Make sure to ask several very specific questions about the car’s history:

• How many owners has the car had over its lifetime?
• What state is the vehicle currently registered in?
• Are there any current liens against the vehicle?
• Has the vehicle ever been stolen?
• Has the vehicle ever been in an accident?  If so, what was the damage?  How was it repaired?  When did the accident occur?
• Has the vehicle ever experienced water or flood damage?

Next make sure you get an appraiser.  If you have found a vehicle that you have your eye on, make sure it is checked over head to toe by both the appraiser and a mechanic that specializes in classic cars.  This step can help save you thousands later on and can prevent against any “surprises” that may surface in the future.

• Work to figure out what type of classic car you are looking to buy.  Think about the make and model you may be interested in.
• Do thorough research.  Make sure you know the years of the cars that might be “iffy” in terms of maintenance.  Understand the model years of cars that received less than stellar consumer reports.  Dig deep; you will be happy you did later.
• Think about how you are going to drive this car.  Are you going to drive this car everyday or will this only be a “hobby car?”  If it is going to be driven everyday do not buy a car that is fully restored.
• Interview and research local mechanics or car experts that can help you with your purchase.
• Become a member of a car club that can help recommend resources to help you in your search.
• Search for vehicles that have their original equipment, they are more valuable than a car that has been heavily altered or changed.

• Make sure you have your classic car appraised prior to insurance shopping.  This will help you determine its actual value.
• Request “agreed value” coverage from your insurer.  This means that you are asking for your car to be insured at market value at the time the policy is written, not the market value at the time a claim is processed.
• Keep pictures of your car at the time the policy was written if you are able to get “agreed value.”  Make sure all terms are in writing.
• Depending on your classic car driving habits make sure you get a policy that suits your needs.  If you drive your car sparingly, you can probably save money by asking for a mileage limit.
• Get all restrictions to the policy in writing and stay aware of changes.  This will reduce your chance of suffering through a rejected claim.

First, make sure the insurance you are considering for your classic car applies to your car.  Your car should be considered antique, vintage, or a collector item.  It should be between 15 and 25 years old, in good or better condition, should not be used as a primary vehicle, should be stored in a private garage or area, and used only for fun or appearance, in other words this is not the car that you drive to work.

Next, this insurance will have specific information in the policy that your other car insurance will not have.  For instance, there will be usage guidelines and restrictions.  Depending on the policy, the car will only be covered if it is driven by drivers over the age of 21 or is only allowed to be driven a maximum number of miles each year.

The insurance will only go into effect if this vehicle is a secondary car; if it is driven everyday it will not be covered.  Also, it will only cover the car for the agreed upon value or the actual cash value of the classic car.  There may also be other restrictions on where the car can be driven.  For instance, it may only be permitted to be driven back and forth from car shows or other special events.

Make sure you are comfortable with all the terms on the insurance that you end up purchasing for your classic car.  There is no sense in signing a policy that doesn’t have your best interests at heart.

While both cars are likely to provide an equal amount of ownership and driving pleasure down the road, there are some pros and cons worth considering when it comes to buying a foreign classic.

The Pros

The British MG will certainly offer quite a few pros if you choose to purchase it over the Mustang. Some of the advantages of going this route include:

• The distinction –While the number of American classics on the road is dwindling, they are not out of the ordinary to see. That MG, or another foreign classic, however, won’t be quite as common.
• The challenge – Finding parts for any classic presents a challenge. For a foreign classic, the challenge level can be even higher. If you enjoy the hunt as half the fun of restoration, a foreign would likely work well for you.

The Cons

Going with a foreign car can present a few disadvantages, depending on your perspective. They include:

• Restoration costs – The actual cost for parts and even the related search can prove to be more expensive if you go with a foreign model car.
• The time involved – While that challenge might be fun, it can take up a lot of time. If you want a car that you can get on the road fast, a more common American classic might be the better option.

Picking a foreign classic car to restore does have some serious distinction attached to it. The reality is there is no bad choice here. It all depends on your willingness to put in the time and money to restore a car.

If you are considering getting into this hobby, there are some good reasons to make your first selection an American classic that is in drivable condition. Going this route will likely still provide the thrill of watching a restoration take place before your eyes, but it can also ease you into the hobby with a less intensive project.

The reasons to consider drivable American classics the first time out include:

• The availability of parts – While finding parts for any classic car can prove to be quite a challenge, it is often easier to find items for American models.
• The restoration costs – While the upfront costs for an operable classic will likely be more, the overall restoration fees should be less.
• The networking – Beginners will find one of the key factors in a successful restoration is having a network of contacts built up to help find parts, offer suggestions and even recommend pros to do some of the work. Starting out with an American classic that doesn’t require quite as much work can open up this network to an owner through classic car club memberships, auto shows and so on. Once a good network of contacts is in place, more challenging restorations can prove to be a bit easier.

