FINANCE ENQUIRY

Barn finds – how to finance your dream car.

By Edward Legge | Buying a Classic | 0 Comments

The “barn find” has become so engrained in classic car culture that  prices for untouched, historically important cars has soared over the last few years, putting the combined price of purchase and restoration out of the reach of many. It’s good to know, then, that a barn find can be financed too…

Significant barn finds are becoming rarer and rarer. We’re talking about the type of cars we all dream about owning – Astons, Ferraris and the like. News of a genuine barn find will  spread like wildfire and be plastered across the classic car media faster than you can drop the hood on an E-Type, but there are still cars out there waiting to be found. The current trend towards buying “unmolested” classics for total restoration has driven prices sky high at the top end of the market with the cost of purchase and restoration typically reaching hundreds of thousands of pounds. That said, riding on the back of a strong global market and keen media interest these projects are capable of achieving very high sale prices and often great return-on-investment for owners.

Aston Martin DB5 barn find sold at Bonhams 2013
Aston Martin DB5 barn find sold at Bonhams 2013

So why would you want to arrange funding for a barn find, and how does it work? The cost of purchase is one obvious reason – with buyers willing to pay the sort of money that would get you a reasonable example of the very same car (Example of an Aston Martin DB5 “barn find” sold at Bonhams). Additionally, buyers will need to make an allowance for restoration and remedial work. A high quality restoration on a historic car is one of the key means of realising a worthwhile return-on-investment, so financing a car can mean the difference between having the ability to restore it or not.

As a general rule, to fund a barn find or restoration it needs be of relatively high value when finished. This means that the type of car and its provenance are extremely important – think E-type Jaguar from £70,000 +, Aston Martin, Ferrari all with a decent history and not too many owners. Obviously the key ingredient is that the asset value is proportionally higher than the amount funded. We take care of the valuation side of things and will of course confirm the condition, history and provenance of the vehicle. Of course also we offer absolute discretion so your top secret find doesn’t get bought out from under you. If you’re looking for a restoration project or a car that isn’t currently on the market, get in touch. We’re in the know and you never know what we might turn up for you!

 

 

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