Danny Stewart, who owns Durango Autoworks Inc. on Florida Road, has profited from collecting and restoring classic cars. But he is the first to admit that restoring classic cars as strictly an investment opportunity isn’t for everyone.
Although collecting and restoring cars offers personal satisfaction, Stewart says it can be an expensive endeavor for someone without the mechanical expertise to restore vintage vehicles.
A buyer’s initial investment can range anywhere from $5,000 on up to seven figures, said Stewart, who owns three classic cars; a 1955 Volkswagen, a 1963 Imperial convertible and a 1966 Mustang convertible. Most of the cars available for restoration tend to range between $20,000 and $50,000, but they can easily fetch a significantly higher amount than the original investment after restoration, he said.
His 40 years of experience in the automotive industry and his knowledge of classic cars has allowed him to pick up a few tips about how to make his hobby profitable, too.
“You really can’t own a car like that unless you just really have some sort of passion to enjoy them and to tinker with them,” he said. A classic car would not be the car to use to drive to work everyday because high mileage decreases the value of the car, he said.
“They’re not something you can get in and use for transportation on a daily basis.”
Not driving them – especially in adverse weather – can also save on insurance costs, Stewart said. Stewart pays $300 a year to fully insure all three of his classic cars compared to $600 a year for his everyday car.
Maintenance is also less expensive once the cars are fully restored because of the fewer miles they are being driven. Stewart said, on average, maintaining a classic car costs about $500 a year depending on the needed work.
Not only can classic cars be used to yield a profit, but they can be used to promote local businesses.
Melissa Gibbs, owner of the Crazy Horse International Salon and Training Center on East 14th Street, has used her pink 1960 Thunderbird to promote her salon. She used the car to help draw in customers for this month’s breast cancer awareness campaign.
Gibbs’ 1960 Thunderbird is a sought-after car, she said. She explained that the 1955 to 1957 models are the most desirable for collectors, although her 1960 model is worth a significant amount. A lot of the desire behind the ’50s and ’60s cars is nostalgia. Once you begin collecting, you begin to realize which models are most profitable, she said.
Also, the fewer the owners, the higher the value, Gibbs said.
She sees classics as a profitable investment, noting that she’s made about a 28 percent profit selling her restored cars.
“We always joked that we invest in classic cars because with the stock market you aren’t guaranteed a return, but in classic cars you generally are” she said.
The market for classic cars tends to be really big overseas, she noted. A lot of countries beg for American classic cars because they are no longer made, Gibbs said.
She said one tip for making a significant profit would be to find an overseas buyer. Sweden and other European citizens desire American classic cars for historical reasons.
Gibbs recently sold her latest car, the 1960 Ford Thunderbird, to the original family who restored the car. She recalls it being an emotional and nostalgic moment for the buyers.
Part of the joy of owning these types of cars is sharing the experience. Many classic car enthusiasts enjoy attending car shows and sharing stories.
The Durango Old Car Club has been around between 30 and 40 years. It hosts a wide spectrum of people who all share a love of classic cars. Tim Blake, long-time member of the Durango Old Car Club, says that one of the advantages of owning a classic car is that it provides a touchstone to the past. Blake and his son have worked on several vintage cars as a way for them to develop common interests and pass on techniques and philosophies, he said.
For the club, it’s not just about owning cars, it’s also important for it to have a philanthropic involvement with the community. This year, the club donated $10,000 to the Mercy Hospice Foundation, he said.
Older classic car collectors often seek the first car they ever had, or a family car they were fond of as a child, Gibbs said. Also, having spectators see the car cruise by is a thrill of its own.
“I’ll never forget driving down Third Avenue one day and a lady yelled out her window: ‘That’s the coolest car in Durango, Oh, my God.’” Gibbs said.
vguthrie@durangoherald.com
