of American muscle
Horsepower
Colin Comer
THE RETURN of American muscle DURING THIS WHIRLWIND AUCTION WEEK, I WITNESSED EVERYTHING FROM RECORD-BREAKING SALES TO FLAT-OUT BARGAINS
Courtesy of Barrett-Jackson
1967 Mustang custom, sold for $275k
E
ight days, eight auctions, roughly 2,300 cars offered. This year’s Arizona auctions unanimously pushed one message: Muscle cars are back. The Scottsdale auctions have long been considered the barometer for the coming year in the collector car market. 2012 marked record sales across the board, with a combined sales total of the “big six” auctions surging to a staggering $182 million. While we are not back to the feeding frenzy and insane prices of 2006, what is evident from this year’s sales total — and from closely analyzing some key sales — is that stability has returned to the market for American collector cars.
Buying smart and buying right Stability, in my book, could also be called repeatability. Being able to peg within a few thousand dollars what a car will bring on the block based on recent sales of comparable cars is good. It speaks to sellers knowing what their cars are worth and buyers knowing what to pay. I’ve preached for years for buyers to do their homework and be smart on the buy, or, as I like to joke, to not “buy in haste and repent in leisure!” The auction companies are really making a dent in weeding out fraudulent cars and descriptions, and they should be commended for doing so. But it is ultimately still up to the buyer to !"#$%&'$%(%)"*%+"**%,)%-'"&%./%*.0$%")1%-'"&%./%2$!,3$45% 6,!$%,7%&'./%8$"39/%3$/:*&/%;%,,3$1%!$5%%-'.+'%/',:*1% ?$%C*$)&8%&,%/+"3$%&'$%/&:7(%)A%,:&%,7%8,:3%+"3%?:11.$/5%@&%/,*1%7,3% $275,000. Lot 1250.2 was a Grabber Blue 1970 Boss 429 Mustang reported &,%?$%"%):!?$3/=!"&+'.)A%$4"!C*$%+,33$+&*8%3$/&,3$1%&,%+,)+,:3/% +,)1.&.,)5%@&%/,*1%7,3%"%/C,&=,)>%!"3#$&=+,33$+&%PJQM>RSS5% While my crystal ball doesn’t work as well as I’d like, I bet that if these buyers woke up with an auction hangover, the buyer of the F,//%QJK%-,:*1%?$%"?*$%&,%T:.+#*8%(%)1%"%?:8$3%7,3%3.A'&%"3,:)1%-'"&% '$%C".1%D%C$3'"C/%$0$)%!,3$%D%-'.*$%&'$%3$/&,=!,1%?:8$3%+,:*1%?$% looking at a potentially large haircut should he decide to sell it in a hurry. But if both buyers decided they wanted to take a road trip in their )$-%+"3/%")1%"/#$1%!$%&,%3.1$%"*,)A>%@91%+"**%/',&A:)%.)%&'$%3$/&,=!,1%
without thinking twice. After all, there is some= thing to be said for good brakes, suspension, a radio and a/c. Neither buyer made a bad decision, but one ?,:A'&%")%.)0$/&!$)&=&8C$%+,**$+&,3%+"3%")1%,)$% ?,:A'&%"%#.+#="//%&,8%&'"&%-.**%?$%7:)%&,%:/$%D%?:&% will probably never appreciate in value.
Steals and deals Two other examples from this year’s auctions /',-%&'"&%$0$)%.)%"%3$+,31=?3$"#.)A%-$$#>%A,,1% cars sometimes fall through the cracks. RM U:+&.,)/%/,*1%H,&%JQO%D"3A:"?*8%&'$%()$/&%:)3$= /&,3$1%IKMI%V$!.%%"*/,%#),-)%"/%"% Darin Schnabel ©2011 Courtesy of RM Auctions 1$"*$3=+,)0$3&$1%6:C$3+"35%@&%"*/,%'"CC$)$1%&,%?$% a 5,000 original miles, original paint car on top of 1971 Dodge Hemi Challenger R/T — a steal at $308k? that, and the same car that famously changed hands in 2006 for $600k. In the spirit of full disclosure, I purchased this car on behalf of a client who was thrilled to add it to his collection. 3$"*=-,3*1%/"*$/%,)%-'.+'%&,%?"/$%0"*:"&.,)/5% Across town at the new Bonhams’ Scottsdale auction, Lot 355, a After talking to hundreds of buyers during the week, ranging from 0$38%).+$%IKL]%6'$*?8%^YRSS%_W%Q=/C$$1%7"/&?"+#%/,*1%7,3%PMS>JSS5% seasoned collectors to guys just getting started, I found that people B$/>%.&%-"/%V.A'*")1%^3$$)%")1%"%*.&&*$%3,:A'%"3,:)1%&'$%$1A$/>%?:&% once again feel comfortable buying good cars. And the number one PMS#%7,3%"%Q=/C$$1%_W`%Y'"&%-"/%$"/.*8%POS#%,)%&'$%/',3&%/.1$%,7%&'$% reason I heard? They trust cars more than other investment venues, money. such as stocks. As one collector said, “Where else could I put the money that would be as safe? Not to mention I get to drive the cars!” The buzz is back I’m not an investment adviser, but I can certainly agree that a What the results can’t show on paper is the buzz felt on the ground garage full of old muscle cars is a heck of a lot more fun to have than in Scottsdale. Values are moving up steadily, and rather than having a big stock portfolio. And judging by the thousands of bidders buying to read tea leaves to offer predictions, guys like me now have multiple in Scottsdale this year, I’m not alone. A
CORVETTE AMERICA HALF PG AD January-February 2012
49
Colin Comer
THE RETURN of American muscle DURING THIS WHIRLWIND AUCTION WEEK, I WITNESSED EVERYTHING FROM RECORD-BREAKING SALES TO FLAT-OUT BARGAINS
Courtesy of Barrett-Jackson
1967 Mustang custom, sold for $275k
E
ight days, eight auctions, roughly 2,300 cars offered. This year’s Arizona auctions unanimously pushed one message: Muscle cars are back. The Scottsdale auctions have long been considered the barometer for the coming year in the collector car market. 2012 marked record sales across the board, with a combined sales total of the “big six” auctions surging to a staggering $182 million. While we are not back to the feeding frenzy and insane prices of 2006, what is evident from this year’s sales total — and from closely analyzing some key sales — is that stability has returned to the market for American collector cars.
