There’s no doubt that owning a franchise that specializes in the sale of classic vehicles can be a lucrative business. In order to make the best possible decisions about what to offer for sale, it helps to understand what influences classic car values at any given time. Here are a few factors that you want to keep in mind.
Make and Model
There are certain makes and models that have come to be known as classics for more reasons than their vintage. They were popular when first released, and they remain popular today. You can bet that there are some makes and models that will always bring a better price, while there are others that won’t do as well.
You can look closely at the market and get an idea of which vehicles seem to be consistently in demand. Focusing much of your efforts on those vehicles will go a long way toward pleasing the clientele who look to you for what they want.
General Condition
While a make and model may be in high demand, the condition of the vehicle will also make a difference. For some people, the goal is to purchase a classic vehicle that’s fully functional and does not require any restoration. Others may be looking for something they can buy at a lower price and restore at their leisure.
The key is to set the pricing so that it’s attractive to certain customers in the marketplace. A classic that’s not in the best condition can be marketed directly to those who love to restore vehicles, while those that are in great shape can be called to the attention of those who simply want to add that make and model to their collections.
Special Features
Special features can also play a role in determining classic car values. However, be aware that modifications don’t always increase the market value. Depending on what sort of extra features are added, they may negatively impact the demand and ultimately the value.
The best approach is to focus on classic vehicles that have special features installed by the original manufacturer. Those are likely to be the most highly prized, and something that you can use to cultivate interest in the vehicle.
Current Supply
Demand is not the only aspect that you want to consider. There’s the matter of supply to think about. If there are not many vehicles of that particular make and model currently available, the lower supply will likely mean the ability to set a higher price.
Even so, make sure the higher price is not unreasonable. Doing so will lead many collectors to simply wait until more vehicles of that make and model are available. Given that the greater demand and lower supply may motivate some collectors to put some of their vehicles up for sale, something that could price you out of the market.
If you plan on selling classic vehicles, make sure you know what buyers want, and what the current market will bear. By accurately reading that market, you stand a better chance of making sales and becoming a dealer with an excellent reputation among collectors.
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