2016 And The Year Ahead

No matter where your allegiance lies insofar as Manufacturer when it comes to “Collector Vehicles”, there are certain vehicles that can transcend mere bias.  Everyone involved with the “collector hobby” realizes that some vehicles are to be added to any collection if they become available.

Whether it is a post-war “Woodie” wagon, or maybe a Cadillac Convertible or even a “suicide door Lincoln” you simply add the piece when you run across it.

Rarely do I make predictions for the road ahead in “collector vehicles” other than to point out the inherent rise in values for the overall health of the marketplace.  However…. 2016 could prove to be the best “buyers market” since the economic collapse after 2007/2008.

I refer of course to the fall in the “oil market”.  The number of collectors in classic vehicles throughout the Texas/Oklahoma region have been almost immune to the “recession”.  If you follow Mecum Auctions as I do you have seen the Dallas and Houston Auctions remain impervious to the trend down in value during the recession. That is about to change.  With millions and even billions of dollars of value being lost in the energy sector those who count on the income will need to “thin the herd” as far as their collections.  Make no mistake, the oil sector contains a great amount of car hobbyists.  It is, was and always has been a direct tie-in.  That means the values at auction will be down this year (and possibly for a couple after that) and the buyers with spendable cash will be down as well.  This puts the Dallas/Houston Auctions on a level field with values across the nation.  And that is great news for collectors in other areas of the nation.

I am not saying the value of cars everywhere will be down to the extent of what runs through Texas this year.  And I am not predicting falling values in the market.  I am saying the “overprice factor” of the past Texas marketplace will be going away for a while.  So whether you lean towards a 1946 Pontiac Streamliner Woodie Wagon or more towards a

1970 Pontiac GTO Judge (Blue) or 1971 GTO Judge (Red) you need not ignore the Texas Auctions as in years past.

Davey Boy

Bloated or “Chubby”?

When the final year for the “original style Camaro came around the model year was 1969, and despite the “454” emblems on the pictured car it was not a “factory choice” back then.  The cubic inch limit remained the 396 for big blocks other than a handful of “COPO vehicles” that snuck through.

For the redesign in 1970 (technically known as 1970 1/2 for collectors) not everyone liked the new style.  Production had been 230,799 Camaros for 1969 and fell to 117,604 for 1970.  Collectors all try to explain the big drop to a limited production run due to a labor strike, but facts are that the 1971 production fell to 107,496 and then in 1972 it went even lower to 68,656.   So no matter if you are a fan of the redesign or not- most buyers at that time were not.

The reason I bring any of this up is due to the age old argument about the “fat Mustang years”.  The redesign of the Camaro added 2 inches to the overall length yet people say the Camaro got much bigger.  Maybe they were referring to the .4 (less than 1/2 an inch) increase in width.  The one loss with the changeover was that Camaro no longer came in a convertible style.

For the Mustang its final year for the “Original style” (yes, technically there had been redesigns before) was 1970.  The designers needed a larger engine compartment for the available engine choices and decided to make the car seem larger to compete with the true “Muscle Cars”.  Basically it was time for the Mustang to grow up.

Their new design was this.  1 inch more in wheelbase; it was now 109 instead of 108.  (The Camaro did not change their wheelbase from the 108 in 1969.)  Where it grew ever slightly was also the overall length- from 187.4 inches to 190 even.  The biggest gain was the width from 71.7 to 75.  All that rear sheetmetal also raised the base weight almost 180 pounds.  The look made the Mustang seem much larger than it really was.  To buyers or those who test drove it there were glaring deficiencies with the design.

You sat down much lower it seemed in the seat and the dash was higher and with the taller roofline and those huge rear quarters there was a severe blindspot.  Add the angle of the rear window and the rear view through the mirror was as if you were looking through a gun slot in a tank.

The redesign for the Mustang also saw production fall from 1970 (197,046) to 1971 (149,628) to 1972 (125,093).  Despite what many “Collectors” consider ugly years for the Mustang it still outsold everything in its class (Pony Cars) just as it had since the model was introduced halfway through 1964.  And it did so by impressive margins.  Today because of those production numbers you can buy a Mustang for about half of what a Camaro goes for.  And that will continue to earn the Mustang “collector status”.

