Insurance for Vintage Classic Cars

Depending on your planned usage for your new collector, there are several options for classic car insurance. Although getting the right insurance is not complicated, there are some things that you should be aware of that are not so obvious.

Many owners make the mistake of calling their current insurance agent and having them underwrite a standard policy. Seems reasonable enough and hassle free, right? Just roll it under your other auto insurance and take advantage of their “multiple autos” discount. It is estimated that the majority of vintage classic cars are in fact insured this way and those owners are in line to pay for it, in more ways than one. Owners under this description are paying higher premiums and getting less coverage.

The danger with this approach is that the policy your agent gave you is probably the same as your current vehicle’s policy. Even if your current vehicle is a high dollar car, one thing that needs to be considered is; is it appreciating in value? Hypothetically, if you own a newer car for 3-4 years and need to collect insurance in a total loss due to an accident or theft, the payout will be based on the depreciating car value, often based on Kelly Blue Book values for the year, make and model of your car. On the other hand, if you have a beautifully restored 1955 Chevy Bel Air 2-door hardtop stored in your garage, do you think it will be worth more or less three years from now? Hint: more, probably a lot more!

Do not use a standard insurance plan

Classic car insurance has been available for years. You will need to check with your provider, but usually there are some minimal driving restrictions relative to mileage, say less than 5000 miles per year, that apply as a rider on the policy for a vintage classic car. Many will require that you have a day-to-day car already registered so the classic will not be used for routine transportation to and from work or doing daily errands.

Know the various policies

1. Stated Value Policy. This type of policy lets you declare the value of a car that is greater than its depreciated book value. This is better than a standard policy, but will only pay up to the stated amount and does not factor in appreciation.

2. Actual Cash Value Policy. This is more like a standard policy where the value is determined on some kind of depreciated value. With this policy, the insurance adjuster decides what your car is worth. Hopefully they are having a nice day! Not recommended if you are using a insurance company that normally doesn’t cover classic or antique autos.

3. Agreed Value Policy. This is where you and the insurance company agree on the value of the car. There is no depreciation associated with the car. In addition, the agreed upon value can be modified during the life of the policy to reflect increases in value. This way, you are 100 percent protected and assured that you will receive the full value for your car should a loss occure.

Other considerations

• Many classic car insurance policies have minimum age restrictions, 25 to sometimes 30 years old. Younger drivers are not permitted.
• Not all classic car agents are created equally. Make sure you check out their customer service and feel confident that they know replacing a windshield on a 1967 GTO will probably be more expensive than your everyday car.
• Make sure your carrier is licensed in your state.

In summary, make sure you have your vintage classic car covered by one of the above policies and not a standard automobile policy that you would use for your teenagers ’98 Honda Accord. While the liability coverage may be the same, the coverage for your beautifully restored ’55 Chevy may amount to peanuts and not the street value of such a collector.

Buying Vintage Classic Cars on eBay

If you are considering purchasing your classic car on eBay Motors, or on one of the other web auction sites, you are not alone. eBay is now considered to be the dominant force in vintage classic cars and associated parts sales. In 2006, eBay reported the following:

• On average, one car is sold on eBay motors every minute.
• More cars are sold on eBay before 9:00am than an average dealership sells in a year.
• eBay Motors was ranked as the #1 automotive website.
• There are more than 2.8 million different car parts available for purchase on eBay Motors at the time this report was written.
• Our last check showed 46,591 cars & trucks for sale.

As impressive as those statistics may be, it can be as expensive as it is exciting to buy a classic auto online unless you prepare for the purchase properly. There is much to learn in order to effectively buy a beauty instead of a beast on eBay Motors, even if you are a veteran “eBayer”.

In order to be effective in your bidding, we recommend a reliable high speed computer and a high speed internet connection such as broadband. You can use a dial-up connection but, for those crucial last minute bids, you will often find yourself out-maneuvered by the competition.

