Buying a classic car is an exciting endeavor! There are many places you can purchase an old school American hot rod including classic car dealerships, online sales sites, and even auctions. There are lots of things to look out for when shopping for a classic car in general which you can find in our Guide to Buying a Classic Car. We’re going to expand on that guide and tell you what you need to know before buying a classic car at an auction.
You’ve probably seen a classic car go across the stage at Mecum or Barrett-Jackson on TV at some point. Perhaps you’ve even see the familiar headline that goes something like “rare barn-find sells for half a million at auction!” Classic car auctions are a great way to find the car you’re looking for especially if its rare or hard to find. The most important thing to remember before buying a car at an auction is to do your homework.
The atmosphere at an auction can be chaotic, exciting, and lots of fun. It can be a lot to take in at once if you’re attending for the first time while also examining cars at the last minute and trying to decide what to bid on and for how much. We always recommend you attend an auction as a spectator first so that you can see what the process is and take in all in without having to worry about bidding.
Classic car auctions are fantastic places to find rare vehicles that wouldn’t ordinarily be listed on resale sites. However, if you’re looking for a classic car that is more on the ordinary side then an auction may not be the best place for your purchase. Ordinary classics have a tendency to sell for more than they may be worth at auctions.
Most auction companies will release their docket for upcoming auctions for those who pre-registered to bid. The docket includes photos and descriptions of every vehicle that will be crossing the stage. This is your most valuable resource. Use it to find the vehicle you want and examine the listing thoroughly. Sometimes, the listing isn’t very descriptive but, it should still contain the vehicle’s VIN. From there you can do some research in the car community where you may be able to find out some more information.
You may have seen the terms “original” and “restored” being used to describe classic cars that are for sale. When shopping for a car no matter if it is at an auction or not, it is absolutely imperative to know the difference between the two phrases as well as what each phrase actually means. If not, it can be a very costly lesson. You can read a more in-depth explanation of the difference between “original” and “restored” in our Guide to Buying a Classic Car, but the bottom line is you don’t want to overpay for a vehicle because you thought it was one thing when it was actually another.
A vehicle that is completely original, also known as numbers matching, is very rare and the price reflects that. On the other hand, a vehicle that has been restored may not have been restored back to the vehicle’s completely original and numbers-matching condition.
For example, we recently completed a restoration on a numbers-matching 1967 GT500. When we had the engine refreshed we found that the intake leaked. In order to maintain the value and integrity of the numbers-matching car, we had to repair the original intake rather than replace it. Now, by the time this GT500 found it’s way into our shop it was already over 50 years old. At any point during those 50 years the intake could have easily been replaced for a brand new one that didn’t leak. However, the owner of this particular hot rod knew the importance of keeping everything on the car original which has proven to be a very wise decision!
There is more to purchasing a classic car at an auction than the price of the car itself. Keep in mind that you will need to factor in shipping the car home and be sure to account for the buyer’s fee which is usually around 10% of the purchase price. Also, be careful to not get caught up in a bidding war and overpay. Auctions can be exciting and we’ve seen a few customers get caught up in the heat of the moment only to end up with a classic car that they paid nearly twice the actual value for.
One of the most important decisions you can make after making your classic car purchase it to insure your investment. There are a few companies that insure classic cars but we recommend Hagerty. We are one of Hagerty’s preferred repair shops and we have seen firsthand that they always treat their customers and their vehicles fairly.
Most vehicles that cross the stage at auctions are in great shape. However, we always recommend that take it to a reputable shop that specializes in classic cars and have them look it over for any possible issues. We always know when the big auctions come to Houston because shortly after we have several of the vehicles show up at our shop for a once-over. While it’s not common, there have been a few instances where the car purchased at an auction had some major mechanical issues that needed to be repaired. So it is always a good to idea to have your new purchase inspected.