Davey Boy

Review For The Year

For the past year (2015) I have been rather preoccupied with issues that have sidetracked my pursuit of Muscle Cars.  While I have bought and sold a few during the year, I have not devoted the time required to maintain this website, nor the time required to develop my business plan for a “Dealership”.

The header depicts 2 of 1969’s best example of what embodies a “collector vehicle”.  The white car is a 69 Chevrolet Impala Convertible.  The epitome of open top comfortable cruising for a vast majority of people in the hobby who want a reliable and comfortable ride for their summer.  Standard V8 for this car would have been the 350 small block with power up to the big block 454 available.  Wire-look hub caps and the red vinyl interior complete the cruiser look.

The other vehicle is of course a 69 Pontiac GTO.  It rides on “red-line” tires and ralleye wheels.  Under the hood was the 400 big block with a 4 barrel carburetor.  Transmission for this one was a floor shifted automatic.

The past year has seen dramatic rises in value for most of the Muscle Car genre.  The basic cars have appreciated the most (percentage-wise) while the more limited edition versions have gained but at a smaller rate.  By this I refer to cars such as a Ford Torino that may have previously went for under $20,000 now selling for around $26,000 while the Torino Cobra-Jet version was $26,000 and now lists around $30,000.  ($6k versus 4k).

I hope to actually get a few new posts in this year and keep everyone up to date on a few business meetings I have in the works to develop my “Dealership” plans as well.  So anyone with spare cash can reach me through “WordPress” for consideration as well.

To all I wish a joyous, prosperous and Happy New Year.

Daveyboy

Indianapolis Auction Over- Final Notes

Okay, so maybe it is the “Anti-Muscle Car” but this 1959 BMW Isetta sold for a very respectable $33,480.  Normally these go for closer to the $25,000 price point.  This one had what was called the “Deluxe” front door and both a rear outside luggage rack and an interior luggage rack behind the “bench seat”.  You may have heard/read me referring to these as “Urkell-Mobiles” before in reference to the Steve Urkell character from the TV show.

This beauty with its “Piranha Grille” would be a 1950 Buick Roadmaster Convertible and with its original 320 cubic inch Straight 8 cylinder engine and Auto transmission sold for a cool $96,000.  Considering its immaculate appearance, and original equipment this will go up in value in the coming years very nicely.  Wire wheels, and those “Gangster White walls” only add to its great style.

Similar in style was this 1949 Buick Roadmaster 4 door.  Since it was a 4 door, the price drops.  Despite having the same engine, and having went through a restoration 5 years ago, this one sold for a bargain to its new owner.  $13,000 took it home.  Plus sales commission.  Style and desirability are always the driving force for collectors and they pay accordingly.  For the seller this was a big loss dollar wise but it makes room for the next vehicle in their garage.

For the same $13,000 someone bought this 1972 Ford Mustang with its 351.  This particular vehicle had the somewhat rare “Q Code” 4 barrel edition under the hood which was the top dog for 1972 with a rating of 266 horsepower.  The previous year the “Q code” was the Boss engine and put a net 330 at the pavement.  Even the “M” engine for 1971 had a better 285 rating.  The drop in compression was very evident for the end of the “Muscle Car Era”.

Just to update previous picks from the auction……

The Blue 1970 Superbird failed to find a buyer even though the bid went up to $250,000.   Another (Yellow) 70′ Superbird did sell for $145,000 with a 440/375 hp engine under the hood however.  I think the seller should have turned the “Blue” one over to a new owner, but what do I know?

Also the Metallic Black 1969 GTO I listed previously did not sell despite a high bid of $35,000.  And the yellow “Split-Bumper” Z28 was pulled from the sale, possible a sale before the gavel, but I am not sure.