The very first step in buying a collector car on eBay is to register as an eBay member, if you haven’t already done so. There are several advantages of registering before you start searching through eBay’s listings, some of which include:

• The ability to “watch” auctions without bidding and request email notification for your watched items. This simply means you can add auctions to your auction watch list and you will be sent alerts via email about those auctions (i.e. auction endings, bidding activity, etc.).
• The ability to save your favorite searches from which eBay will email you new search results as they are listed.
• The ability to research past or expired auctions to make informed buying and selling decisions by comparing the history of like items sold on eBay with the current auctions.

If you haven’t bought or sold on eBay before, there are many things to consider before you jump right in and try your hand at buying items as expensive as vintage classic cars. It is recommended that you consider practicing your bidding technique by bidding on low priced items that you may need and would buy anyway, just at a physical store and not online. This way, if you happen to make a mistake, it is not an expensive one and it becomes a cheap education in the art of bidding.

Auctions are often an emotional experience. It isn’t improbable that you can become emotionally wrapped up in the process and end up spending much more for an item simply because you refused to lose! This is not uncommon and happens with almost all new auction participants with little experience. This is where a strict discipline is needed unless you have a bottomless supply of money and price really isn’t a factor. Sometimes you will find an item that you just “can’t live without” and it becomes a goal to win the auction no matter what the cost. In most cases, however, you will need to set a limit to the amount you will spend for an item and maintain the discipline it takes to stick to that maximum and not go over. More will be discussed about this subject later.

During your practice bidding on the low priced items, there are some habits you should develop that will aid you when the price is in the thousands of dollars. One of those habits is to, if the pictures and description of the items look good, e-mail the seller with any questions you can think of so that you can gain experience using the messaging tool in eBay. This is done within the eBay site by sending a message to the seller or by requesting a more detailed description and additional photographs. This test will ensure that your computer will be able to accept photos and display them for viewing.

As you graduate from small, cheap items to looking for that dream machine, browse or search through the inventory of cars that might interest you. Use the intuitive buttons to navigate through the pages. Then use the listings and headlines to drill down into the auction listings of all the makes, models or years of production that you could possibly want. As you view the listing, there are many terms that may need explanation, such as:

• Reserve: That is the minimum price the seller will accept for the item. You will not always be able to see the reserve price in an active auction. If you place a bid below the reserve, the listing will show that the reserve has not been met.
• Buy it Now: That is the price that the buyer will accept immediately and end the auction with you as the winner. This price is not always a good indication of the reserve price but may be close to it.
• Best Offer: This feature lets a buyer make an offer to the seller for him or her to accept or decline.
• Meet the Seller: Under this heading you can read the feedback/comments left by other buyers who purchased from this seller. One note, always try to deal with sellers that have a high number of positive feedback entries and few, if any negative feedback entries. These comments are gathered voluntarily on the performance of buyers and sellers in the auction process and are recorded for you to see.
• Buy Safely: Review the Vehicle Purchase Protection; it’s an excellent and necessary insurance against fraud or misrepresentation of up to $50,000 per vehicle. The Vehicle History Report is only available for cars produced after 1981, so if the model you are looking for falls into that category, the more you know about the car, the better.

Once you find a vehicle that you are interested in purchasing, you should obtain information about the item’s history, features and current condition. Read the description of the vehicle thoroughly. The seller should elaborate on all the details of the car such as; the condition, terms of sale, any guarantee and so forth. You should also expect there to be plenty of pictures of the vehicle including the engine compartment, trunk, interior, exterior and undercarriage. If the seller has disclosed any blemishes, close up pictures of the blemish should be included. It is critical to understand the title status of the vehicle and any issues there may be with liens or lack of documentation that would hinder registering the vehicle. If the car has been restored, ask for any pictures taken before, during and after the restoration. If you have a question that isn’t addressed in the description or by reviewing the pictures, contact the seller by clicking the “Ask seller a question” link at the top of the listing. Don’t wait until the end of the auction to ask your questions, you don’t want to be waiting for an answer to a critical question as the bidding comes to an end.

