How to pick the perfect classic car

Turn off the TV and the internet. Don’t pick up a magazine or even talk to your mates in the pub. In fact, take any precaution you can to avoid discovering just how much the car you sold years ago (or one very like it) has made in the latest sale of ‘classic’ models.

Hanging onto an object for long enough can make it valuable, but only if at least two other people want to compete for ownership.

What we see in the current classic vehicle clamour is people whose lives have been changed radically, with money they can’t spend anywhere else indulging in cars they may once have owned, or wish they had.

Then there are others who will buy rare vehicles as an investment strategy, which is certainly worthwhile if you hang in there for 30 years or so but potentially risky as a short-term plan.

Fond memory is not the best basis for a buying decision and rushing starry-eyed into a dealer’s yard or auction site is a good way to come away burdened with disappointment and a car that will soon be back on the market.

Research and a decent pinch of scepticism are the armour that every classic car buyer needs before entering the fray, and here the wizened faces around the carsales lunch table have some experience to share.

Classic car ownership is a little like acquiring a new pet. Buying one because it’s cute or because the breed your friend has is well-behaved can spawn all kinds of problems.

So can following the herd and engaging in a contest to own something that might currently be in fashion but can also fall rapidly from favour.

The best tactic is to find a car that fits easily into your lifestyle and your budget, that can be enjoyed without hours of prep and which won’t bring on a panic attack if you need to leave it out of sight in a public car park.

Consider too if it will be used purely for recreation, perhaps including an occasional club day at the local race circuit? Or might it need to fill the role of second family vehicle?

If so, the compact ‘hot hatch’ that you idolised as a teen won’t be well received by cramped rear seat occupants. Go the other way and choose a massive US-made limo from the 1960s and quite likely it won’t fit into your garage.

Classics that will find themselves regularly battling the peak hour traffic need to be durable and fairly fuel efficient. They will also quickly lose their appeal on scorching summer days if they don’t have an efficient cooling system and an air-conditioner.

Once you settle on a list of possible purchases, the hard work begins.

First up you need to find an example of each, and here carsales can deliver a wide variety in many locations. While buying a car sight unseen is possible, you need to have driven at least one and be familiar with the particular model.

You also need to factor in the cost of a professional pre-purchase inspection, such as RedBook Inspect, and transport from the vendor’s location to yours.

When test-driving an older model – unless you date from that era yourself – the dynamics can be very different from those displayed by a modern vehicle on the same journey at similar speeds.

The older one will likely be louder, slower and handle differently. Brake performance could be seriously inferior, so give yourself extra room and time to stop.

Some older models will not have seat belts and some will be from an era when belt mounting points weren’t installed. These are wisely avoided by anyone buying classic family transport, even if you and an adult passenger up front are prepared to accept the risk.

Remember to factor in the standing costs of older-car ownership. These hopefully won’t include depreciation because older vehicles will generally hold their values in the medium-to-long term.

However, it will involve interest on any money you borrow for the car, annual registration, insurance and maintenance.

Savings here can be made by selecting a model (usually one that is 30+ years old) which qualifies for a reduced registration charge and lower insurance premiums.

Even if your classic is used sparingly and covers minimal distances, it still needs regular maintenance to ensure the value isn’t eroded by neglect. Changing lubricants, coolant and brake fluid based on their age not kilometres recorded is essential, as is checking tyres for age-related deterioration and making sure the electricals aren’t being attacked by vermin.

Don’t be frightened of cars with big engines and appalling fuel consumption. The typical classic vehicle travels fewer kilometres in a year than regular vehicles record in a month and fuel going stale in the tank will be a bigger problem than the cost of filling it.

Parts availability and the expense of bringing items from overseas suppliers can add significantly to ownership costs, so check what can be obtained locally before committing to a particular model.

Many of the specialists who worked on older cars are now retired and have closed their workshops. Finding a service centre in your city that deals with your chosen model may be difficult, and sending it interstate for relatively minor repairs is ridiculous.

The specialist vehicle insurance market includes a dozen major participants which can organise comprehensive cover for everything from brass-era veterans to brand-new exotica.

Premiums for older models that aren’t frequently used will typically be very low and normally include features like agreed value cover, salvage retention – which allows owners to keep the wreck as a source of parts – and choice of repairer.

Ten tips for classic car buyers
• Make a list of potential purchases; don’t get fixated on one model
• Buy a car that is going to meet your needs, not just impress the neighbours
• Do your homework; read old road tests and owner comments via online forums
• Don’t buy a model you have never driven
• Check the cost of maintenance and availability of parts
• Verify the history of any vehicle being bought privately
• Shop around for insurance and make sure the replacement value is adequate
• Use your own money if possible; avoid borrowing to fund a classic
• Have somewhere secure and dry to keep your car
• Buy a car you like, not one you think might make you money

The majority of classic cars are sold by private vendors and when buying privately it is essential to obtain a Register of Encumbered Vehicles (REVS) clearance.

Vehicles bought from a dealer or licensed auction must by law come with clear title and be free of any financial encumbrance.

Buying unregistered cars is fraught with danger unless the vendor provides utterly convincing proof of the car’s identity and their right to sell it. There is no worse scenario than fronting up at the Motor Registry with your newly-restored ‘bargain’ only to be informed that the car on which you’ve lavished a raft of time and money has been listed for years as stolen. It happens.

Negotiation is something that scares many people – both buyers and vendors.

Negotiating with a private vendor will often involve trust and emotion. Convincing a doting owner that you will provide their cherished vehicle with a good home can work more effectively than hard-nosed bartering.

Cash works wonders when plonked on the kitchen table.

If you need to arrange finance or have the car inspected before completing the purchase, leave the lowest-possible deposit. If you change your mind or the car fails its final inspection, the vendor may not be keen to give you a refund so don’t hand over more than you can afford to lose.

Finding a few faults with the vehicle will help your chances of negotiating a decent discount. Dealers may offer to have the items you’ve spotted ‘fixed’ but unless they relate to roadworthiness, opt for a cut in price and have the work done by a repairer of your choice.

Cash that is earning minimal interest or the proceeds from something you sold are the most cost-effective ways to fund a classic acquisition.

If you need to borrow money for a car that isn’t going to earn its keep through regular use, consider the effect on your long-term financial position.

Despite claims made by some vendors, not all classic models are ‘investment opportunities’, so don’t outlay more than you can afford to lose.

Subject to professional advice, quality vehicles can be included in personal superannuation schemes. However, these arrangements are subject to stringent rules and such investments will need to be stored, not driven.