Davey Boy

Quick Update

For those who tell me I rarely follow-up on my posts here is an update on recent writings.  The Mecum Auction is underway and while still far from over there have been a couple of vehicles to cross the block of note.  First would be this 1972 Oldsmobile 442 with its original 455 W30 package.  Prior years were the top performance vehicle you could buy in an Oldsmobile Dealership.  The 1972 could also be said the same thing despite being less “performance” than it’s predecessors due to the regulated compression loss for model year 1972.  This was the final year for the body style and this vehicle had the bucket seat interior and was quite nice as far as condition.  Most fans of the 442 view the 1970-1972 the best looking of the 442 lineage.  This car sold for $22,500.  That equates to less than half what a 1971 442 with a W30 package would cost.  They routinely run upwards of $80,000 in this kind of condition.

The 1966 Fairlane 500 with its 289 listed in an earlier post sold for a very reasonable $14,000 which is well under what the value should be.  Nice purchase for someone.  The 1971 Red Corvette Convertible got a high bid of $10,000 and did not sell. The deal with any auction is that you need the right buyer for a vehicle or nobody will sell anything.  Same deal with the  Green 1967 Dodge Coronet with the “Hemi Hood” which with a high bid of $12,000 was well under what anyone would sell this car for.  Check previous posts for pictures of these 2 since I see no need to repost photos.

A pleasant surprise would be this 1965 Ford Mustang Convertible.  With its original 289 V8 engine it sold for a respectable $27,000.  While you would imagine an original Convertible should sell for slightly more you need to realize that the 1965 Mustang sold 559,451 units with 73,112 being convertible versions.  Add in the “1964 1/2” production of 126,538 with its 28,833 convertible copies and you have one of the few convertibles ever sold in excess of 100,000 copies.  Normally early Mustang convertibles run closer to $22,000.  Not outrageous but this shows where the market is headed and it is UP !

Makes me curious where this 1971 Chevrolet Camaro “Split Bumper” RS/Z28 with its 350 small block will end up.

Or better yet this 1970 Pontiac GTO Judge with its 400 cubic inch Ram Air 4 intake and 4 speed manual transmission.  Only thing better would be if it had the 455.

Davey Boy

 

 

 

Still Kicking Tires

This 1967 Dodge Coronet with its 440 cubic inch engine should be a fairly desirable car at Mecums Indianapolis Auction.  The only visual knock against the car would be the “Hemi Scoop” on the hood when it does not have a Hemi under the hood.  Such things seem picky but for what Mopars routinely sell for even at Auction, the seller would have been better off with a correct hood.  Why spend $300 for a scoop when the buyer will discount a couple hundred because it has it?  Indianapolis is billed as the “Largest” Auction not just for Mecum but for “Collector Car Auctions” in general.  There have been times when the January Kissimmee, Florida Auction has actually moved more cars however.  Generally Mopars are among the highest value vehicles as far as American Muscle Cars are concerned, with the top prices being the 426 Hemi vehicles in particular.

Special vehicles such as this 1970 Plymouth Superbird for example represent the top of the mountain when it comes to cars from the “Muscle Car Era”.  This particular vehicle only has a 440 engine, however it was prepped for use by the EPA for running 100 mph+ down a runway to “sniff exhaust fumes” from jet aircraft during takeoffs.  People who know the history of engines from the “Era” know that from a standstill the 440 actually accelerates faster than the 426 Hemi.  It is only towards top end that the Hemi’s added horsepower pays off with higher speed.  Add the fact that the Superbird was more refined than the 1969 Dodge Daytona winged car, and had better finish quality and this becomes the “Winged Car” you want in your garage.  You also have to love the fact that Plymouth put simple “Dog Dish” hub caps and a “Vinyl Roof” on their top line Muscle Car.   SWEET indeed.

This 1971 Chevrolet Corvette is technically not a Muscle Car, but rather as Chevrolet labeled it a “Sports Car”.  The fact it has 2 seats and no rear passenger area would be the requisite detail for that to collectors.  The other “drawback” is that although a convertible, it has a 350 cubic inch small block engine.  In 1971 there was an option to get up to the 454 big block engine in the Corvette.  Substantially more power from a substantially bigger engine.  Should you be in the market for a Muscle Car, do not be fooled by lower horsepower ratings on 1971 models compared to their 1970 counterparts.  The rating system changed from “gross horsepower” which was rated at the flywheel for 1970 compared to “net horsepower” which was rated at the rear wheels for 1971.  The 1972 model year was the big drop in horsepower because of federally mandated drop in engine compression.