There are some “red flags” to look for in certain listings that should alert you to investigate the seller and the vehicle carefully. While buying a vehicle through online auction sites is a great way to find what you’re looking for, buyers should exercise the same cautions as when they buy anything else on the Internet. Unfortunately, there are scam artists that use the online auction medium to take your money. However, it could also be an experienced eBay seller that has little knowledge of classic cars that could end up harming you financially. This is what you should look for:

• Ask the seller if you can see the vehicle in person. Someone who doesn’t actually have the vehicle in his or her possession will almost certainly refuse. Even if you have no intention of paying a visit, just asking to see it could tell you a lot about the seller and their intentions.
• Watch out for auctions that feature what looks like stock photos or photos from brochures. Anyone with a real car to sell should be able to take a picture of it. This tactic is often used to represent a car that is in sub-par condition and the seller knows won’t bring much of a price if it is seen.
• Beware of any seller who will only accept a wire transfer for payment. It can be a seller who will offer a vehicle for sale that they don’t really have; they often just post a photo they found somewhere. The sellers often indicate that they are located in Europe and insist on a wire transfer, such as Western Union, for payment. Once the buyer sends the money, the seller vanishes, never to be heard from again. If at all possible, use PayPal or your credit card. Both of these services provide some amount of fraud protection for your purchases.
• Beware of a seller who says the vehicle is in another country but offers to pay the shipping to the United States. While this can an appealing offer, especially for a car purchase since it can get expensive to have a car shipped to your location, it is another tactic often used by scam artists in other countries.
• Watch out for a vehicle that is offered at a price that seems much too inexpensive for the make, model, and condition of the represented car. Statistically, cars sold over Internet auctions will go for about 10% less than through a dealership, but a $20,000 that car is offered for $10,000 should set off alarms to beware immediately. Like the old saying goes, “If it seems too good to be true, it probably is!”
• Check the seller’s transaction history to see if they have a positive feedback record of actually selling classic cars. If the seller is listing a 1968 Camaro Super Sport but has a history of only buying or selling crocheted sweaters, you may want to look elsewhere for your dream car.

Below are some strict rules to follow once you determine you are ready to start bidding on a vintage classic car:

1. Determine what you are willing to pay and how much you can afford.

All bids you make on eBay are binding; therefore, you should make sure that you know how much you can afford. You will want to determine if the seller’s price meets or exceeds the car’s market value. A great way to determine a realistic price is to look at final sale prices for similar cars sold on eBay. You can check market values in publications such as the Old Car Buyers Guide or NADA’s Classic, Collectible, and Special Interest Car Appraisal Guide & Directory. These price guides typically rate a cars value using 6 categories according to conditions that range from pristine to a rust bucket.

2. Know your total costs and how you’ll cover them.

When bidding for or buying a classic car consider other potential costs such as title, registration, state taxes, and any shipping costs. Refer to your state’s Department of Motor Vehicles Web site for guidelines on taxes, title transfer, and registration. If the seller isn’t local, make sure you know how you will pick up the vehicle or arrange shipping if you are the successful buyer. Sellers can help arrange shipping, but buyers usually pay for it. eBay will require you to have a credit card on file if you are bidding over $15,000 for the automobile. Don’t wait until the last minute to provide this information. If you bid on a car that exceeds this limit, you will be notified at the time of your bid and will not be able to proceed. This could cost you the opportunity to grab your dream boat. eBay doesn’t use your card information to charge you for the item, they use it to confirm your identity; a safety measure to help protect both buyers and sellers from potential high-bidding fraud and bid rigging.

3. Review the sellers required payment methods and terms.

You can expect to pay an installment payment at the close of the auction and the remainder of the full payment within 7 days. If you want to make monthly payments, you will want to have financing in place before hand. eBay is equipped to help you get the financing that you need which you can research in the eBay Financing Center. With this tool, you can arrange financing before you bid or calculate monthly payments for what you estimate will be the total loan amount.

4. When you are ready to bid, click the bid button on the car’s auction page.

You can open your bidding with a “scouting” bid to see what the competition does or simply enter the maximum amount you’d be willing to pay for the car. Your maximum amount is kept confidential from other bidders and the seller while the eBay system bids on your behalf, using only as much of your bid as is necessary to maintain your high bid position. The system will bid for you up to your maximum amount while other bidders make their bids and it never exceeds your maximum. If another bidder has a higher maximum, you’ll be outbid and eBay will send you an automatic notification via email.

