Trouble selling rat rods???

[mikec4193]

So I made some changes in my life this summer...I started out with a garage full of projects...

1) I had a totally rebuilt (with patina) 1947 Willys Jeep, had over $7,000.00 into it...I got $4,200.00 for it..

2) Had a 1953 Chevy truck kinda ole school had almost $3,000.00 into it...I got $1800.00 for it...

3) lastly a 1962/62 Willys pickup truck on a 1991 S10 chassis had way over $2,500.00 in it...I got $1400.00 for..

So I do the math...I got in my pocket a total of $7,400.00 but I spent like $12,500.00 on all the projects...is a net loss of $5,100.00 a normal loss on vintage vehicles these days???...

I was really hoping to just break even on the parts...take a loss on my labor as a "something I do in my spare time" type thing...

My next project (1954 Chevy 1 ton) I got for a good price...gonna try and get it running and do just enough to make it driveable...then see what it might be worth...I have learned once you cut into this old metal....everybody wants it to be stock when you go to sell it...

Can anybody share any insight into this ???

MikeC

 

[sawzall]

I have never made a profit on the cars or trucks that I built, I have made profit on the motorcycles. I was a machinist for 30 years this is where I made more profit either making parts or modifying parts for other peoples rides.

 

[Torchie]

From the "For what it's worth file".

Did you have to sell them and take a loss. Or was it your choice to accept the price given?
The old salesman adage is"It's never the wrong price. Just the wrong day"

I have been messing with Cars, Wooden boats, Motorcycles,ect. for a long time (45 years) and if I was to average it out overall I have maybe broke even. Maybe... But I also don't do it to make a profit.
And I don't think that stock or not matters a whole lot in price.
What it does affect is the kind of buyer you will attract.

People that looked at my stuff that was "Modified" tended to be DIY and have about the same bank account as I do. And frankly many of them just decided that they could do the same thing themselves or were just there to look.(Tire Kickers) I had this happen justa couple of weeks ago.

The people that looked at the stock or restored stuff where more like "Tinkerer's". They wanted something to drive once in a while and maybe change their own oil or not. But they appeared to have much more assets. And those people tended to always ask about some sort of "Warrenty " as if I was a restoration shop.
The bottom line for me is this.
I stopped saving receipts long ago. All it does is drive you crazy.
Torchie.

 

[billy]

unless you do a museum quality restoration
NO upgrades
NO modifications.
EVERYTHING exactly factory correct
you will lose your shirt.
i took a big loss when i sold my resto-mod willys jeep.
if i had put about $15000 into that jeep and restored everything absolutely perfectly
THEN i could have made a small profit if all my labor and time was considered free.

 

[sneakysnake]

That's why I buy and not sell, better deals.lol

 

[RustyNCA]

So I made some changes in my life this summer...I started out with a garage full of projects...

1) I had a totally rebuilt (with patina) 1947 Willys Jeep, had over $7,000.00 into it...I got $4,200.00 for it..

2) Had a 1953 Chevy truck kinda ole school had almost $3,000.00 into it...I got $1800.00 for it...

3) lastly a 1962/62 Willys pickup truck on a 1991 S10 chassis had way over $2,500.00 in it...I got $1400.00 for..

So I do the math...I got in my pocket a total of $7,400.00 but I spent like $12,500.00 on all the projects...is a net loss of $5,100.00 a normal loss on vintage vehicles these days???...

I was really hoping to just break even on the parts...take a loss on my labor as a "something I do in my spare time" type thing...

My next project (1954 Chevy 1 ton) I got for a good price...gonna try and get it running and do just enough to make it driveable...then see what it might be worth...I have learned once you cut into this old metal....everybody wants it to be stock when you go to sell it...

Can anybody share any insight into this ???

MikeC

Were they done, or still projects needing finishing?

The way to make anything on them, build something that speaks to people because it is so sweet they figure it's worth a premium simply since it moves them and they have to have it or they know they couldn't do it that way....

I've watched a friend build a number of them and he always doubles his money. Every time he sells one, the buyer almost begged him to sell it.

 

[Gottkts]

I agree with rusty, if it's built with the right look and done to quality their will be money to be made. I have had quite a few offers lately for my sedan that have put me in a 5000+ profit but I'm not ready to get rid of the car. I'm just getting to enjoy it and actually still working some bugs out, and people are still willing to buy with money in hand. I believe if you had your 53 Chevy truck on a s10 chassis that should of brought you a decent profit. The willys would be better off fenderless with a solid front axle laid down on the ground. Most people want low mean looking rides now and they are paying good money from what I see.

 

[donsrods]

Repeat after me........NO ONE ever gets back all the money they put into a car when they sell it. If they do, it is a rare situation. Even the cars you see on Barrett Jackson could not be built for the money they sell for.

That being said, the bubble has burst on Rat Rod sales. There was a time about 5 or more years ago when RR's were bringing crazy money, more than nicely finished cars. Everyone wanted a RR and you could put any piece of crap on Ebay and make tons of money on it. I saw one that was built locally and it was really bad, and it sold on Ebay for over $17K !

But those days are over and it has nothing to do with the economy, it has to do with the RR craze dying down. Some may disagree with that statement, but there was a time when the market was being flooded with finished and unfinished RR's until that demand peaked, then if fell as hard as the housing bust.

