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Making a classic business investment By Brent Schacherer Jerry Kramber has built a successful business by dealing in dreams. But for Kramber, the business of buying and selling classic cars and street rods is more than dollars and cents. It’s about having fun. “I guess I turned a hobby into a profession,” Kramber said. “I don’t do it for the money. You gotta love it. If you do something because you love it, you’re going to be better at it.” And for those who have seen him climb behind the wheel of his 1934 Ford three-window coupe and motor down the road, there’s no doubt of Kramber’s love for classic cars. “You can tell I like this, can’t you?” Kramber said, a broad smile breaking out across his face. “I could do this all day long. I’ve had this one three or four years. The kids don’t want me to sell this one. (They say) ‘Dad this is you!’” Kramber, owner of 12-Hi Sales in Litchfield, said his interest in classic cars started in his mid-teens, when he worked summers at his brother’s auto body shop. Back then, it was easier to dabble in classic cars, however. Kramber says he could find the classics — they were more abundant and hadn’t yet been termed classics — for $400 or $500. For that price, tinkering with the cars didn’t require a major investment. Back then, it was truly all about the fun, Kramber said. Ever since, Kramber has maintained an interest, eventually building his business of buying, improving and selling classic cars and street rods. He and his son, Sean, run 12-Hi Sales on U.S. Highway 12. Times — and finances — have changed since Kramber’s teen years. “The cars I bought for $500 when I was young, I’m selling for $40,000 to $50,000 now,” Kramber said. “It’s amazing.” Classic cars have been the majority of business at 12-Hi Sales for five or six years, Kramber said. He also sells modern used cars, but it is the classics that raise eyebrows as people drive past the business. The Krambers eagerly tell stories of cars screeching to a halt on Highway 12 because a driver’s eye has been caught by a classic on the 12-Hi Sales floor or in the parking lot. “People drive from long distances just to look in the window,” Sean Kramber said. Usually, they do more than look in the window — when the business is open. Admiring passersby make their way into the salesroom and chat with Kramber, sometimes for hours, about their memories of a special car, which have been sparked by a similar one on the 12-Hi floor. Jerry Kramber remembers a carload of New Zealanders who slammed on the breaks in front of his business because of a car on the sales floor. Even though they were on their way elsewhere, they ventured inside and spent more than an hour talking with Kramber about his cars. And then there was the guy who couldn’t get inside. A trucker driving past 12-Hi Sales one night noticed a 1930s vintage car on the showroom floor. Intent on learning more about the car, the trucker parked his rig and spent the night, showing up at 12-Hi Sales the next morning to quiz Kramber about the object of his admiration. “It was flattering, really,” Kramber said. “He’s not making any money with the truck parked, but he’s going to wait all night because he’s going to look at that car.” People are passionate about their classic cars. And that is good for business, Kramber said. The classics “kind of unite people,” he said. “They get together for car shows and other special events. You make friends; you meet people. All because of cars.” Kramber’s part of the equation is finding classic cars and improving them to meet the needs and desires of new owners. Sometimes, it’s something as simple as putting shiny, new wheels on the car. More often, it’s a new paint job, new upholstery, new chrome detail. He farms most of that work out to local body shops with whom he’s built a trusting relationship. “We finish things.” Kramber said. “We take them to another level. (People) want to buy the car. They don’t want to work on the car.” Through his years of involvement as an owner and seller of classics, Kramber has contacts around the country who let him know about people who may be willing sellers of their classics. When the formula is right, Kramber steps in with an offer. “I have a lot of bird dogs, a lot of leads,” he said. “A lot of what I get comes to me because they know I’m in the business. That’s the best way, really.” Sometimes, these deals are disheartening. Often, he finds sellers who have put their blood, sweat and tears — and a lot of money — into building a classic, only to run short of time, patience or money. “When you build a car, you end up upside down in it,” Kramber said. “It’s a labor of love” that often doesn’t make sense financially. “People come in and say, “I bought this old car and I want to restore it,’” Kramber added. Kramber recalled a 1936 Cabriolet owner who gave up on his dream of rebuilding a classic. Though in good shape, the car was missing hood sides and other finishing pieces. “The guy ran out of money, and that’s where Sean and I came in,” Kramber said, adding that once they and their body shop friends had finished the car, it sold for a good profit. “A lot of people don’t realize it’s big business,” Kramber said. To illustrate his point, Kramber scrolled through a list of classic cars on an Internet site. Cars from the 1930s, ’40s and ’50s were listed, with some eye-popping sticker prices. A $19,000 Chevrolet is described by Kramber as “a cheapy.” Most of the cars are in the $50,000 to $60,000 range. Some have asking prices of $80,000 to $90,000. Though they create a lump in the throat of some, the prices reflect what well-maintained classics are, according to Kramber. And that is a solid investment. Many classics appreciate 10 percent or more annually, said Kramber, who also does appraisals of classics for insurance companies and banks thinking of lending money for a classic car purchase. Even purchased on credit on a loan with 5 percent or 6 percent interest, the car returns a profit to its owner. That’s why Kramber doesn’t worry too much about how long a classic sits on his showroom floor. “The thing going for us is, if it doesn’t sell right away, it just goes up (in value),” Kramber said. Of course, the value is in more than dollars. “Where else can you have so much fun?” Kramber asked. “People just get a lot of enjoyment out of these cars.”
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