Buying smart and buying right Stability, in my book, could also be called repeatability. Being able to peg within a few thousand dollars what a car will bring on the block based on recent sales of comparable cars is good. It speaks to sellers knowing what their cars are worth and buyers knowing what to pay. I’ve preached for years for buyers to do their homework and be smart on the buy, or, as I like to joke, to not “buy in haste and repent in leisure!” The auction companies are really making a dent in weeding out fraudulent cars and descriptions, and they should be commended for doing so. But it is ultimately still up to the buyer to !"#$%&'$%(%)"*%+"**%,)%-'"&%./%*.0$%")1%-'"&%./%2$!,3$45% 6,!$%,7%&'./%8$"39/%3$/:*&/%;%,,3$1%!$5%%-'.+'%/',:*1% ?$%C*$)&8%&,%/+"3$%&'$%/&:7(%)A%,:&%,7%8,:3%+"3%?:11.$/5%@&%/,*1%7,3% $275,000. Lot 1250.2 was a Grabber Blue 1970 Boss 429 Mustang reported &,%?$%"%):!?$3/=!"&+'.)A%$4"!C*$%+,33$+&*8%3$/&,3$1%&,%+,)+,:3/% +,)1.&.,)5%@&%/,*1%7,3%"%/C,&=,)>%!"3#$&=+,33$+&%PJQM>RSS5% While my crystal ball doesn’t work as well as I’d like, I bet that if these buyers woke up with an auction hangover, the buyer of the F,//%QJK%-,:*1%?$%"?*$%&,%T:.+#*8%(%)1%"%?:8$3%7,3%3.A'&%"3,:)1%-'"&% '$%C".1%D%C$3'"C/%$0$)%!,3$%D%-'.*$%&'$%3$/&,=!,1%?:8$3%+,:*1%?$% looking at a potentially large haircut should he decide to sell it in a hurry. But if both buyers decided they wanted to take a road trip in their )$-%+"3/%")1%"/#$1%!$%&,%3.1$%"*,)A>%@91%+"**%/',&A:)%.)%&'$%3$/&,=!,1%
without thinking twice. After all, there is some= thing to be said for good brakes, suspension, a radio and a/c. Neither buyer made a bad decision, but one ?,:A'&%")%.)0$/&!$)&=&8C$%+,**$+&,3%+"3%")1%,)$% ?,:A'&%"%#.+#="//%&,8%&'"&%-.**%?$%7:)%&,%:/$%D%?:&% will probably never appreciate in value.
Steals and deals Two other examples from this year’s auctions /',-%&'"&%$0$)%.)%"%3$+,31=?3$"#.)A%-$$#>%A,,1% cars sometimes fall through the cracks. RM U:+&.,)/%/,*1%H,&%JQO%D"3A:"?*8%&'$%()$/&%:)3$= /&,3$1%IKMI%V$!.%%"*/,%#),-)%"/%"% Darin Schnabel ©2011 Courtesy of RM Auctions 1$"*$3=+,)0$3&$1%6:C$3+"35%@&%"*/,%'"CC$)$1%&,%?$% a 5,000 original miles, original paint car on top of 1971 Dodge Hemi Challenger R/T — a steal at $308k? that, and the same car that famously changed hands in 2006 for $600k. In the spirit of full disclosure, I purchased this car on behalf of a client who was thrilled to add it to his collection. 3$"*=-,3*1%/"*$/%,)%-'.+'%&,%?"/$%0"*:"&.,)/5% Across town at the new Bonhams’ Scottsdale auction, Lot 355, a After talking to hundreds of buyers during the week, ranging from 0$38%).+$%IKL]%6'$*?8%^YRSS%_W%Q=/C$$1%7"/&?"+#%/,*1%7,3%PMS>JSS5% seasoned collectors to guys just getting started, I found that people B$/>%.&%-"/%V.A'*")1%^3$$)%")1%"%*.&&*$%3,:A'%"3,:)1%&'$%$1A$/>%?:&% once again feel comfortable buying good cars. And the number one PMS#%7,3%"%Q=/C$$1%_W`%Y'"&%-"/%$"/.*8%POS#%,)%&'$%/',3&%/.1$%,7%&'$% reason I heard? They trust cars more than other investment venues, money. such as stocks. As one collector said, “Where else could I put the money that would be as safe? Not to mention I get to drive the cars!” The buzz is back I’m not an investment adviser, but I can certainly agree that a What the results can’t show on paper is the buzz felt on the ground garage full of old muscle cars is a heck of a lot more fun to have than in Scottsdale. Values are moving up steadily, and rather than having a big stock portfolio. And judging by the thousands of bidders buying to read tea leaves to offer predictions, guys like me now have multiple in Scottsdale this year, I’m not alone. A
CORVETTE AMERICA HALF PG AD January-February 2012
49
