Modified Cars: Not Worth The Sum of Their Parts?

We’ve all seen it, someone is selling a car that is maybe worth $4,000 but they have it listed for $8,000. Why? Because they have a kickin’ stereo, or an aftermarket turbo kit, or $4,000 wheels/tires mounted with camber a’la Hill Valley in 2015. This type of thing tends to be more prevalent in younger enthusiasts or people new to the hobby, because we usually figure out the hard way that it doesn’t work like that.

So I’m going to be blunt. $2,000 of aftermarket parts does not increase the value of your car by $2,000. It may not even increase the value of your car by $1. The reason being: modifications are subjective, and the quality of work is even more subjective. It's an unfortunate truth that we as car enthusiasts must accept.

It is up to the buyer to put a value on the car

Here’s an analogy for you. It’s been said that the only way to actually make money as an artist is to be dead. There are hundreds of people in this world who can paint a wonderful and detailed picture, but it’s the ones who have passed on, leaving a story and a name, that have their work selling for the most. When you modify a car, you are taking the role of the artist. You change and tweak things to your liking to make an image or to make the car perform in a manner that suits you. When you decide your work is finished and you want to sell it, it’s then up to the potential buyer to judge the work and put a value on the car.

Here’s the tricky part, if you’ve modified the car it is likely to only appeal to other enthusiasts. Other "artists", who want to sculpt it to their liking. Other people who would often times prefer to start with a blank canvas… that is, unless the price is low enough.

If a twin of my car existed

Now let’s take it another step. $2,000 in recent maintenance does not add $2,000 over the normal value of the car. That’s a tough pill to swallow because $2,000 in needed repairs definitely brings down the normal value of a car. But, if you’ve got receipts for the work done, you can get up to the normal value of the car. As an example, my Volvo V70R is worth around $4000 depending on the buyer and how much they want a Laser Blue wagon. This is with a very recent head gasket, timing belt, head rebuild, turbo rebuild, and a host of other brand new parts. If a twin of my car existed, and all of the aforementioned items were in fine working condition with no faults, everything else being identical, the value would be similar if not equal. If these two cars existed in close enough proximity that a person could cross shop, it’s likely they could talk the second car down in price, or they could opt for mine given that the work performed was quality.

All this to say, the automotive enthusiast hobby is NOT* an investment. Bubble: Burst.

*Excluding rare, vintage, factory original, numbers matching cars, etc.

What's your take on selling a modified car?

 

Shop Volvo Suspension at FCP Euro

 

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About the Author: Glen Cordle

Glen is a mechanical designer from Minneapolis Minnesota. An old-school motorhead at heart, he respects anything that's had passion poured into it. A jack of all trades, master of some.

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Written by :

Glen Cordle

Glen is a mechanical designer from Minneapolis Minnesota. An old-school motorhead at heart, he respects anything that’s had passion poured into it. A jack of all trades, master of some.