Remember 2004? Homes were still viewed as smart investments, and you didn't wince when your 401(k) statement arrived in the mail. Heck, the Dow Jones average was above 10,000 for all but a couple of brief periods that year.
Seems like the good old days, huh? For the collector-car market, it sure was. Prices were rising, but hadn't hit their peak. It was a good time to buy and sell.
What a difference five years make. According to auction magnate Dana Mecum, it's 2004 all over again-at least when it comes to collector-car prices. While attending Mecum's recent mega-sale in Indianapolis, where more than 1,200 cars crossed the block during four days of marathon hammering, we gleaned some insight from the man who's been at the center of selling American muscle cars and Corvettes for years.
A fuelie 327 car with a four-speed,...
A fuelie 327 car with a four-speed, this '64 coupe looked great in red. It was another no-sale at the auction, as its $80,000 high bid wasn't enough for the seller.
"The market is holding to 2004 prices," says Mecum. "It's important to remember, however, that 2004 prices were still double and triple those from 2000, so even though prices have gone down recently, they're still holding at strong levels."
That was evident at Indy, where we witnessed some comparatively good deals, some surprising sale prices, and a number of sellers who, apparently, didn't know it wasn't 2006 any longer.
"Prices [at the Indianapolis auction] were very fair," says Mecum. "There were a few cheap bargains, but also a few cars that broke the bank."
More than a snapshot of the current state of the market, the Indy auction brought some truly wonderful Corvettes out of the woodwork, including a '55 that served as a test mule for Zora Arkus-Duntov, a '60 model carrying VIN 0001, and the '68 coupe owned by Apollo 13 astronaut Jim Lovell-Houston, we have a small-block. There was also a green '69 L88 coupe that really stirred up the bidders, and while its high bid of $425,000 seemed very strong to us, it rolled off the block unsold.
This '55 race car was a test...
This '55 race car was a test mule for the legendary Zora Arkus-Duntov. In addition to the fairing behind the driver seat and cover over the passenger-seat area, it included an early small-block V-8. It was a one-of-a-kind piece of history and sold for a comparatively reasonable $310,000.
By the third day of the event, the sell rate had topped 65 percent, and Mecum reported a sell-through rate for the entire event of about 70 percent, suggesting that, despite the tough times, enthusiasts with means weren't sitting on their wallets. In fact, with nearly $40 million in sales, the Indy event was the best in Mecum's history.
"I'm a realist. I think the economy is tough, but we're taking the position that we're going to exist above it," says Mecum. "We spent more to promote this auction [Indianapolis]; as the economy gets tougher we're ensuring that in five years we'll be here. Our customers feel comfortable at our events and they have fun."
Indeed, you don't need to be a bidder to enjoy a Mecum auction. It's an extravaganza of American iron (and fiberglass), with open access to all of the cars in the auction catalog, as well as vendors hawking all sorts of memorabilia. Mecum has also been doing a great business in vintage neon signs, which adds an endearing glow to the event. So, whether you're going to buy, research a future purchase, or simply check out the cars and bidding action, a Mecum auction is a great place to gauge the state of the collector market and enjoy hundreds of vintage cars.
And if our experience at the Indy sale was an indicator, now may be a great time to buy the Corvette of your dreams.
Author's note: Details on Mecum's upcoming auctions are available at www.mecum.com.
Another of our favorites of...
Another of our favorites of the auction was this classic '57 fuelie car that sold for a reasonable $74,000. We love that Arctic Blue paint and white cove, too. It's just so 1950s.
How much is a VIN worth? This...
How much is a VIN worth? This '60 Corvette is distinguished with VIN 0001 for the model year. It was bid to $290,000, but the seller thought it was worth more.
Despite their rarity-only...
Despite their rarity-only 216 were built between 1967 and 1969-L88-powered cars are frequent auction finds. This green coupe was bid up to $425,000 but ultimately didn't sell. Given the current market conditions, it seemed a strong bid.
A red roadster with side pipes...
A red roadster with side pipes is always desirable, but more so if it's motivated by a big-block. This '67 was powered by a 327/automatic combination, which kept interest down. The high bid was $65,000.
This '68 427 car had low miles,...
This '68 427 car had low miles, a unique color, and was cleanly represented. Its selling price of $41,000 seemed more than reasonable and represents the deals available in a market that has seen a noticeable correction.
The Callaway Speedster was...
The Callaway Speedster was a stunner when new in 1991, and it remains one today. The original MSRP was $107,000 (the equivalent of about $168,000 in 2010 dollars) and only 10 twin-turbo examples were built. This one was bid up to $140,000 but didn't sell.
A great-looking C1, but this...
A great-looking C1, but this '54 model suffers from the problem that it's not a first-year '53 or a V-8-powered '55 car. This one was bid up to $60,000.
It looked like a big-block,...
It looked like a big-block, with its red-painted Stinger hood, but this '67 Corvette was a 327 car that was bid to $60,000-a price that seemed more than reasonable for a replica.
The '90 ZR-1 always warms...
The '90 ZR-1 always warms our heart. This great-looking, red-on-red example was bid up to $27,500, which is competitive with the sale prices we've seen of late for these cars.
A good example of a spot-on...
A good example of a spot-on sale price was the $45,500 paid for this '61 327-powered roadster. It was a 250hp car with a four-speed transmission. The buyer did well.
It was red, but this '69 coupe...
It was red, but this '69 coupe was otherwise saddled with a base 350. The crowd was looking for the big-block stuff and only bid it up to $22,000.
In the "Umm...yeah" category...
In the "Umm...yeah" category was this assemblage of Corvette bodies that constituted an odd-looking limousine. And, oddly enough, it found a new home for the princely sum of $25,000.
Another '57 fuelie, this red...
Another '57 fuelie, this red roadster sold for a strong $79,000. More than 1,600 of the 6,339 '57 Corvettes came with fuel injection, either in 250- or 283hp form. This was one of the 756 built with the 283-horse engine.
Shades of "Corvette Summer."...
Shades of "Corvette Summer." This late-1970s-style custom Corvette started life as a '68 model. A high bid of $12,000 was way less than what it cost to build years ago, but its dated features will likely make it a tough sell at any venue.