Final Bids at Barrett-Jackson Scottsdale: Too Low, Too High, or a Mixed Bag?

By Jim Brennan

UDMan

Within the last week, Barrett-Jackson held their Spring Auction in Scottsdale, Arizona. This is THE sale that usually determines the pricing that prominent collectible automobiles and trucks might be able to command over the next year. Because of the importance of this particular event, it is being covered by almost every automotive blog, print journal, and cable television channel, including Speed, Car and Driver, and of course, CarDomain. Based on the winning bid prices hammered at the close of the event on Saturday evening, it looks like the collectible car is being sought as a safe haven for an attractive investment. Out of over 320 Cars, Trucks, and Motorcycles sold on Saturday, 125 of them fetched over $100,000, Like the car illustrated below, the Buick Blackhawk, which sold for an astonishing $522,500, on a Scrap Title no less! Only one vehicle went over $1 million, and that was in fact the Ford Tri-Motor Airplane.

If we look back to the Friday event, of the nearly 230 vehicles sold, only 31 reached or exceeded $100,000. That is not to say that any of the other 200 or so cars, trucks, or cycles (for that day) didn’t reach a record setting price, it’s just very hard to come to any conclusion, just based on pricing alone. Along that line of thinking, I did see certain trends in this years auction, and will try to highlight them here:

Pricing attached to Charity Funding
There were a number of cars and trucks that went through this years auction that proceeds from the sale of the vehicle were going to be distributed to certain charities. When this happens, it is very tough to assign a real value to the vehicle because the bidding tends to go a great deal higher to “help to cause” as it were. Plus it can be used as a tax deduction, and you get a car! Many of the vehicles that achieved strong sale numbers would have never achieved the same amount if it wasn’t attached to the charity. A good example of this? Lot #1306.2; This is a 1967 Plymouth Barracuda, fabricated as a tribute to Boyd Coddington by West Coast Customs. Powered by a 6.1 Liter/500hp SRT8 HEMI with a 727 TorqueFlite, dual custom exhaust and Magnum Force Mustang II front sub-frame and suspension. Proceeds to benefit the EAA (Experimental Aircraft Association) Young Eagles. Chaired by Harrison Ford, the EAA Young Eagles program was launched to give young people the rare opportunity to experience flying in a general aviation airplane. The program is suppose to enrich the lives of young people, and open their eyes to new possibilities. Harrison Ford even offered the winner of this car a meet and greet after the sale. Now is this particular car worth the final bid price of $220,000? You be the judge of that.

Pricing that is Foolishly High (no matter what the car is)
There will always be optimistic pricing in any auction, and the Barrett-Jackson people are true professionals at getting the highest price obtainable for each and every one of their consignments. If any one of you watched even part of the coverage either on-line, or on Speed Channel, you know exactly what I mean. Case in point: Lot#1316, the Very First 2010 Chevrolet Camaro. This also was a lot that all the proceeds went to the American Heart Association, and the winner will be given the opportunity to order any Camaro to his or her own taste, from ordering a V-6 or a V-8, right down to the option level. Is having the very first Production Chevrolet Camaro worth $385,000? My gut reaction would be no, but again, tell me what you think.

Pricing that seems high, but is Quite a Bargain
Sometimes, what looks like outrageous pricing, really isn’t. On the contrary, it just may be the deal of the sale. to illustrate my point, I’m going to highlight 2 lots, one Automotive, and one that was built by a car company. Lot# 1305, a Saleen S7 Twin Turbo Sports Car. Now, I will be the first to say that the Saleen S7 was never my dream car, but there is no denying the fact that not only are S7′s rare, but they are powerful, fast, and a bit unusual. They are also discontinued, as this is the last one produced. The MSRP has been noted as being over $800,000. So what did this gem sell for? Try $412,500 with the buyers premium attached, or about 50% of it’s original retail price. I would put that one down as a bargain.

The other bargain is this: Lot# 1307, or the Star of this years Barrett-Jackson Auction, the 1929 Ford 4-AT-E Tri-Motor Airplane. It has history (one of the first metal mono wing airplanes produced), it had provenance (It was shot while on the runway during the attack of Pearl Harbor), it has been restored to like new condition by craftsmen who know antique aircraft, and it was sold for a little over $1.2 Million. Does that sound like a lot of money? Not for this machine, since the restoration costs would reach well in excess of $6 Million if you tried to duplicate it. Did it deserve more? You know the drill, and let me know what you think.