MMR Community Newsletter

February 14, 2014 Comments (0)

It is the Worst of Times and the Best of Times

With prices of older cars soaring, the opposite is happening with once unaffordable luxury coupes that have a little age. Are these once high priced cars the auction classics of 2034? This week’s images highlight future classics that are affordable and available NOW! (For more of these images SUBSCRIBE to our weekly newsletter.)

Mercedes

Something Is Wrong with This Picture

Things are happening that don’t add up. First, the market prices being paid for classic cars are at an all time high. Second, the world is being treated to an abundance of auctions, now coming in clusters, like traveling circuses. Third, car shows are now as ubiquitous as church bake sales. These shows are making us aware that there are far more great old cars out there than we ever imagined. So, reviewing these phenomena in reverse; are these new found cars fueling the growth of auction events around the world? And if there is a new found abundance of cars, why are the prices paid continuing to climb? There are only ten Ferrari 275 GTCs. They don’t make a market. They make a club. But there were almost 50K made of the 230/250/280SLs. And people are paying stupid prices for them. People say they are great cars. I think that for $100K to $150K you can easily find far better cars, i.e.; Ferraris 355s & 550 Maranellos and Porsches 996s & 964 Turbos, and have change to keep them running.

Ferrari

Auctions: We Reveal the Winner! And it Ain’t You.

Recently we wrote about a successful car dealer who felt he could drive a fast car well because he was a successful car dealer. This is commonly called an assumed transference of competence. It happens in varying degrees to all men who enjoy a modicum of success or power. Give us credit for one thing and we can figure out almost anything else. I had a successful friend who told me he could perform an appendectomy on himself because he saw a doctor do it on TV. He said it looked easy. Individual auction buyers and sellers fall into three categories. The top level men are both intelligent (Intelligent being defined as showing the ability to easily learn or deal with new or difficult situations) and smart (Smart being defined as knowledgeable and aware of how a given game is played), and generally wealthy. That is generally why. The middle group, who learned the auction game by watching TV is intelligent but not so smart and may also be very wealthy. And the lower level, where most of us fall, are not brilliant but smart enough to know it and fearful enough of being found out that we either sit on our hands or do exactly what the smart guys do; hire pros to help them achieve their buy/sell goals.

Think of it this way: there are three parties involved in an auction: the seller, who never really knows exactly what he is going to get; the buyer who knows exactly what he can afford but generally doesn’t know exactly what he is buying; and, the auction house who have a pretty good idea about what they are selling and are always guaranteed to get something but can never lose. Except when dealers are involved, the auction houses are the only pros in this game.

Unless, of course, you the individual, bring your own. If you are either buying or selling, bring a pro into the equation from the beginning. Pros can help you assess value, insure that your car doesn’t go off at three in the morning if you are selling, and help you understand bidding. See our Goods & Services Directory for the names of companies that can help. (HINT: use the category filters in the left column of the directory; click Auction Advisors under Specialty Services and then click the Search button.)

Denise McCluggage My Word

Denise has a fascinating story this week about Peter Collins and the time in which he drove. We found this interesting comment about him after the YouTube video we are featuring:

Peter Collins was one of the most promising pilots from the ‘50s. I liken it to François Cevert. They even had similar passages in the category. In 1956, Fangio won the world championship, because Collins let him pass. Collins was a big friend of Mike Hawthorn. Hawthorn got out of F1 in ‘58, because of the death of Collins. Like what happened with Jackie Stewart, who left the class, because of the death of Cevert, they were great friends.

Peter Collins

Have a great weekend and don’t forget to pass this on to a friend.

Peter Bourassa

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