Value of completed SLC kit

Hey folks,
I have a pretty basic question. Whats an SLC worth after its been "completed"?
I know completed is a relative word, but a car that's been put together, runs, drives, titled and registered. LS3 376/480/Graziano, good paint, nice wheels and tires, minimalistic interior.

I'm contemplating a SLC and would like to at least be of the belief that once I finish my kit I will be able to turn it around and recoup some of the time and money spent building the car. I saw one SLC sold at auction not too long ago for $105,000. Then there is another black SLC for sale for currently $119,000. Are these realistic numbers to expect if a completed SLC were to be sold at auction or otherwise?

Thanks folks,
Matthias

Anything north of 100K should be very reasonable. There is one partially completed car for sale on this forum, great price too (not mine).

matthiasbuchholz said:

I'm contemplating a SLC and would like to at least be of the belief that once I finish my kit I will be able to turn it around and recoup some of the time and money spent building the car.

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They can be difficult to sell, as the pool of potential buyers is small. There are many who'd also like to build themselves, so won't pay for something that isn't exactly what they want.

As was said, there is one part built kit for sale on this forum. I'd certainly consider that if I were wanting to drive more than build, have something as close to new as possible and a documented build (so far).

Thanks guys for the replies. The fact that there is a thin market for these monsters is a daunting thought. I'd hate to invest time and money only to find out that I have to do the next best thing to give it away in order to sell and mope on to my next project.

I chatted back and forth with Jim and he is still trying to sell his kit. Its unfortunate that he lost the drive to finish considering he is quite close to getting it done. I will try to work with him if/when I pull the trigger on my kit but may elect to buy all parts new rather than buy a pre-compiled kit. I'd rather have the LS3 480hp engine to be honest. Better idle from what I gather.

Thanks guys,
Matthias

Mattias.

as you can see the responses echo what I e thought earlier

You really do have to keep in mind that most guys don't buy their dream car to turn around and sell it. There is also the issue of your dream build may not be the next guys.

If you are not infatuated and in love with the thought of build process and then the visceral driving experience a project like an SLC may not be the thing for you.

If its a business proposition you are after there are definitely better money making opportunities out there...but few will be as much fun and as rewarding as building a car that has better all around numbers and performance than an F40....at 1/10th the cost

I would add up the cost of all the parts and if they are unused, good as new, or used but without any wear to speak of, I would offer that amount or use that figure as a datum point in a negotiation. Some things like gearbox type will be of more value to you if it's the type you would buy if you were doing the original build yourself.

Do your due diligence on amateur built engine's for obvious reasons. Hell do it for them all. Don't get me started on crate motors, at least the ones that were available 8-10 years ago. I think they may be better nowadays........pig in a poke as far as I am concerned. Sorry I had a bad experience.

I'm sorry, again, but I don't put any value on non professional labor............none. I would add value for a pro built roll cage for example because it must be made to fit and the labor in integral to it's value. Other things like simple assembly I would not. Here's my reason. The labor was bought so that the seller would/could not have to do the work himself therefore it was a value to him.........not me.

Bodywork and prep for paint............some reasonable amount but nowhere near hour for hour. Maybe something like a third of a documented cost. Paint itself...........none unless I would have chosen the same color and other things like stripes myself, again maybe a third.

The last thing is current registration and license. If this is done and current in your state then that's really something of value. It's not that this is a difficult process but it does take time and for some people it's just a real pain in the ass transferring title from state to state and stuff. If this is done and current in your state then IMHO that's worth a few thousand dollars. Figure out how to do it in your state and then place a value on the peace of mind that it done and easy.

Following the above will get you to around 100K with good parts, licensed, and fully sorted.

If the plan is to make money buy a couple of convertible 65 Mustangs. Better yet, a good no load growth equity mutual fund.

Again, thanks everyone for chiming in on the questions I raised.

I want to be very clear when I say this so that everyone understands. I am infatuated with the build process more than I am with the actual driving eperience. This will probably change when I do drive an SLC, but for now the thought of putting together and assembling my own racecar is the driving force behind me pinging on you guys for advice. If I just wanted a fast car I would buy a Corvette, F360 Modena or supercharge my e46 M3. No. Not my cup of tea and not the direction I want to go. I'm in it for the engineering portion just as much as the end product.

I was curious as to resale value of these cars because I would idealy like to build a few (2 or 3) with each iteration being slightly better than the last. Again, build process is the driving force here. I understand that there are better ways to make money. If it were a financially beneficial endeavor there would be companies all over creation buying these kits, flipping them and making fistfulls of cash. That's obviously not the case given the scarcity of these vehicles.

I will figure out what I want to do going forward. I have plenty of time to think about what I want my next move to be in regards to how I will squander my free time

Thanks everyone for their input and opinions. Fran, good talking to you today and I appreciate the time you took to explain everything to me. I look forward to meeting you in Charlotte in early April.

Cheers folks,
Matthias

gt40fran said:

If you are not infatuated and in love with the thought of build process and then the visceral driving experience a project like an SLC may not be the thing for you.

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Well said, Fran...and pretty much exaclty why I'm on the buyers list at a certain dealership for a 'go-fast' that will be available in the spring of 2015.

I really L-O-V-E the SL-C for a whole host of reasons...but, the whole 'turn-key-upon-delivery-and-go-fast-with-a-warranty-with-no-'shake-out-issues'-whatsoever' thing was just too much to resist in my case. (Age/lack of ambition/physical limitations had a lot to do with that decision.)

That being said, I'd really prefer an SL-C were it not for the aforesaid...hypocritical and 'contrary' as that may sound. (Edit: An aside: GT 40s proved 'too claustrophobic and cramped for wifey and me.)

