SOARING EXPECTATIONS DRIVE UP RESTORATION COSTS
Standards for show vehicles have risen, and more hours now go into each job
Restorations costing $800,000? A made-to-order restomod between $300,00 and $400,000? A $15,000 bill for a paint job?
These aren’t just super rare vehicles you see on specialty television shows or crossing the block at big time auctions. These are cars currently being built by shops across Canada.
Why does it cost so much and why has the cost of restoration doubled and then doubled again over the past 15 years? According to Langley restorer Kurt Penner it all started with a Lexus television commercial back in 1992. The ad featured the Lexus ES 300 and showed a shot of a ball bearing rolling smoothly down a perfectly gapped panel spacing.
The award-winning spot introduced the concept of precise tolerances and quality. Among those paying attention were collector car buyers and restorers, resulting in the quality of restorations taking a dramatic jump. So did the costs.
Penner says the restoration of his rare Canadian-built 1965 Pontiac Beaumont convertible that he paid $15,000 to have restored before getting into the business himself with brother Ewald 14 years ago would cost three to four times that today. But the quality of the restoration would be much superior.
“Standards have gone way up over the years and everything costs more,” he says, noting that in his own shop, the $60 labour rate of 14 years ago has gone up to $100 per hour plus 12 per cent GST and PST. “We have to pay more for the highest skilled people. It’s a very competitive business.”
He counts off the names of seven similar shops doing restorations or building custom cars with labour rates from $90 to $115 an hour.
The cost of parts and products has also increased. “I just paid $1,200 for a gallon of paint,” he says. “The paint job that once was $1,200 is now $12,000.”
But the quality of bodywork, fixing gaps that weren’t close to even when the vehicles originally ran down assembly lines and much higher expectations from owners and buyers have driven the costs higher and higher.
Just as paint products and parts have gone up, the cost of chrome plating has doubled. Strict environmental measures along with increases in the price of nickel and chemicals have been a factor. As well, there is less competition, with fewer chrome platers, since new vehicles use very little chrome.
Specialty shops that do upholstery and glass installation have hiked prices as shop rent increases along with labour costs.
It all adds up and a modest restoration of an American car can cost $60,000. A more in-depth, show quality restoration can easily be double that.
The Penners spent 5,000 hours restoring a rare 1938 Mercedes 327 cabriolet for a Seattle owner. That, coupled with the cost of parts and restoration products, drove the price well over half-amillion dollars.
Few shops will give estimates for the total cost. Those that do often underestimate the final tally. There are so many variables that can’t be seen including hidden rust and damage, panels that need replacing, missing parts, worn-out parts that need to be replaced and unobtainable parts that have to be made from scratch.
Restoring a muscle car from the ’60s like a Camaro or Mustang has the advantage that almost every piece can be purchased new, including fenders, doors, hoods and even the entire body.
But most of these parts originate in the U.S., requiring the monetary exchange rate to be factored in along with shipping.
These new replacement parts aren’t available for older and more exotic collector cars. With fewer salvage yards keeping cars that are over 10 years old, the scarcity of these parts has driven prices into the stratosphere. And sourcing parts online through eBay and other channels sometimes results in bidding wars that end with staggering prices.
Of course, there are various levels of restoration. Some people consider minor bodywork and a quick paint job to be adequate enhancement for a collector vehicle. But a glossy paint job over poor bodywork is money wasted. And a straight, rust-free body with glossy new paint makes everything else look shabby: chrome, wheels, engine bay and interior.
The restoration of a fairly common North American-built vehicle can consume 1,500 to 2,000 hours. Exotic or custombuilt vehicles that look old but have modern reliability take much more time in fabricating and fitting.
A case in point is a 1954 Studebaker coupe that a couple about to retire has commissioned to be turned into a restomod. It will look a lot like an original car, but underneath it’s all modern with a custom-built frame and suspension, a General Motors LS 3 engine delivering 430 horsepower and all the creature comforts of a high-end modern vehicle. Custom touches include an easily operated twin disk hydraulic clutch so both the man and his wife can shift the fivespeed transmission with ease and comfort.
As the scope of the project increased, so did the build time, from 1,500 hours to an estimated 2,500 hours, nearly doubling the original budget.
“Enthusiasts with disposable income are willing to spend more on bespoke cars that deliver what they want,” Ewald Penner says. “They can’t be leased or purchased from a car lot, so they are hand-built to order.
“These creations separate the enthusiast who is willing to be part of a crowd from the one who stands out from it because one of the most powerful statements you can make is to show up in a vehicle that is unique and completes your vision.”