Buying a classic car is much like buying a house, you get an idea of what you want, look through sales brochures, then go and view it. And if you like what you see your emotions kick in and your DTA or ‘Desire to Acquire’ takes over. Purchases of both houses and cars follow a similar path in the beginning. Both are concluded either privately or at auction and are often subject to very specific contract terms, but it is at this point the DTA kicks in for our classic car buyer and the paths diverge.
The average house buyer will almost always consult a surveyor to check over the property for defects and then seek the services of a lawyer to negotiate the purchase contract and check the house has a valid title before even thinking of putting in an offer… but usually our classic car buyer does none of these things.
The DTA drives them on with their purchase of a chosen classic and it isn't until after they become the proud owner of a shiny classic car, often having spent well in excess of £100,000, that they realise they have no real idea of its condition, the terms upon which it has been purchased, or its all important provenance.
Initially, this may not appear to be a problem. That is until after a short drive when frightening ‘clunky’ noises are to be heard, or mechanical/electrical deficiencies can become apparent and all too quickly the shiny exterior of the classic car they have just purchased starts to loose its patina. It is at this stage that a specialist engineer is engaged to comprehensively inspect the car and only then, after the purchase has been completed, can all sorts of issues come to the surface.
Our classic car buyer then, understandably, contacts the seller or the auction house where the purchase was completed only to receive a polite but short response referring to the concept of “buyer beware”, or pointing the buyer to the fine print in the auction contract. At this very late stage lawyers are then instructed to advise about the purchase and often it is too late and nothing can be done.
I have referred above to classic cars having an all important provenance. This should be a very important consideration to any purchaser, because it will give the full, or partial, life history of the classic motor car and when the car is sold in the future will, if comprehensive, assist the sale and help it retain its value.
If you are told that the car has been rebuilt, you should ask to see the photographic rebuild history and the receipts for the work that has been undertaken. This will identify the motor engineer who did the work and you will then have the opportunity before the purchase to contact them to discuss their work and identify if they have the specialist knowledge necessary. Also, make sure that the photographs you are shown tie up with the actual car being offered for sale, and that they will be included in the purchase! You should also check the engine and chassis identification numbers are correct, which can often be done with the assistance of a classic car owners club.
I would invite you to read the article on the following link which illustrates these points - www.motorsportretro.com/2011/07/maserati-birdcage - and demonstrates the important issues that I would advise my clients to consider when buying a classic car as an investment as well as re-enforcing the need to fully investigate the provenance of any intended investment purchase.