By Glen Woodcock
Because a new season of old car auctions is about to begin, I’ve been giving a lot of thought to the state of the hobby (if hobby is even the right word any more).
Today, it’s become more of a business than a recreational pursuit.
What triggered these dark thoughts were the promo ads on the Speed channel for its live coverage of the Barrett-Jackson auction in Scottsdale, Ariz. starting Jan. 17, 2012.
Because of its inflated prices, I think this annual televised event has done more harm than good to the average collector/restorer of vintage vehicles.
I’ve also been thinking a lot about a recent television documentary on how the fine art market has been transformed from one where knowledgeable collectors bought works for their intrinsic value to one where speculators now rule. Art is no longer bought for its beauty, but as something to be added to the wealthy investor’s portfolio. Not to be enjoyed for what it is, but for how much money it can bring a few years down the line.
I think the same thing has happened in the world of old cars. The investors have taken over and prices have gone through the roof. For those people, the term “it’s a driver” has taken on a pejorative meaning. The vehicles bringing astronomical prices are restored to an almost flawless level and to drive one, other than on and off its trailer, would instantly destroy its investment value.
But isn’t driving what cars are all about? Yes, they often can be considered works of art, but they’re also functional machines meant to be used.
There’s been a welcome backlash to all this by a growing appreciation of survivors – cars and trucks that have stood the ravages of time and travel and wear each stone chip and parking lot bruise like a badge of honour.
Maybe we’re becoming so used to high prices that we can’t see the forest for the trees – me included. Last year I wrote about a 1920 Detroit Electric that once had been owned by Margaret Haldane Gray, wife of the founder of Gray-Dort Motors in Chatham, Ont. It was sold at RM Auctions’ Hershey event in October for $44,000 – well below the pre-auction estimate of $80,000-$100,000. For this reason, I called it “a real bargain.”
That prompted an email from Stan Uher, of Blenheim, Ont., known as “Mr. Gray-Dort” because it’s his expertise that keeps many of these landmark Canadian cars (1915-24) running and on the road. “Was it a real bargain?” Stan asked, “Or was it a realistic price for that car? I know that the Michigan fellow who commissioned the restoration probably had $80,000 invested in it, but you could also invest that much in a Manic GT or a Gray-Dort. But that doesn’t make it worth $80,000!”
I wrote back that I thought the car’s provenance, being owned by such a prominent and pioneering Canadian automotive family, made it well worth the pre-sale estimate.
But I’ve been giving that a lot of thought, and now I’m not so sure Stan isn’t right.
Maybe the Detroit Electric would have been better off as a survivor – kept in the condition in which it was when Mrs. Gray last drove it – the seat cushions a little worn from use, and dirt from Chatham’s streets still on its undercarriage.
We’ve reached the point where many common cars such as 1955 Chevrolet two-door hardtops are now priced beyond the means of most collectors. For instance, at last year’s Barrett-Jackson event in Orange County, Calif., a 1963 Volkswagen Samba Microbus sold for $217,800 – more than the $159,500 a 1964 Rolls-Royce Silver Cloud brought at the same sale.
The Website Westfalia.org says the bus was restored “to much-better-than-new condition … We can only wonder where and when it will pop up for auction again, since for that kind of coin we don’t imagine it will show up at any Magic Bus Extravaganzas.”
Exactly. The new owners wouldn’t dare go camping in it, so what’s the point? The Samba has ceased to be a viable automobile, to be enjoyed for what it is, and has become just another item in an investment portfolio.
I despair.
Article source: http://www.altonaecho.com/ArticleDisplay.aspx?e=3439477
Hello,
Does this article suggest that buying a volkswagen westfalia vanwagon is no longer avaliable.
I live on the island of kauai and it would be great to have a van.
Still available, but prices are rising.
John
so true. I bought my first 1970 westfalia in 85. camped offroaded
crossed a couple of rivers with it then sold it to a young kid from
banff alberta dreaming of road trips across the US . sold it to
him for $1500. and the adventure continues. 30 years later, I dont think
I can afford one now. crazy .
I agree to a point but can’t agree with everything. First, the prices are Barrett are very much inflated and do not reflect the actual prices seen in the true car market. Barrett is a huge auction but still represents only a small fraction of the actual collector car sales each year. Second, we do need prices to increase for the collector car hobby to even exist. The cost of restoring and maintaining vehicles will only continue to rise. No matter the interest in the market, if values do not also continue to rise it will become cost prohibitive for even the most devoted collector to maintain the classics they love. The reality is, if something old does not increase in value it generally becomes junk. Now we want to see realistic growth and speculators can overly inflate portions of the market (as we saw with Ferrari’s in the 80′s or Mopars in the early 2000′s) but speculator bubbles generally burst once the market hits even a small bump. That’s why the stock market, which is made up of purely speculators, jumps up and down by the minute while the collector car market may wobble (especially at the top where many speculators play) but for the most part remains steady even through tough economic times. The true market is still driven by enthusiasts and remains strong and steady today. So take Barrett for what it is, good entertainment, but don’t mistake it for a true reflection of the collector car market or prices.