Ever wondered what makes a classic car? Marque (brand), rarity, originality/condition, and provenance are what really make a car collectible, according to Alain Squindo, Chief Operating Officer, RM Sotheby’s. He adds that they often use the term “collector car” to describe the vehicles they offer, as they may range in age from more than 100 years old to modern supercars just a year or two old. Excerpts:
What are the attributes of a classic car?
To start with, the most desirable models from marques with famous heritage such as Ferrari, Porsche, Aston Martin, or Mercedes-Benz often command stronger prices and are more highly sought after by collectors. Low production numbers and survival rates can also positively impact values and determine collectability; fewer than 100 produced is good, fewer than 50 is even better.
Even more significant is when a rare example is offered ‘fresh to the market’ out of long-term care. It presents an exciting ownership opportunity for enthusiasts as you never know when another example will be offered, which in turn fuels excitement in the auction room, and ultimately impacts bidding and final sales price.
When it comes to a restored vehicle, authenticity and restoration to factory specifications, both cosmetically and mechanically, are key considerations.
Does it have the proper components and identifiers? Likewise, there is also a fascination and strong appetite for highly original cars, a trend supported in part by the growing number of ‘preservation’ classes at concours events. After all, a car is only original once, and they can be just as valuable as a beautifully restored example. It all comes down to personal preference.
In the past, we’ve found that American-based collectors typically lean towards beautiful, perfectly restored cars, while European collectors are drawn to authentic, highly original examples. While there continues to be some truth to this, we’ve noticed this preference is slowly changing, with American collectors increasingly coming to appreciate originality over perfected restoration.
Lastly, documentation and provenance can be a highly significant attribute of value.
What marques and models are preferred?
When it comes to a collector car purchase, we always advise, first and foremost, to buy what you love. If you love it, you’ll ultimately derive the most enjoyment from it. If you’re hoping to one day see a return on your investment, we also recommend that you buy the best example you can afford and do your homework.
To speak broadly, rare, best-of-category, fresh-to-the-market examples from across all eras and genres are those that traditionally command the highest values.
Quality sells and, in today’s market, there is a growing gap between the so called “average” and the very best. People are willing to pay premium prices for the ‘best’, while prices have cooled for the less desirable and less rare examples.
When it comes to collector car values, Ferraris continue to be the perennial leaders of the pack, with rare, coach-built sports and GT cars of the 1950s and 60s commanding premium prices at auction. In recent years, we’ve also seen growing demand for supercars of the 1970s, 80s and 90s, as those who grew up with posters of such vehicles on their walls, increasingly find themselves in the position to realise their dreams and purchase their own drivable examples.
What would be the price range in US dollars?
One of the great things about the collector car hobby is that there is something for all budgets, with vehicles available at a broad range of different price points. For entry-level collectors, vehicles can be purchased for as little as $10,000 or less, while at the top-end of the market, prices span up to seven-figures for rare, extraordinary examples sought out by veteran hobbyists.
Does charisma of prior owners rub-off on prices?
Provenance, including celebrity or notable ownership, is certainly a key factor that impacts value, though not all former owners will affect price in the same way.
Whether you’re buying or selling, knowing a car’s complete history — and having the documentation to prove it — is one of the most important things to consider. Records such as factory-issued paperwork, documentation of notable ownership, service records, historic images, notes from previous owners, and magazine articles are helpful to assert provenance.
Among some of the more famous cars we’ve offered where provenance has had a significant impact are: most recently, Janis Joplin’s 1964 Porsche 356 Cabriolet, custom painted with a psychedelic ‘History of the Universe’ mural by her roadie Dave Richards, which commanded an incredible $1,760,000 at our 2015 Driven by Disruption sale in New York City; a 1967 Ferrari 275 GTB/4 delivered new to Hollywood and motoring icon Steve McQueen on the set of his film Bullitt, which sold for $10,175,000 at our 2014 Monterey sale, more than triple the previous record for the model; and the James Bond 1964 Aston Martin DB5 which appeared in both Goldfinger and Thunderball and brought £2,912,000 at our 2010 London event.
How much is estimated to have been traded in the years 2010-2015?
The collector car hobby is truly global in scope. In 2015, North American collector car auctions alone generated $1.4 billion in total sales, with many more transactions held in Europe and around the world.
RM Sotheby’s continues to raise the bar year after year with market-leading results; in 2015, we generated $525 million in auction sales — an all-time high for the hobby at large. This included the highest grossing collector car auction of all time; $172.9 million at our annual Monterey event in California.
What is your outlook for 2016 and 2017?
While there have certainly been some price adjustments for various marques and models across the board, as reflected in results from early 2016 sales, the collector car market is alive and healthy, and we’re continuing to see an enthusiasm and strong appetite from collectors for rare, high-quality cars that are offered fresh to the market. Today’s collectors are more educated and savvy than ever before; they do their homework and are more selective, meaning, as mentioned earlier, there’s a growing gap between the so-called “average” cars and the very best.
We suspect this trend will continue into the 2016 season. At our most recent Amelia Island, Florida sale, we saw numerous cars from across all segments of the market exceed estimates with several achieving record prices.