Eco-rodding, I guess I didn’t coin the term after all, is something that I define as a cool classic car that gets great gas mileage thanks to modern technology and creative design. As previously discussed, I am a GM guy and a gear head. Being a gear head is an expensive hobby and one that seems like it would block a path to early retirement and financial independence. Well as Lee Corso would say, “Not so fast my friend.” I have a theory which I would like to lay out. *Disclaimer, I really think this particular path is only viable if you can do almost all of the work yourself, so this path isn’t for everyone.
Classic cars, if you get the right one at the right price, either hold their value or can appreciate in value, especially if you can restore it on the cheap. I have been dabbling in this for several years now. Ideally I look for vehicles whose bodies are good and then I just install a motor and transmission get the mechanicals up to snuff and sell it at a profit. However, with every major TV network now having a car flipping show on it, prices have gone up quite a bit and it is much harder to find good deals. I keep my ear to the ground but have not flipped a vehicle for a couple years now.
Why is eco-rodding worth your time? Good question. New vehicle manufacturers keep adding more and more complicated electrical systems and sensors to their vehicles. While this leads to greater reliability and economy it also requires complex and expensive tools for your average DIY person to fix. I believe the major manufacturers are trying to squeeze out the little guy and force all vehicle maintenance and repairs back to the dealerships. Dealership repairs are mucho expensive. New vehicles also are more expensive when it comes to taxes and insurance.
Thus enter eco-rodding. I believe you can have your cake and eat it too. In many states vehicles over 25 years old are considered antiques. Depending on your state this should dramatically reduce the amount of taxes and insurance you are required to pay to have your vehicle on the road. Over the course of a year it is several hundred dollars less for me to insure my 65 c10 than my 2008 grand prix (two cars, I know I’m living the high life and wasting money). I currently use my pickup for home repairs that my car can’t accomplish. Maybe I could split the baby and get a van, but I’m too cool for that.
So if you are mechanically inclined like I am. You may wish to purchase an older vehicle for the tax and insurance savings. The next problem becomes that many of these vehicles are not even in the same league as modern cars for fuel mileage. If you are a GM person, the LS engine swap has become quite popular and there is a large aftermarket to support putting this modern, fuel efficient, and powerful engine into an older vehicle. Again, none of this is financially viable for a frugal person unless you can do most of the work yourself. Even these modifications are only worth it if you plan on keeping your vehicle indefinitely like I do. However, if you factor in basic maintenance and repairs (all of which are dependent on the distances you drive and how you drive) the fact that these vehicles are much easier to work on and the repairs can be done by you, the cost savings can be significant. Otherwise you may simply wish to pick up old cars on the cheap, fix them, and sell them at a profit. I have made several thousand dollars flipping a single vehicle in the past. Right now, in my area, vehicle prices seem elevated to me so I haven’t done much flipping as of late.
Sure this all sounds good in theory, but what have you really done? Fair point. I have two projects that I am particularly proud of, one that’s mostly finished and one that’s in the works. My 65 C10 has been worth it’s weight in gold to me, and I’ll explain why in subsequent posts. My other project is a 63 nova that I want at least 50 mpg out of. Both of these projects will be discussed in detail in later posts.
