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Now comes the hard
part of every restoration, talking about the financial commitment
involved. Make no mistake my friends, it is a commitment. The
hardest part of any project is fitting it into your budget, and
doing so in a way that is comfortable and economically sensible for
you and your family. If you are looking to restore an entire
vehicle, mechanical & body, and think $5,000 is going to cover it,
think again. This type of craftsmanship is expensive and will
require a much larger commitment on your behalf. Also keep in mind
that while some shops may offer to do the work for cheaper, in the
end you will always get what you pay for. Remember this phrase,
"Cheaper is not always better!". Instead you should be comparing.
Which shop gets more bang for the buck without sacrificing quality.
Questions like these should be your focus when financially planning
your restoration. Here are a few rules of thumb to remember.
- Full restorations (i.e. Body & paint, and mechanical
overhaul) rarely finish below $20,000 when completed.
- Level 1: Concourse De' Elegance vehicles generally start at
around $70,000
- Level 2: High Quality Show Car vehicles generally start out
at around $40,000
- Level 3: Show N' Shine vehicles generally start out at
around $20,000
- Partial restorations are subject to the work that is
required. Talk with your shop to better understand your vehicles
needs and just what those needs could cost you.
- Custom Hot Rods of high show quality calibur are in a class
all their own and generally start out at around $80,000
- Parts cost can fluctuate and will often drive the cost of a
restoration project up unwittingly.
- Be involved with your project. Don't just drop it off and
give them your money. Make frequent visits to your shop and take
the time to understand the work that's been performed. You need
to know what your paying for.
- Pay your account on time, nothing hurts worse than paying
interest on a $5,000 bill or having it sent to collections,
ouch!
When it comes time to actually make the
commitment, every customer has their own way of handling the
financial burden. However, more often than not, improper planning on
the customers behalf, leads to financial trouble. Customers who have
not taken the financial commitment they've made seriously can place
themselves in a very tough spot and end up doing serious damage to
their credit as well as their financial well being. On the other
side of the coin though, customers who have made proper planning and
taken the commitment seriously, can end up with a very rewarding
asset as well as improve their credit rating. A $40,000 restoration
paid on time and in full looks really pretty on a credit report.
Although we cannot tell you which financial plan works best for you,
here are some suggestions to consider.
- Home Equity Loans provide a perfect source for financing
restoration projects. Customers who own their own homes can
easily get a line of credit providing adequate funds to complete
their project. Generally these loans have very low interest
rates, especially compared to auto loans, and can be stretched
over large periods of time. This results in low monthly payments
and little to no major impact on monthly budgets. If you don't
think that financing your project is logical consider this,
would you have purchased your daily vehicle if you could not
have financed it? Think about it?
- Personal Loans are for anyone who doesn't own a home and
still would like to attempt to finance their project. Interest
rates on these loans are generally higher than the home equity
loans but are still better than an auto loan most times. You can
generally get these loans in amounts up to $40,000 on average.
- Low Interest Credit Cards should be considered for small
jobs or partial restorations. interest rates vary and you should
shop around before you decide on one.
- Out of Pocket is probably the hardest way to finance a
restoration project but is not unheard of. if you are in a
position to do so just be sure to plan it out properly. Make
sure you have the cash on hand to handle the project commitment
and don't spend so much that you spread you and your family thin
financially. Also, know your limit. If you run short on cash to
finish, don't start taping into money you never intended on
using. Consider placing the job on hold and starting back up
when you can rebuild some capitol. You don't have to finish
everything at once.
- Project phasing is a good way to break up the financial
commitment of a project. You can split the job into sections and
handle these areas individually and at different intervals. This
type of planning is very economical and is usually the best
route for those who don't have a lot of cash on hand and are
working on a limited budget. Buffalo Restorations can help you
develope a Phase Plan that will work with your budget.
Now as we said before, figuring out which
financial plan makes sense for you will take research on your part.
Choose wisely and consider all the consequences of each option.
Eventually you will decide on the plan that works best for you and
be ready to begin your project fully prepared for the road ahead.
We have financial institutions we work with to provide you with
the money you need to get started.
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