5. Closely monitor the bidding process.

If the competing bids exceed your maximum amount early on, you may want to consider if this make or model, in the condition as advertised, is really in your budget. This is where the discipline to stick to your maximum amount that you are willing to pay comes in. But, if the bidding looks favorable to you, allocate time to be near your computer during the close end of the auction. Often times, bidders come out of the woodwork towards the end of an auction. We call these bidders “snipers” because they often try to snipe the auction at the last minute. If, at 10 minutes before the auction is scheduled to end, you are out bid by $50.00, you can then decide to increase your maximum bid. Again, you should keep your emotions in check and only increase your new maximum by a comfortable amount. We would hate to see you lose a great car for $50.00 but will not recommend bidding over the fair market value of a car or bust your budget.

Should you be so lucky to win an auction and you have been notified that you are the winning bidder, contact the seller to inform them of how you plan to execute payment and clarify the delivery details. If you haven’t seen the car personally, schedule a date to inspect the vehicle yourself or through a broker prior to the date payment in full is due. You may find that a plane ticket or broker’s fee are less expensive that the return shipping costs of a vehicle that doesn’t live up to what the seller represented. If the car is as advertised, you now have the opportunity to take your first road trip in your new acquisition.

When picking up or taking delivery of the car, have in hand, print outs of all the pictures from the auction, any email correspondence, and the description of the car’s condition provided to you by the seller or from the auction page. Personally inspect that everything is as advertised with the car. If you are picking up the car from the seller and find a problem that was not disclosed or misrepresented, you can refer to the documentation that was provided by the seller and either negotiate the price or ask for the deposit to be returned.

If the car has been shipped to you, inspect it before it is unloaded from the transport. Damage can occur as it comes off the transport truck and any repairs required would be the responsibility of the shipper. You and the shipment company’s driver should inspect the car together and note any damage that wasn’t disclosed in the auction documents. If you do find problems with the car, take pictures and document everything. We recommend using a digital recorder during this process in order to capture all your thoughts without having to worry about writing it all down expeditiously. If, after you have accepted the car from the shipper, the vehicle has issues during a road test, take it to a qualified mechanic and have them document their findings. If then you should decide that the car is not as advertised, you need to put together a factual and non-emotional accounting of why it is so by referring to all your recorded notes and pictures. You should then email the seller and negotiate what actions should be taken.

One of the best features of buying on eBay is that a seller’s reputation is displayed for all to see. Like in any business, having an unhappy customer is not desirable. Having an unhappy buyer that can post his opinion in your feedback for everyone else to see is even less desirable. Subsequently, you will find that most sellers will work with you to make the transaction acceptable for both parties. Again, keep your emotions in check and if you find that you just can’t come to an agreement with the seller on how to rectify any problems, utilize the resources provided to you by eBay, PayPal, or your credit card company.

All-in-all, the majority of eBay transactions go off without a hitch. You should always exercise caution when it comes to any purchase that involves large sums of money and if you follow the rules we have outlined above, you should have little if any problems finding and buying a vintage classic car on eBay.

Vintage Classic Car Pre-Purchase Inspection Checklist

Whenever you are considering buying a car, online or in person, you should use some sort of checklist to make sure you check everything that is important when making a purchase like this. Here is a 90 point inspection check list that you can use as a guideline for your inspection of any car, whether it be a vintage classic car or a newer previously owned car. Try to resist making an offer for the vehicle until each checkpoint has been evaluated thoroughly and each questionable item is then discussed with a trusted mechanic. When you a person makes a purchase such as buying a classic car, many emotions are stirred up in the process. Memories of a time long past or excitement of the thought of finally getting to own your dream car can often interfere with wise and logical decisions. If you follow a strict checklist like the one below, you may avoid making an impulse buy that costs you more money then you intended to spend repairing a car that you shouldn’t have purchased.

