[DML] Re: Restoring a D (d prices)

[MichaelPacman@xxxx]

Hello DML,

Many of you have given your insights as to what a DeLorean restoration 
project should or would cost. If one were to completely restore a car what 
would the car be worth in the market place? $30,000? Most Nice cars sell for 
$20,000-$24,000k, drivers for $16,000-$19,000, in need of restoration car for 
under $15,000.

There are many "new" cars hiding in collections. The gentleman who I meet on 
plane owns a DMC with 60 miles on it. He was the founder of the LORCERN gun 
company. The company was made famous for manufacturing the "Saturday night 
special" handguns that are just about outlawed. Due to the crack down on gun 
ownership his company is now defunct and seeking bankruptcy protection. The 
car was listed in the bankruptcy listings as "one of the lowest mileage 
DeLorean to exist." This type of museum or preserved car with under 500 
miles, my opinion will become the higher value cars in the distant future. 
These are the cars that collectors will desire to add to their collections 
and look at. Most of us on this list do not fall into this category, (Darn 
it). 
The number of DeLorean produced according to JZD was around 9,000. If 
after 19 years 1/2 were known to exist approx. 4,500 and only 2.2% of them or 
approx. 99 true factory original condition cars are in the museum condition 
described, that would leave approx. 4,400 cars that are driven and routinely 
maintained. These cars are bought and sold. Once used as or now used as a 
primary method of transportation. Repaired and serviced by a specialist or by 
the owner who has taken the time to fix and repair their car. 
Assume that an untitled DMC was purchase when new for $27,000. Year could 
be 1981 or year 2000. The depreciation was 25% the first year. $27,000 -- 
$6,750 = $20,250. ( $20,250 = Price of "Excellent Condition" DeLorean 
advertised in Hemming motor news DeLorean World, etc.). You know that a new 
car loses value when driven off the showroom floor. The owner drives and 
maintains the car at a rate of 10% or $2,000 annual maintenance costs. 
$2,000 x 19 years = $38,000 total maintenance costs. Theoretically the car 
would look and perform to as new condition.
So with that in mind if you add the initial purchase price of $27,000 + 
$38,000 for repairs and maintenance = $65,000 or approx. investment cost for 
the 19 years of DeLorean Ownership for a car that looks and performs in as 
new condition.
Now assume that the owner is tired of the Back to the Future jokes and 
How long was JZD in jail questions. The owner wants to replace the DMC with 
an equal car that is regarded with the respect presently afforded only 
certain European and Asian cars. A car that is well built, has nice styling, 
unique to own and has a degree of distinction. A car such as a Mercedes Benz, 
BMW, Porsche, Acura NSX, or as DeLorean wanted, "think of the car business as 
a piano. DMC will fit between the piano keys of the Chevrolet Corvette and a 
Porsche 911." Marketing people call them materialistic consumers.
The 2000 Corvette has a base price of $45,000. The Porsche 911 has base 
of $85,000. (85,000 + 45,000 = $130,000) divide by 2 = $65,000 average cost 
for replacement of DeLorean.
So the owner looks around and buys a $65,000 new car to replace the DMC. 
Assume the same 25% depreciation cost of $16,250. So the $65,000 car is now 
worth $48,750.
Driver depreciates car at same 10% rate of DeLorean ($48,750 x 10%) = $4,875 
annually repair costs. Driver keeps car another 19 years. $4,875 x 19 years = 
$92,625 total repair costs.

$92,625 + $65,000 = $157,625 total investment in new car.

$38,000 + $27,000 = $65,000 total investment in org. Car.

So as you can see the total investment in a properly cared for and maintained 
DMC = $65,000. This is equal to the replacement cost of a new model year car. 

Research indicates the average restoration bill from one of the DMC 
specialists is the cost of depreciation for the new car. Approx. $16,250. 

Delorean cars seem undervalued. However even after 20 years there seems to be 
more of a supply than demand for the car.

I could be wrong...
Mike