As the first great generation of car collectors moves on in years, numerous automotive treasures are being held in a state of mechanical hibernation. Since these older enthusiasts may no longer drive or care for their collection, many prized classics are being stored inside garages and other long-term storage facilities around the world. To keep the hobby moving forward, these retired collectors need to consider a plethora of factors before determining the future of their collection.
As the principle of Hyman Ltd. Classic Cars in St. Louis, Mark Hyman has counseled collectors and families for almost two decades on properly handling their car collections. To provide enthusiasts with general “automotive estate planning” advice, Hyman is offering the following suggestions to consider before determining a collection’s future:
Determine you and your family’s current/long-term goals and motivation.
Do you still want to be involved in the collector car hobby? Do you want to keep the collection within your family? Does your family have a passion for collector cars? Do you want to sell or donate the collection to an established museum or charity?
“There are always emotions involved with memorable cars and these emotions must be considered when determining the correct course of action,” said Hyman. “Many car collectors are no longer as active in the hobby as they once were, therefore it can be very difficult for these inactive enthusiasts to make numerous decisions about their collections.”
Research the value of the cars or collection through auction results, collector websites or by consulting experts in the field. Utilize the estimated value to verify the proper insurance level.
“Automotive collections should be appraised every five years for the up-to-date value and proper insurance level,” said Hyman. “Collectors should then consult a family attorney to be sure the vehicle titles are being held in the appropriate entity or trust.”
Investigate the history and pedigree of the individual cars in the collection.
If a vehicle has special features, upgrades, or a significant history of collecting or racing, its value could be substantially increased. By utilizing an agent with a proven track record, sellers could even further enhance their asking price.
Address the mechanical and cosmetic condition of the car or collection.
After years of sitting in storage, collector cars deteriorate in many ways. But some vehicles only need minor cosmetic and mechanical refurbishments for a big return on investment. Before fully restoring cars, collectors should determine how much time and money they can or want to put into the restoration. To make the investment worthwhile, collectors should not spend a lot of the appreciated capital during the restoration process.
“Instead of doing the research and refurbishment themselves, many enthusiasts rely on professionals to sell their collections,” said Hyman. “Even experienced hobbyists have difficulty deciding what sales venue and degree of restoration is right for full resale potential. An independent advisor, appraiser or specialized dealership can be invaluable when determining the appropriate actions to take.”
Select an appropriate venue with the help of a qualified advisor or get recommendations from other collectors.
“The most experienced and qualified consignment companies can watch over the sales process and look out for the collector’s interests,” said Hyman. “A good advisor will provide references and past examples of similar recommendations.”
Hyman Ltd. Classic Cars, founded in 1989, is a group of automotive professionals who share an intense passion for vintage motor cars, and who search the world to acquire rare and unusual cars of exceptional quality. The company specializes in advising the acquisition and sale of pre-war classic automobiles, post-war American collectible cars and both pre- and post-war sports cars, including complete collections and caters to discerning automotive enthusiasts, dedicated collectors, and international museums. Its 35,000 square-foot facility is centrally located in St. Louis.
For more information about Hyman Ltd. Classic Cars, or to review an online catalog of its current selection of vehicles, visit www.hymanltd.com or call 314-524-6000.
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