Collector car auctions in Monterey bring mixed results

MONTEREY, Calif. — By the time that the last classic car had rolled off the auction block, collectors had figured out that this wasn't going to be another year of rising values overall for what has become one of the top alternative investments.

During Monterey Car Week, with some of the most closely watched car auctions of the year, some $339.7 million of cars had changed hands, down from $396.8 million over the same period last year, reports Hagerty, a classic-car insurance agency that keeps the closest track on the transactions. Auction officials didn't seem discouraged.  "The 'best of the best' brought strong prices," says Dave Magers, CEO of Mecum Auctions.

Like rare coins, artwork, comic books or vintage Star Wars toys, classic cars have found a place as an investment that allows enthusiasts to enjoy their purchase while it generally holds its value or makes some gains. Despite a drop in the overall take from the auctions, there was encouraging news for those who hope classic cars will maintain their popularity.

While some cars that have typically appealed to Boomers showed a little price weakness, others that have caught the eye of younger buyers were up. So while it appeared that prices for Porsche's best-known sports car, 911 introduced in the 1960s, had weakened after years of increases, the younger crowd showed interest 944s and 928s, the the brand's lesser-known cars from the 1970s and 1980s, according to Hagerty spokesman Jonathan Klinger.

"The prices that are coming up are driven by a younger collector," Klinger says.

While overall records weren't broken, some classes did well. The most expensive car sold during the week, a 1955 Jaguar D-Type Roadster that won at Le Mans, was what Hagerty says was the most valued British car ever sold at auction. Five of the top 10 most expensive cars that moved were Ferraris.

Auction officials say it's hard to draw broad conclusions. It "depends on the car," says Ian Kelleher, managing director for RM Sotheby's, one of the major auction houses. "Good quality still sold well." 

Kelleher says collectors appeared to be favoring cars that were fully restored, avoiding the time and expense of restoring it themselves. One 1930 Cadillac with a V-16 engine went for top dollar, nearly $1.5 million, in mint condition.

But collectors showed eclectic tastes. Meredith Voboril of Los Angeles was the proud owner of an unrestored 1921 Stutz Bearcat that sold for $594,000 at the Bonhams auction. "They are built to last," she said. And despite the car's aged but perfectly original condition, she says they will keep it running and will drive it. "You got to run them or they will die," she said.

Muscle cars from the 1960s and 1970s remain a strong area of the market, says Mecum's Magers, whether it's a Pontiac GTO or Plymouth Superbird. Chevrolet Corvettes from the 1950s and 1960s are strong, but not so much for the later models.

As for expensive bargains, consider the Mercedes 300 SL. The 1950s sports car, known for their "gullwing" upward-opening doors, were selling for $3 million. "Now you can buy one for $1.5 million," Magers says.