Introduction
In vintage or collectible car circles we too often tend to judge content by outward appearance. We tend to purchase on the emotion created by form and finish. How many times has this been the basis for disaster or at least disappointment for each of us?
The right price? A bizarre notion in an open-air, third-world market, and so it might seem in the vintage racecar marketplace. If we each face the realities of our “inner buying selves,” part of the romance of the entire hobby is the possibility of discovered value, the challenges of the “deal,” and the delight of adding value through restoration. It is easy to get caught in the enthusiasm but it is not often the smart approach. Vintage racecars are not antique chairs, object d’art or other more easily evaluated collectibles. “True condition” has myriad aspects in a complex collectible such as a vintage racecar. The surface (lipstick and polish syndrome) may indicate perfection, while internal condition and component quality are far less evident (the surprise quadruple bypass syndrome). It is in properly assessing the whole “enchilada” that the foundation of a truly good acquisition is built. This takes skill, experience and a bit of work. The points that follow are intended to help illustrate and explain the process.
A great deal of work goes into the preparation of serious collectible valuation guides. Sales are tracked, experts are polled, trends are noted and ranges are produced. Why then can vehicles oft be found selling both well above and below well-considered value ranges? Several factors contribute, some of which tend to be more prevalent in vintage racecars than the general collector car arena.
Vintage Racecar Valuation Variables
The following major factors account for the oft-times apparent variancy in value guide ranges.
Dumb deals and steals – someone pays way too much or too little when a seller or buyer does not know the market (auctions sometimes eliminate this variable).
History – value guides cannot fully consider history, save the instance of a rare model of which all examples have significant history.
Exceptional cosmetic and/or mechanical condition – value guides cannot account for the exceptions. These tend to be the “most perfect” or the fastest of its type in vintage race circles.
Exceptional component quality or condition – special state-of-the-art engines and transmissions, spare packages and so forth can cost and be worth near as much as the car on lower end vehicles, and add considerably to the value of others.
Value Guide Range
Most collectible value guides use averages. Vintage racecar guides are not an exception. Internal component quality is assumed to be average. How large can variables for history, component quality, and wear be from published norms? 10%-20%-50%…more? The answer is simply all of these. It depends on the individual car. One D-type Jaguar can sell for under half a million while another brings over $2 million. This phenomenon is not limited to ultra rare exotics. One vintage race-ready 1965 Mustang can sell for $15K while another demands near $5K. All may be good or at least fair prices. Negating the “deals and steals” explanation, the difference is always determined by the car’s history and/or condition.
Added Value
How do we adjust values to account for aforementioned factors? Some rules to remember.
Components and Condition – Separate capital improvements from maintenance. Both are relevant but on different sliding scales.
Component Quality – The “best of the best” in component quality (capital improvement) is often worth the premium, while a fastidiously maintained lower quality example is not. Maintaining lesser items perfectly cannot offset their weakness, though it can produce better race results. As an example, one can acquire a pretty good vintage legal and race-ready Austin Healey Sprite for under $10K, while the best with all the right bits seems overpriced @ $25K. Depending upon your objective, it’s actually better to buy the expensive car with consideration of upcoming maintenance costs, performance, and reliability. “The best” will likely have an engine with a steel bottom end, assembled and Dyno tested by a recognized engine builder. It should have the “right” (read strong and well-sorted) driveline, suspension and so forth though it may not look any better than the $10K example. Most importantly it will have the vintage race record (results) of a front runner and the receipts to back up its quality. This documentation is worth the difference, as the upgrade of the lower dollar car is generally far more costly, not to mention the disappointing weekends of “almost” or “also ran” races, often a part of lower dollar vehicles. The same logic applies throughout the various vehicle groups, though it’s a much smaller percentage of worth on lighter dollar items. Remember, race results must be backed up by thorough documentation. Do not pay the high dollars without it. Omitting proof of quality can be expensive. Remember, some vintage Porsche and other engines can cost near $100K to replace.
How Much To Pay?
General rules of thumb for assessing values beyond value guide ranges are:
Do not exceed the value for vehicles without consistent front running results, premium components, and documentation of their current condition.
Do not exceed the value range without vehicle results and receipts to support representations.
If these conditions are met, evaluate added value based on a percentage of the funds expended. You should have (read must be provided with) copies of all the bills. Capital improvements must be totalled and added at a significant percentage of their cost. The percentage varies with vehicle and component. A rough rule of thumb is 30-50% of cost for items less than 5 years old. Maintenance is more difficult to assess. Race cars are the sum total of their components. Tubular chassis wear out, just like engines. A very complete understanding of vintage racecar condition counts for more than it would in other automotive collectibles. An engine wanting rebuild seasonally, that has done three races since its last rebuild, must be considered proportionally. A similar rule of thumb for engine/gearbox rebuilds and other major maintenance expenses is 50% of the actual bill for the item, less wear. The value guide assumes some wear. We feel that this is adequately considered by starting at 50% vs. 100% of the recent maintenance expense. In short, all items have a “life span” in racing, and a buyer must determine at which point in the “life span” each component is. Consult a professional. Ask about the desirability of components used, typical costs for those items and maintenance schedules/costs.
History is the second and usually most significant factor. Mustangs are fairly common and, therefore, like our Sprite, good for purposes of illustration. Using two tired but complete ’66 fastbacks, let us compare a recognized period front-runner in the Trans Am championship in 1967 vs. a 1967 also ran. One is $10K, the other $50K. Components in the front-runner are certainly better, but all need rebuilding in both cases. The big value difference is history. The front-runner is probably only slightly over priced. A factory team car, or the actual series champion, would add another sizeable ramp up. No percentage roles are possible, but ask around. If the experts concur, you’re safe.
Conclusion
This may all seem very complex. It is not. It is a small world in vintage racing and collector cars in general. Ask for copies of the records and the names of technicians involved. Talk with them. Talk with other enthusiasts about the car and driver. Hire a professional to evaluate and survey the vehicle. Talk to sanctioning body personnel. Spend a little time and some money. Educate yourself as much as possible and always confirm Provenance. It is time and effort well spent. Value guides cannot and were never intended to account for exceptions. They are constructed for the “norms.” “Norms” in the arena of collectibles are meant to be broken, almost by definition. Each car is unique and should be considered on its merits. Some D-types are worth $2+ million, and some Triumph Spitfires are a “deal” at $25K. There is at least one historically significant lightweight E-type Jag with over $1 million invested in purchase and restoration. Are these cars worth it? I suspect the experts would say “yes.” These cars don’t conform to the norm, but if you are rewarded by fast, reliable performance, ownership of a vehicle you truly enjoy, and an appreciating asset you enjoy, it is all very worthwhile.
