So Less Than the Expenditure

July 9, 2022 Longrider General News, Transport 10

Renovating old vehicles is interesting, but unlikely to be a goldmine as I discovered with a classic BMW. When I sold it on, it went for less than the cost of the restoration, so you do it because you want to, not because it will make money.

But despite its poor condition, there was no shortage of interest when it went under the hammer at Brightwells of Leominster in Herefordshire, where it sold for £109,536.

Experts say the new owner could be looking at splashing £150,000 on restoring the 60-year-old car but that when it is complete, it could be worth around £250,000.

So £9,000 less than the combined expenditure, then – and that’s assuming all goes well with the renovation. I wouldn’t touch this one with a bargepole, frankly.

10 Comments

  1. The only person I know that made money out of restoring old cars was someone that restored ORIGINAL Lotus 7’s (I stress the original bit because there are a lot of kit cars that replicate the 7). However, he sold them to Jaanse collectors and exported them.

    That Ferrari will have to have the replacement components hand built and that won’t be cheap without the original tooling.

  2. In many cases it’s a labour of love to preserve history – as we pay museums, National Trust etc to do. In others it’s a gamble on future prices

    I’m pleased people do do it, better than state compelling us to pay as I think we will be soon for RNLI

  3. I agree it is a labour of love, I fully restored a 1973 Mini 1275GT and spent a fortune on it.

    However, it was a vast challenge and learning experience over three years. Shit to drive compared to a modern car though and no aircon in 35C temperatures was no fun.

    Sold it for less than half what I spent on it…

    As for the Ferrari, I can’t imagine that the new owner is going to get down and dirty with it any more than a friend who ‘restored’ a Gull Wing, never got his hands dirty… So the motivation must be to have the car rather than sell it on afterwards…

    • I have to disagree that Minis are shit to drive. Different from a modern car obviously but brilliant fun.

    • @BiC

      Spot on with learning experience that in itself is a challenge and is pleasurabe and of future value. Much better hobby than being a train spotter or sleb infatuated

      Yes, Ingenius Mini is shit to drive, but still a nice car. Same as MGB, rhd Merc 350/500SL and many other pre mid 80s cars

      • Having worked on the railway, I was surrounded by train spotters. It’s a harmless pastime and is very much related to this. A love of transport. It’s just expressed in a different way.

  4. It’s an interesting example of how economics really works, as opposed to how people think it works: you don’t sell something for “what it’s worth”; you sell it for more than what it’s worth to you. And, similarly, you buy things for less than the money is worth to you, otherwise you’d keep it in your pocket. It’s all subjective and relative.

    So, somebody thought £100,000 in his pocket was worth more than keeping a rusty old 250 GTE in a barn, and its new owner thinks owning a fully restored 250 GTE is worth more than having £260,000 in the bank. But apparently most people in a position to buy one won’t spend more than £250k. It doesn’t mean he’s made a mistake, just that he values owning the car higher than having £260k, and they don’t. (I almost said that he values the car more than they do, but that’s not necessarily true. Marginal utility. It really is all relative.)

    • Yup. As I said, I did it with an old BMW R80R. Worth a fraction of what it cost to restore. When I sold it, I needed to raise some cash quickly.

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