Larry,

we have turnkey builders that could provide exactly what you described...and with a buildtime of only 3-6 months depending upon spec.

Although there are shakeout issues even with a OEM sports/supercars in some instances...
458 Ferraris bursting into flames, Ford GT's with cracked body panels and windows that leak, not to mention control arms that failed to name a few.

So nothing is infallible and with close to 500 kits delivered in the last 10 years and no RCR designed and manufactured major component failure, we are doing OK I reckon.

matthiasbuchholz said:

I would idealy like to build a few (2 or 3) with each iteration being slightly better than the last. Again, build process is the driving force here. I understand that there are better ways to make money.

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These cars are a good way to lose money. They're something that you build despite the money IMO.

In your position, with my understanding of what you want, I'd buy something like Jim's car, complete it and then plan modification projects. That way you get to drive it and get the fun of evolving it, based on what you've learnt from having driven / worked on it.

How hard is it to convert an LS3/525 to an LS4/480. Is it just a cam and ECU map change?

rnixon said:

These cars are a good way to lose money. They're something that you build despite the money IMO.

In your position, with my understanding of what you want, I'd buy something like Jim's car, complete it and then plan modification projects. That way you get to drive it and get the fun of evolving it, based on what you've learnt from having driven / worked on it.

How hard is it to convert an LS3/525 to an LS4/480. Is it just a cam and ECU map change?

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Roger, for obvious reasons, I totally agree with you :thumbsup:


Seriously, there are very few cars throughout history that have proven to be a profitable investment. Car enthusiasts, buy, own, collect build and restore cars for a variety of reasons; I suspect that return on investment is not a high priority with the majority of this group. That being said; I also suspect that the average car enthusiasts just wants to have pride of ownership and enjoy the car without taking a huge hair cut when it comes time to move on to the next desirable project. This is easier done with some vehicles than others.


The question of a car such as the SL-C being more or less valuable because of limited supply is an interesting one. “Limited Supply” vs. “Thin Market”.... which has a grater influence on the value of the car? I honestly don't know the answer, but it does make for an interesting debate!


Enjoyed the thread.
Jim

Limited Supply = Demand but limited/no product = High value / "Sellers market"
Thin market = Low demand = Mediocre value / "Buyers Market" (if there ever comes one)

I would obviously rather be encountered with the former rather than the latter when trying to sell a car. Which market does the SL-C fall into?

As another SLC owner pointed out a while ago, pretty much all cars depreciate. So the question is, does the SLC represent a particularly good or bad example of a depreciating car?

I would argue that if you were to purchase a turnkey SLC of mild spec and have $100K in it (the turnkey stipulation is to take the issue of owner labor out of the equation), after 3 years if you sold it for $85K you'd be better off than a comparable "normal" car that is in the same price band. For example, a 2011 Corvette ZR1 that listed (and typically sold for) around $125K is now about $90K with about 6000 miles, according to Autotrader (and these are asking prices...)

The $85K doesn't seem too unlikely, as we've seen others sell at auction for between $90 and $120K. It's interesting to note that only the SLC, compared to other mid-engined V8 component cars, retains it's value like this.

The SLC is a great car on it's own merits-- it's hard to beat it for power-to-weight, or especially handling and driving dynamics. But the recent sales would indicate that it is also a pretty decent "investment", for a car.

And no, mine is not for sale. :laugh:

From what I've seen, kit cars tend to not depriciate at nearly the rate of production cars, mainly because the year of manufacture doesn't really matter on a kit car like it does for a production car. I sold my Cobra 11 years after I bought the kit and broke even. The buyer never even asked "what year" it was.

Something I think will help resale value of SLCs in the long run is the fact that RCR makes minor design changes/improvements without changing the name of the car. Another major kit manufacturer keeps adding "Marks" to their kits, which makes it very hard for the poor guy with a "Mark I" to sell his car.

I assume that I will not make any money on the resale of my SLC, its more a question of how much I will loose. Like Will says, think of it in comparison with the depreciation of a high performance production car (ZR1, Ferrari, Lambo, etc) and it won't bother you as much.

I know that I will need to sell my SLC one day, so resale goes into nearly all my decisions. It costs $65k-110K to build a street legal SLC, depending on how extravagant you want to get. So I think about what a potential buyer in that price range would value in a SLC, as well as what would turn them off.

When I put myself in a potential buyer's shoes, I'd want:

• Outstanding performance that accelerates, handles and brakes on par with other suprecars.
• Solid, proven and reliable drivetrain. The numbers are important here when you advertise, so something north of 450HP and 6 speeds will attract the buyers you want.
• Civilized amenities like AC, stereo, infotainment, etc.
• Comfortable interior that is relatively quiet and free of creeks and rattles.
• Visually appealing exterior, including body work, panel fitment, paint, etc. You will probably advertise on the web, so think of how it will look in a picture. Some color combinations photograph better than others.
• A comfortable, professionally upholstered interior. This includes a balance of stitching, bling, high quality materials, as well as an absence of exposed fasteners and off-the-shelf/aftermarket looking gauges and controls.
• Very OEM driver operation, with the least amount of quirky or unusual controls. Think about a potential buyer's first test drive. It should be simple, confidence inspiring, and exhilarating.

The early years of "Kit cars" gave the industry a dark reputation that you must overcome during resale. So if you want to compete with other supercars, play down the kit car nature by building your SLC with the highest craftsmanship possible.

Wise elders seem to consistently advise us grasshoppers to "Spend your money on experiences, not things". I'm building the SLC simply because I want to. I gain a great deal of personal value from the build experience. That experience will stay with me long after my SLC is sold, and more than makes up for the difference in cost.