Beginners who want to get into restoration as a hobby will find there are many options out there. If the desire is to jump into the hobby and enjoy all the benefits of owning and showing a car as quickly as possible, drivable American models often make more sense.

So, how can you determine a fair price to offer for a classic that has your heart thumping?

There are a few places to look for going collector value on many classics. Determining other factors such as condition devaluation can be a little trickier. Even when a fair amount of work is required, a classic may still hold value.

Some of the places to check for current market value of classics on the American market include using NADA guides and Kelley Blue Book. Reputable auction houses can also offer a clue to the value.

To get a better picture of what you should expect to pay for a particular make and model of classic, it is sometimes best to work with an appraiser. There are appraisal companies that work especially in this field.  Professionals can be found by going through classic car clubs, at car shows and online. It can also be helpful to look for like makes, models and years in collector’s magazines and want ads to see what they are selling for and what some recently sold vehicles have commanded as far as price.

Buying and pricing a classic car isn’t quite as straightforward as purchasing a new model. Keep in mind many of these cars can fetch a price that is higher than new car sticker value when in restored condition. When trying to determine a fair buying price, consider the restored value, the estimated cost of repairs and what you deem fair to decide if an asking price is in the right ballpark.

How can you research the cars without being able to see them until auction day?

There are a few things you can do in advance to narrow the selection and better guide actions on the big day. Try doing these things to help you determine which classic or classics might be worth bidding on:

• Research the makes and models – An auction Web site will list the makes, models and years of all cars included in an upcoming sale. Jot down as much pertinent information about the cars you are interested in. Once you have this information, take the time to research value on restored versions of these cars. Also look for such things as availability of parts, feasibility of insuring and so on.
• Call the auction company – It is perfectly acceptable to contact the auction company for more information on vehicles set for an upcoming sale. Ask questions about drivability, what restoration work has already been done and present physical and mechanical condition.
• Look in other places – Chances are if you’re interested in going to the auction or bidding on it remotely, there is a make and model that really has captured your attention. If so, take a look around on the Internet and other places for similar cars that might offer better pricing and a greater opportunity to see and start up the car before purchase. You may find the make, model and year for sale in another location so you can have some options.

On the day of the auction, make sure to arrive early. Take advantage of the time to inspect the cars you might bid on. Ask to have the engines started, if at all possible.

Buying a classic at auction is a great way to land a vehicle. Do take the time to research the cars and get as much information together about what you might be getting yourself into though. A little homework can save you hassles and disappointment down the road.

This doesn’t mean insisting on a car that is in mint condition. It simply means finding one that runs.

The three top reasons why beginners might want to leave complete restoration jobs to second, third or fourth purchases are:

The lack of know-how – Restoring a classic takes know-how that goes beyond the mechanical. Not only will you have to know how to put a vehicle back together again, but you will also need to know where to find the parts. While it is generally pretty easy for beginners to find a few stray parts, it does take time to develop connections. If you need parts to replace an entire engine, the time involved might be more than you are willing to put in.

The costs – Trying to restore a car that does not function will cost a great deal more in time and money than many beginners realize. This is especially so if authentic parts are desired. While a functional car may cost more on the front end, it can end up saving money down the road.

The instant gratification – It is a whole lot more fun to buy a classic that at least runs than to start out with one that doesn’t crank. At the very least, an operable buy can be driven around once in a while as the restoration is ongoing on the body.

Restoring a classic is a blast. Starting out from scratch, however, can prove daunting for beginners. It is often better to ease into this hobby. Buying an operable car will provide a head start on the project without taking away too much of the challenge or any of the rewards.

As you research getting into this hobby more closely, consider doing some soul searching and homework on these things:

The kind of car you wish to purchase – This is pretty subjective, but you probably will want to toss some ideas around and research them more closely. Like it or not, budget can play a big role. While you might have your heart set on owning a Bugatti, your budget may guide you more toward an American classic. Do some studying on availability, pricing and difficulty associated with restoring some of the makes, models and years you are interested in. Unless you luck into a buy, it can help to have a few favorite picks in mind as you start looking for a car to purchase and restore.

Budgeting and space – Restoring a classic does take money, time and even some space. If you plan on doing all the work yourself, without hiring a mechanic or body person, you will need to have a garage to work in. You will also want to have a good handle on how much you can spend. As you start looking at cars, make sure to have rough estimate of your budget not only for the purchase, but also the restoration.

Difficulty of the restoration – While you will not know exactly what you’re getting into until you actually make a purchase, it is a good idea to ponder this point in advance, as well. Some makes, models and years are fairly easy to restore because parts are available and affordable. For other cars, however, you may have to have more patience, time and money on your hands. The harder parts are to find, the bigger the challenge. Do some homework on the types of cars you are interested in to get a better handle on the difficulty you may face.

The more research you do in advance of making a classic purchase, the better positioned you will be to make your restoration dreams come true.