Here’s How:

1. Visually inspect the exterior.
   • Check everywhere for rust (trunk, floor boards, under interior carpet if possible, rocker panels, etc.)
   • Visually inspect for repairs or damage (examine engine compartment, frame, trunk compartment, etc. that are out of sight of the average observer)
   • Check body panels for dings, dents, alignment, mismatched paint and overall paint condition
   • A magnet can detect any filler used in repaired dents (be sure to cover the magnet with a soft cloth if you are going to rub it on the car’s surface. The last thing you want to do is scratch the paint of a car you don’t own).
   • Inspect for chrome damage, rust, alignment and improper repairs (examine any tube like pieces closely as these areas tend to collect dirt and rust from the inside out).
   • Open and close doors/hood/trunk/tailgate for proper operation, alignment, and solid latching.
   • Inspect grill/trim/molding for bends, dings, missing parts, broken clips, and proper attachment (double sided tape is a common fix used for things like loose trim, look closely).
   • Inspect the windshield, side, and rear windows for damage, pitting, repaired chips, wiper marks and/or cracks.
   • Check rear view mirrors for condition and hinge/ball-joint operation.
2. Under the hood.
   • Check for oil leaks from underneath as well as inside the engine compartment.
   • Inspect air filter for oil and dirt.
   • Check the oil for water,sludge, color and clarity, as well as level.
   • Inspect timing belt or chain if possible.
   • Check all fluid levels including brake fluid, automatic transmission fluid, transfer case and differential fluids, power steering fluid, etc.
   • Inspect belts for wear, cracking and fraying.
   • Check hoses for cracks, brittleness, and repairs (black electrical tape isn’t easy to see on a black hose line).
   • Inspect wiring for connections, cracks in insulation, loose or unconnected wires, etc.
   • Inspect engine mounts for condition of rubber.
   • Look for water pump leaks.
   • Pressure test radiator cap and check antifreeze.
   • Look for fuel pump leaks.
   • Inspect fuel filter condition and cleanliness.
3. Starting the car.
   • Ask to start the car yourself to experience, first hand, the difficulty or ease with which it turns over.
   • Position a rear view mirror so that you can check for smoke coming from the exhaust. (it is not uncommon for an older motor to smoke initially but this should clear after warm-up).
   • Listen to the engine idle quality when cold and when hot (pop the hood for this so as to limit the insulation of sound by hood and firewall).
   • Rev the engine. Is it smooth? Does it return to idling RPM quickly upon release of throttle? Document any noises you might hear.
   • Keep it running until the engine is hot and check for exhaust smoke again at idle and when revving the motor.
4. Check to make sure all interior/exterior lights are operational.
   • Check the head lights: high and low beams.
   • Check the tail lights for proper operation.
   • Make sure the brake lights function properly.
   • Check the parking lights (now referred to as driving lights) for proper operation.
   • Make sure the hazard signals function both front and rear.
   • Inspect the back-up lights for proper operation when in reverse.
   • Test the turn signals, left and right, front and rear.
   • Check the license late lights.
   • Check any fog lights (if applicable).
   • Check the interior lights (dome and floorboard).
   • Dashboard lights (speedometer, oil & alternator indicators, turn signals, radio, etc.).
   • Check for cracked, loose, or clouded lenses.
5. Road test the car.
   • Insist on driving the car and not riding. If the seller won’t let you drive for “insurance” reason, end the transaction because he is most likely hiding something.
   • Inspect engine performance and acceleration (from a standstill, try to accelerate quickly and note any stall or hesitation in the motor).
   • Listen for engine noise at high/low speeds.
   • Listen for automatic transmission/trans-axle/transfer case (if applicable) noise.
   • Does the automatic transmission shift smoothly and without slippage (performance transmissions may shift more firmly than a cruiser would).
   • Listen for drive axle and transfer case bearings or gear noise/vibration.
   • Check the manual clutch for engagement, chatter or slippage.
   • Test the steering for responsivness/smoothness/play.
   • Test brakes for effectiveness/operation/noise/pulling.
   • Check gauge operation; Speedometer/Tachometer/Odometer.
   • Document temp/oil/battery gauges when hot and cold.
   • Check the suspension on a rough road.
6. Inspect the interior.
   • Are there seat belts installed and. if so, are they operational? (most states now have mandatory seatbelt laws no matter how old the car is).
   • Test audio/alarm/speaker systems (if applicable).
   • Test heating/ventilation/AC/defogger/defroster (if applicable).
   • Is there a clock and if so is it keeping accurate time? (not a deal breaker, just something to look at).
   • Check the horn (required by state law for all road worthy vehicles).
   • Inspect the cigarette lighter and any power outlets for condition and operation (if applicable)
   • Inspect glove box/glove box light/hinges/latch or lock (if there is a lock, is there a key to go with it?).
   • Inspect armrests/console for condition, attachment, and operation (are all buttons, levers, switches, and knobs present?).
   • Is steering tilt/ignition lock operational?
   • Check rear view mirror condition and operation (look at the attachment to the windshield, is it loose or show any signs of replacement?).
   • Check fuel filler door release (if applicable).
   • Check that all door handles operate properly and without excessive force.
   • Inspect interior trim/carpet/floor mats/door panels/headliner/sun visors for cracks, tears, or patches.
   • Make sure that the automatic/manual door locks are functional with knobs in place (if applicable).
7. Inspect all leather/vinyl/material.
   • Check the condition of seat upholstery for wear/rips/cracks/fading/stains.
   • Check the dashboard/door/headliner for splitting, tears, or water damage.
   • Inspect sunroof/moon roof/convertible top for water leakage and weather seal condition.
   • Inspect convertible top condition/operation/fit (if applicable).
   • Check convertible top boot (if applicable).
8. Kicking the tires.
   • Inspect tires for correct size and pressure as well as the tread depth remaining on the tires.
   • Check the tires for abnormal wear which indicates poor alignment.
   • Inspect condition of valve stems.
   • Do all the tires match?
   • Does the spare match or even present?
   • While you‚Äôre checking the spare, inspect luggage compartment for rust.
   • Is there a jack or tools that should come with the car? (when a car is presented as completely original, these items should be present if they were originally included with the car).
9. Don’t forget the car’s other rubber parts
   • Check windshield wipers condition and operation.
   • Inspect interior and exterior rubber trim for splitting, tears, separation, or shrinkage.
10. Ask to see all paperwork and documentation.
    • Make sure the VIN# matches other VIN#s on the vehicle and the paperwork (originals only/no alterations or copies).
    • If the car has been restored, ask for any pictures that the seller might have taken before, during and after.
    • Check the service history for repairs, oil changes and scheduled maintenance (ask the seller who services the car and make a call to that garage)

