Volume No. 2 | January 15, 2008 | Palm Springs, CA | Print Version

Recession???...Not in the Classic Car Market

Having been in the business of selling Classic cars for the past 40 years, I have observed many trends. What has been happening for the past 2 years is almost a textbook accumulation of factors that are pushing the market to new heights. Never before have all these favorable listed items come together. The dollars decline in value against most major currencies, especially the European countries, Canadian, and even the Australian dollar have brought out a tremendous influx of buyers for top class collector cars. California is famous for rust free donor classics on which to start a restoration project, and we have our fair share a excellent restorers in the state. These buyers have learned to give high prices for the best cars and leave the so-so frame on restored cars a miss. Rick Cole my competitor some years back was quoted as saying "You can not give too much for a well restored car, only buy it too early". How right that has turned out to be. The savvy investor is now back in a big way having learned a lot from the spike of the 90's. In those days the not true classic car lover did little or no research on his/her purchase. They just wanted to get in on this opportunity. They cared less about limited production numbers, plus many used borrowed money.

Today's buyer is a "Baby Boomer" or younger who earned good money during the recent property rise, took some of that profit and picked up a well restored or Concours condition vehicle. He or She used the internet to check out many details of their purchase and confidently bought the work of art on wheels. For those of us with motor engine oil running through our veins once the purchase was made we just want to show the world of car shows and concours events what a great masterpiece we bought. With the Concours events mainly for the purist. I use a 1957 Chevrolet Belair Convertible to prove the value rise through the years. This was not a limited production vehicle (Except fuel injection model) if it was, today's value would be close to half a million dollars and up. In the 80's top dollar was around $20 thousand and up...the 90's $40 to 50 thousand was common, and then in the middle of the next decade some were touching $100 thousand. An added bonus of collecting this kind of vehicle is being able to show it off on Sunday drives to brunch. Plus it keeps the mechanicals up to par. Another major driving force was watching the frenzied bidding wars at the televised Barrett Jackson Auctions held each year in Arizona made TV stars for a brief moment when the gavel fell to the last person standing with bidder paddle in hand. This of course is short lived fame. Ask anyone showing their classic at a Concours if the price of gasoline is a factor involved in purchasing the desired auto. Not anywhere on the horizon is it a consideration.

The Classic Car Auction scene during the past few years had a shake out of companies. The well known ones got stronger, and the lesser known went by the wayside. Our company is possibly described as mid sized, with Dana Mecum, Rob, Myers, Kruse, Barret Jackson being some of the larger companies. When Paul Merrigan first contacted us looking for a home for his Desert Classic Concours d'Elegance I was delighted to help him put this together at the beautiful downtown O'Donnell Golf Course. Where else do you get a Golf Course slap bang in the middle of a picturesque Village type setting, with sunshine nearly every day. 400 unique shops and restaurants in walking distance, and a townsfolk known for friendliness. In 2009 we will create an 8 day Classic Classic Car event starting with 3 days of Auction, a possible Vintage Grand Prix, and finishing with a enlarged Concours. Thank you for attending this inaugural event.