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In the run-up to this year’s Monterey auctions there was much concern in the dealer community simply because so many high-end Feraris were about to be on offer. After the disastrous economy of 2009 and this year’s tepid recovery, were there enough buyers to absorb the sheer volume of high dollar Ferraris to make the Monterey auctions a success? With record total Monterey sales of $138m in 2008, then down to $120m in 2009, would 2010 be a boom, or a bust? Now that the dust has settled total sales are in at $172m, a whopping $52m increase from 2009, blowing away the most optimistic expectations. The buyers were there and they brought their checkbooks. The results are even more impressive when compared with the traditionally higher Scottsdale auctions sales, which were $153m in 2008, $129m in 2009 and $121m earlier in 2010. The record sale figures were in part due to the remarkable volume of sales in the rarified air of 7 figure cars. Looking at the big picture, Forty-three cars were estimated at a million dollars or more and thirty-four sold for a total of $83.4 million with stated commissions. That is a serious, unprecedented, number. As for high-end Ferraris, fourteen sold for over $1m at a total of $36.5m with commissions. This year’s Monterey auctions were simply the most successful group of auto auctions ever, period. The top end sales At the top end of the pecking order Gooding sold 1959 Ferrari 250 GT LWB California Spider Comp s/n 1603 GT for $7,260,000. From new with an alloy body, covered headlight, a full comp spec engine, an alloy ribbed gearbox and disc brakes, it had all the “bells & whistles”. There were four real bidders in the house. Two dropped out around $6M, with the under-bidder going all the way to $6.5M (before commission). For those who track long term price trends, we sold this same Cal Spyder for $860k in 1992, so not a bad long term investment. Gooding also sold 1961 Ferrari 250 GT SWB SEFAC Hot Rod s/n 2845 GT for $6,105,000, a surprise in historian circles as this Ferrari had its share of clouds in the past.. RM had a strong weekend selling the very elegant 1954 Ferrari 375 MM Berlinetta s/n 0416 AM for $4,620,000, a great car at a strong but market correct price. RM also sold 1959 Ferrari 250 GT LWB California Spyder s/n 1489 GT for a mere $2,612,500, but open headlights always sell well back of covered headlights Cal Spyders prices. And those that didn’t sell Meanwhile, at the other end of the spreadsheet 1958 Ferrari 250 Pontoon Fender Testa Rossa s/n 0738 TR did not sell at a high bid of $10.75M. This 250 TR was sold new to Brazil, crashed, rebodied as a coupe in Italy, then back to Brazil where it became a derelict before going to England to be restored. In recent years 0738 TR was crashed very heavily in three Historic races and simply had too many stories to bring more money. In the less-than $1m market In the sub-$1m prices 512 BBLM s/n 26681, the first of the Silhouette BBLMs sold for $880,000, a clear market reaction to the demise of the Ferrari Historic series. Reflecting the shifting sands of time and taste, two early coachbuilt Ferraris, 1953 Ferrari 212 Vignale Coupe s/n 0289 EU sold for $654,500 at RM and 1949 Ferrari 166 Stabilimenti Farina Inter coupe 037S sold for $462,000, also at RM. While rare and unique “one-off” very early Ferraris, they are just not a lot of fun to drive and have had little upside for years. In the more modern cars, RM sold Ferrari FXX Evoluzione s/n 142163 for $1,925,000, a lot of money for an ultra-high-end track toy while Gooding’s sold 1991 Ferrari F40 89216 for $583,000, a very strong price reflecting the quality of this F40 and the strength in the Supercar market. Mixed prices but some strong sales at the bottom In the under $500k range Enzo-era price were all over the place, although RM sold 365 GT 2+2 s/n 11667 for a very strong $181,500, Gooding sold 365 GTC s/n 12271 for a strong $266,750. Russo and Steel always have a few very high quality sub-$500k Ferraris are their centerpieces, selling 330 GTC s/n 11035 for a strong $275,000 and 365 GTC/4 s/n 15665 sold for an ultra-strong $165,000. Median sales prices were strong with an average sale of $182k at Gooding, $102k at RM and $62k at Bonhams. Both Russo and Steele and Mecum did a good job at the low-end of the market, with Mecum selling over 200 cars for $15.6m with a $75k average. Russo and Steele had $8m in sales with 100 cars sold at an average of $80k Strength at the top More than ever Monterey demonstrates a very strong and liquid market for the highest quality cars. Prices were merely strong-market-correct for those Ferraris with more modest histories, collectability and condition. Monterey has evolved into a multi-podium stage where quality counts and few of the middle or bottom level cars make it to the podium at RM, Gooding and Bonhams. The competition continues to be intense amongst these three to bring the best cars they can consign to the Monterey weekend. The lesser cars go to Mecum and Russo and Steele who each have a few centerpiece cars. Looking at the much bigger picture of collector cars as a part of the overall economic climate, do these strong sale numbers defy the general overall economic climate? Do the strong sales indicate an economic recovery is beginning? Is there a move of capital to collectables against coming inflation and/or Obama’s potential tax increases? While the global economy is at best uncertainty, taxes will have to go up and unemployment is high in almost all countries. Alas my crystal ball was recalled for defects and my available word count is running out. What most would agree on is that there was no lack of bucks or buyers at Monterey and the move was in the top end. Some surmise that a lot of aging baby boomers may be seeing this as a last chance to buy and enjoy really big cars. As was obvious at Monterey a lot of buyers just don't worry about the co-relation between the financial markets and the collector car market. Guys who buy million dollars cars are worth far more than $10 million, guys who buy $5m cars are worth far more than $100m. Follow the money We have multiple diverging markets in the Ferrari world. The deep pocket players are shifting some of their assets into high quality collectibles such as best-of-the-best Enzo-era Ferraris which are steadily moving up. The middle, the $500k to $1m cars Enzo-era cars and the 288s, F40s, F50s and Enzos are strong, but with modest upside. Enzo-era cars under $500k are doing fine. The bottom, which is flat to down, includes "lower tier" Ferraris such as the 308s, 328s and others, go to players with fewer assets who are focusing on preserving their limited liquidity (i.e. cash). As for the Montezemolo era cars, they only go down. A rising tide does not lift all boats equally.
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