Tips:

1. If at any time during your inspection the seller tries to point you in a different area of the car or wants you to take their ‚Äúword‚Äù that something is in good working condition, that’s a signal to look more closely. Only when you have completed a checklist like this will you have a good understanding of the car‚Äôs imperfections.
2. Carry a digital recorder and digital camera with you to provide yourself an easy way of documenting any thing of interest for review later. Pen and paper work fine but often times, you are moving through the car so quickly, you don’t have time to take accurate notes. A digital recorder is an easy way to record all of your thoughts, good or bad, without having to worry about shorthand notes you won’t be able to translate once you get back to you home or office.
3. Make copious notes on everything and discuss what you find with a trusted mechanic. He can then provide an estimate on any repair costs that you might incur in order to assist in your negotiations with the seller.
4. Beware of the “I have another guy coming to look at it this evening, and he sounded pretty interested” ploy. This is an attempt to get you to “buy it now” and you should remain disciplined and not make an emotional decision to buy the car in order to prevent losing the opportunity. If you are interested in the car and the seller tries this tactic with you, tell the seller you want the car but need to draw your money out of the bank and it will take a day or so to get at it. This should give you enough time to consult with your mechanic about any outstanding items that you may have noticed and come up with a fair price for the car or truck.
5. Try not to make any decision to purchase a car without first stepping away from it and giving it some real logical thought. Go have a coffee or some lunch and mull it over for a while. Once you step away from the situation and give your emotions a chance to settle down, you will be more able to make a good and informed decision.