirability and rarity obviously do play a big part in a car’s overall value, they just don’t award show points on those factors.

The big auction companies like Barrett-Jackson, Mecum, and Manheim usually employ a six-point grading scale to establish the condition of a vehicle. In that system a “number 1 car” is the elusive “perfect” vehicle that has been restored to the highest “show car” standards possible. As the rating numbers descend, so does the perceived quality of the vehicle. With such wide latitudes in scoring, it is not uncommon for amateur judges to make the mistake of classifying classic cars at values a bit higher than they truly would bring on the open market. This also explains why cars that win a “Best of Show” award at a local car show might only be rated as a “number 3 car” in a national event.

In the Six Point system, the following conditions are applied:
#1 = An excellent car that has been professionally restored to the maximum standard, or a car that is an extremely well preserved original.
#2 = An original vehicle or one with a superior restoration that can win best of class or show awards at regional level events.
#3 = A very well restored car inside and out that may be showing signs of wear. This is the most common category found at local and regional car shows.
#4 = A car in this category would be drivable and fully functional, but would also need some minor work too.
#5 = This category includes restorable cars that may or may not be running and need a complete restoration job.
#6 = The lowest of the six categories indicates a vehicle that is not restorable and is useful as a “parts car” only.

The Six-Point rating system is also often used in conjunction with a 100-Point system where cars are rated on a scale of one to five in 20 different categories. The Six Point category system is translatable to the 100 point system where Category 1 would be a 90+ point car, and each following category would be worth 10 fewer points until you reach Category 6 for cars under 40 points. Cars scoring less than 40 points are less than desirable candidates for restoration. In the 100 point system, the values start with a possible 100 points for a perfect vehicle, and descend with the following scores and conditions:

100 = A professional restoration that is complete and perfect in all aspects. 100-point cars can actually be in better condition than when they first rolled off the assembly line.
90 = An excellent car with a superior restoration that is nearly flawless.
80 = A show quality restoration on a completely operable vehicle.
70 = Seventy points is typical for very nicely restored cars that might be daily drivers showing some signs of wear.
60 = This category indicates a car that might need a bit of mechanical or cosmetic work but does not have any major flaws.
50 = Half of perfect, a 50-point car will be complete and functional, but will also need some work.
40 = Getting lower on the scale, 40 points indicates a car that is restorable but not restored, and definitely needs some parts and work.
30 = This category includes cars that need a lot of parts and labor, and will require significant investment.
20 = Most collectors will skip 20-point cars because they are considered as parts vehicles only, and are not usually worth restoring.

Enthusiasts seeking to buy or sell a classic car can use these ratings systems as a basic guide or starting point, but they also need to remember that there are many other variables that can affect the actual value of a car including general market trends, dealer sales, private sales and auction sales too. Buyers and sellers both need to be aware that the actual value of a particular car will be determined by the current economic climate, what the current market is interested in and what current buyers are willing to spend. Anyone who has watched a Barrett-Jackson Auction on TV knows that the appearance, style, and popularity of a car can affect the value more than the age of the car. Those enthusiasts who are seeking to determine value for insurance purposes only are advised not to rely on amateur evaluators and should instead rely on the services of a professional certified antique car appraiser in order to figure out exactly how much to insure a collectible car for.

Outside the realm of car shows, demand and rarity are both important factors in establishing value. If a car is in high demand and the seller wants the highest price possible for it, the car will need to be in perfect condition in every aspect. You can estimate what your own car may be worth by comparing it to the asking price for similar vehicles in the same condition that are for sale in collector magazines and on collector websites. If the car is truly rare and only produced or found in limited numbers, the seller can often name his own price regardless of what the pricing guides might indicate. In these instances, the value of a car is whatever the market will bear.

The levels of the restoration work performed on a car as well as the current condition of the car at the time of sale are also important value factors. In this light, a car that has had a top-level, professional restoration will always be worth more than the same car with an amateur restoration job. Calculating the value of a car that still needs work presents a different challenge, as the amount of cash needed to complete the restoration must also be factored into the price. Generally speaking, the closer a car is to its original factory condition, the more value it will carry. Cars that have had a full-blown professional restoration can see a bump in value though, and cars with less-than-perfect restoration jobs will see a corresponding decline in value. Popularity also has an effect and cars that are currently trending as popular items will bring higher prices due to their higher overall appeal. One aspect of antique and collector car value that surprises many people is that the mileage indicated on the odometer is not as important as one might expect. Since so many classic cars have had their gauges replaced, repaired or reset over the years, the condition of the car is always far more important than the mileage.

Modifications to classic cars are up to the discretion of the owner, but in most cases, non-factory modifications have two effects. One is a decline in value when compared to the same year and model car in original condition. The second effect is a change of classification, as cars modified with modern or aftermarket parts will be considered “restomod” cars, and they will not compete at shows with the same type and year of car in factory original condition. However, some cars that are more common classics can see a bump in value due to the modifications if the buyer likes what he sees. This is true of some classic ‘60s muscle cars, where mods like a new engine and transmission can make a car more drivable and valuable if the buyer is interested in driving the car. As a general rule, if the modifications don’t make sense, they will usually cause a decline in value.

Seldom are two classic or collector cars found in exactly the same age and condition these days, and that’s the nature of the market. Determining an accurate value for a car using pricing guides and points systems alone should only be applied to cars in top condition because no one system or guide can take all of the many different variables into account. Sometimes the emotional appeal alone might bring a top price sale, this is an effect seen with celebrity-owned vehicles that bring higher prices due to the fame factor alone. The ratings systems and points schemes presented here can be used as approximate guides to the value of a collectible car, but in the end the real value is the price a car will actually bring on the open market.