My insurer, Hagerty, suggested that I combine the price I paid for the car with
the documented expenditures of the renovation to come to a "Stated Value". In
my case, I bought the car in January of 2004 for $6500 (an eyebrow raising
price at the time) and pumped approximately $25K into it for the work done -
not including any money for my labor . The Hagerty rep and I came up with an
insured value of $40K for the car. The coverage is $229 per year for comp and
collision with this guaranteed value. The folks at Hagerty were actually very
nice about the whole thing, encouraging me to consider what it would cost to
rebuild if it were damaged as the value rather than what I could sell it for.
I have heard that there are three basic value levels for any car: What it would
cost to replace, What it would cost to get you to turn loose of it (sentimental
value) and what you could sell it for. My guess is that the first two being the
highest will always remain the case for Magnettes.
The only thing I would say about hoping that values are high and will rise for
finished cars is that It will give incentive for more cars to be saved. Only
the truly devoted would put the kind of work and cash it takes to properly
restore a Maggie knowing that it will never get more than pennies on the dollar
cost of restoration. I suppose that is OK if we don't mind that eventually
there will be a dwindling number of Magnettes left that are done, solid and
ready to drive and everything else will have been scrapped, hacked about or
otherwise ruined. I would love to see a good balance between high enough to
encourage cars to be saved and recognize/mitigate the expense to do so and
affordable enough that future enthusiasts will recognize the value of these
cars and adopt them.
Have any of you had a chance to experience a magazine called "Sports Car
Market"? It is a monthly magazine with discussion and analysis of what is going
on in the Auction Market (Think Goodings, Barret-Jackson, Amelia Island etc.).
It gives a wonderful insight into what a wide variety of cars are bring in when
sold and trends that affect either the upward or downward changes in values.
For the past 7 - 9 years growth in the value of most "ordinary" cars has
increased fairly steadily, even in most cases enough to keep ahead of
inflation. There will always be the Ferraris and other exoti-cars that sell for
millions, but the more run of the mill cars are seeing decent growth too. The
contemporary middle class, mid range Chevies, Fords, Dodges, Ramblers etc that
were sold alongside our Magnettes are now trading (for the most part) in the
high teens to low 30s, so it would stand to reason that $20K - to $25K would
not be out of line for a Magnette in "ready to drive" condition, more depending
on history/provenance/originality. John Drake (Silver over blue Varitone in the
President's class at GT35) had his for sale recently for $26K, I don't know the
outcome of that sale, but it certainly seemed a reasonable price for a very
nice, though not totally original car.
Steve H.
On Oct 25, 2013, at 5:09 PM, Steven Trovato <strovato@optonline.net> wrote:
> I have a ZA and an MGA. I wonder how many people have a Magnette and an MGA.
> I've definitely heard of others. As for insurance, have you had a classic
> car insurance company refuse to insure for your stated value? I have found
> them to be pretty flexible, but I haven't tried to request anything too
> crazy. I think the only reason for them to hesitate is that they don't want
> you to be able to put a match to it to make a profit. I bet there are people
> on this list who have their Magnettes insured for 25K. I am just guessing,
> though. I suppose we will get some data points shortly. Has anyone had an
> insurance company refuse to give you as high a stated value as you wanted?
>
> -Steve T.
>
>
>
> At 07:20 PM 10/25/2013, Mike wrote:
>> SteveT, I'm with you except for one thing - value for repair or replacement
>> after an accident or other incident.
>>
>> If nice Magnettes were trading at around $10K, while they cost upwards of
>> $20K to get to that condition, you can be in a bind even with a stated value
>> policy. Is your underwriter going to go for you asking for $25K of coverage
>> for a car that trades for $10K? Perhaps not.
>>
>> But if the cars are trading in the $20K range, or to put it another way,
>> trading at a price that approximates what it would cost to duplicate the
>> car, getting them properly insured becomes easier.
>>
>> I'm not even going to consider the super-deluxe cars out there, the ones
>> with A/C, breathed-upon motors, and so on.
>>
>> I don't think the sedans will ever be as popular or pricey as the sports
>> cars, for all the same reasons that the sedans were widely outsold by the
>> sports cars when they were new. I've never really understood that, but
>> that's how it is. I have both a ZB and an MGA, and the ZB is the much nicer
>> (& rarer!) car. Go figure.
>>
>> Mike
>
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