I also watched an Auctions America auction on TV the other night and no car that went across the block broke $20,000. There were some really nice cars that sold for unbelievable prices. It is just where things are today in the car business.

Don

 

[Tripper]

In the past i haven't built any car to try & make a profit but have just built them the way I wanted... no way i could *ever* get my $$$ back but I've had a blast doing it & driving them but that was when I had a real job. Now that I'm retired & fixing to start a new build... it's gonna be a different story.... well... we'll see!

In my experience... only people like Don are able to sell their cars & make a bundle... but afterall... he is a famous California builder!!! [ddd[ddd

BoB

 

[donsrods]

Haha, yeah, Bob, I am quite the salesman ! I had about $5K more in my 23 than I sold it for.

Dan and I were just talking about that last night, I sold my 23 in 2 hours because I priced it at what I could live with and what I thought was reasonable. I didn't try to make money on it because for 3 years I used it and enjoyed it, so I paid for that usage.

We have talked about occasionally putting together a car to sell, but we would be paying ourselves about a buck an hour when it is all said and done.

Don

 

[Tripper]

We have talked about occasionally putting together a car to sell, but we would be paying ourselves about a buck an hour when it is all said and done.

Maybe we should start watching "Fast & Loud" a lil more... they seem to be making a killing! [ddd[ddd[ddd[ddd[ddd

BoB

 

[donsrods]

Bob, it's a good thing the tv people are paying them because they don't seem to make any money at those "auctions" they have to hurry up and get the cars built for. Funny how ever car has a deadline of 4 or 5 days to get it done !

We were just talking the other night, all the new car shows are so bad it actually makes Fast N Loud watchable ! And that is saying something.

Don

 

[Old Iron]

I've found some of the same things.
Making brackets and parts, welding rear ends in, stubbing front ends on and building other peoples rides is way more profitable than building and selling.
I always work on my customers rides first.

 

[GJunktionMike]

I've found some of the same things.
Making brackets and parts, welding rear ends in, stubbing front ends on and building other peoples rides is way more profitable than building and selling.
I always work on my customers rides first.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Yep works for me to.

 

[Neto]

I suspect that it has more to do with other factors than the economy per se. A car is built according to the vision & creativity of the builder/designer. The guys that are capable of building their own also have their own creative vision, so unless you just happen to hit the nail right on the head for their likes, there will always be something they would do differently. Plus, the whole time they're looking, they're thinking, "I could do that myself for less". (Very probably not, if time invested is considered, as you all have already said, but they, like most if not all of you, are not thinking of the time it will take, because that is "part of the fun".) The guy that is not capable of building it himself, on the other hand, has no appreciation for the amount of time it takes to do it, and may also not have any real appreciation of the creative side - he may just have a vague sort of "I like it" response, w/o any real idea why he likes it. People don't ordinarily pay for what they cannot appreciate. There may be another class of guys, those who have the creative vision, but simply don't have the time or money to either build or buy, but then they'll never do more than kick tires, anyway. (That's sort of where I'm at, only I will never even act interested in buying someone's rod, because I know I can't follow through. I just hope to someday have the time, tools, money, and space to build one myself.)

 

[DougnDog]

I think most guys build for the fun of it I know I do.

 

[billy]

all i know is
the next old jeep i buy
will be one that someone ELSE went broke restoring!

 

[donsrods]

I think you guys might have hit on another aspect of why RR's went through the roof a while back. Lots of people wanted to get into the hobby but didn't have the know how or equipment to build one. So any time someone put one up for sale there were people lining up to buy it.

There were even a few places selling half finished ones, with the hard stuff done, so the average guy could add some stuff and get it on the road. Problem was, there was some REALLY crappy workmanship on a lot of those cars and I bet a good percentage of them never saw pavement.

I think there was one shop called the Rats Nest that was cranking out cars that verged on being criminal, and he was selling them on Ebay.

Don

 

[smallfoot]

I'm not what I consider a "builder", but as I look around, I've built everything I own which includes a whole bunch of stuff not related to cars or trucks. I don't think I've built anything with the initial thoughts of reselling. I build to get what I always wanted....may not be able to buy outright, but can buy pieces and parts as I move along on the project and have what's in my mind when I finish.

 

[Sniper]

I think you see the same phenomenon happening with most grown up toys, they always cost more than you can sell for. There are exceptions of course, but for the most part that is the way it pans out. The people that have someone else build for them see even a bigger discrepancy between what it cost and what it's worth in the end. To build and sell, you just about have to get the source material for nothing, not have to invest hardly anything into it, and then sell it for a good buck to make a profit. You might get one of the first two, but rarely would you get both. The third is at the whim of the buying public.

In my opinion, the winning combination is how much use you get out of it before selling. Did you get the X amount of dollars out of it to break even? This is a case of 'how much you didn't have to put out' for the privilege of playing with your toy before selling and moving on.

I only managed to come out on the winning side once. I built an airplane, flew it for a number of years and eventually parted it out. Got back what I had in it, which was great and a bit unexpected. Even after figuring out all my cost for maintenance (not much on the plane) for the hanger and airstrip which was a considerable chunk and time involved, I came out ahead considering the aircraft rental I didn't have to pay out.

I see the same sort of deal with this hobby, getting to use it is worth something, that seems to be where we get ahead.