These vehicles and a couple thousand more will be sold at Indianapolis in the Mecum Auction during the several days.  Get your checkbooks out and “Happy Shopping”.

Davey Boy

Indy Auction Set To Start

This 1969 Pontiac GTO with its 400 cubic inch V8 and 4 speed transmission goes on the block at this months Mecum Auction in Indianapolis.  With one repaint it should be a relative bargain for its new owner.  The knock against it for authenticity is the fact it has Metallic Black paint which was not yet created in 1969.  That would first show up on Dodge pickup trucks in the future.  Pontiac vehicles are even more collectible now that Pontiac has ceased to exist as a “Manufacturer”.

For some time now I have been trying to create a “Collector Car Mega Store”, and while not to any success so far, I continue on the mission. All while Banks pay return on your cash of 1 to 2 percent and act as if they are doing you a favor.  The stock market continues to churn your investments to buy newer and better homes for your broker.  Gold and silver continue to rise and fall and even your real estate has been plowed under in its value.  The lone survivor in investing continues to be “collector vehicles” overall.

Cars such as this 1971 Plymouth ‘Cuda with its 426 Hemi and 4 speed pistol grip equipped transmission are the “Holy Grail” for collectors. The engine and transmission combo make for a 1 of 56 combination for the year of production.  Total production for Barracuda/’Cuda in 1971 was a mere 18,690 to start with.  That makes it low volume to start with.  Add the expense of $1082 to the $3,155 base price and you see why few selected the Hemi engine.

The “Collector Hobby” has had its downturn and while new records continue to be set at auctions, there are plenty of vehicle to make money on.  The ability to routinely make money on buying and selling is all in knowing what to buy and where the market is headed.  My assessment is with the proper inventory and level of investment you can make a “Return On Investment” somewhere in the 25% range.  That is “NET” return before taxes and after paying your overhead, salaries, cost of inventory, insurance, and the actual cost of the building.  Between sales, servicing, restoration, consignment sales and other revenue sources the potential is there to even exceed that number given time to establish the business.

Even this 1966 Fairlane 500 with its 289 and automatic transmission is a sought after “Collector Vehicle”.  While a GT or GTA version may be worth $20,000 and up the base model can still draw $15,000.  All in a car that stickered for around $2,500 when sold new.

So as it says in my “description”…… “INVESTOR NEEDED”

Davey Boy

Where I Have Been And Why I Am Back

As an “Internet Journalist” I have the opinion that people want to hear what I have to say. Now that does not mean you have to agree with me.  And it certainly does not mean you need to hang on every word I say or follow along with any of my business practices.  What it does mean is that I feel there is something I have to share and to enrich you or the automotive community as a whole.

This being said, the internet is full of companies claiming to give a journalist the platform to share his or her opinions with the promise of actually getting paid for it.  The problem is those companies all seem to be blowing smoke when they make their claims. They want you to be a member for months and months before you qualify for payment then they give mere pennies while they rake in dollars.  Typical B.S. for today’s society yet sooner or later it all comes to light and those Multi-Million or Multi-Billion Dollar companies end up being worth the mere pennies they pay out and the only person who makes money is the guy who started the business and then sold out to “Investors” who now own “Toilet Paper”.  The actual “authors” move on to the next new deal and keep plugging away.  To them it is the words that drive them not the profit.  In the collector vehicle business the money is in the cars and the concepts behind buying and selling and even restoring them, not in writing about how it was done.

Enough of my rants and ramblings and onto the subject of discussion.  The New Year is almost upon us and January means the “Auction Season” is here.  As I have stated in the past… to most it means Arizona but to me it means Florida.  The hype and “show biz types” tend to go local and stay in Arizona since it is in their area of the country.  That is fine with me because there are more cars and more bargains in Florida at the Mecum Auction.  This has grown to become the “Largest Auction” of the year with around 3000 cars crossing the auction floor.  And that number is still climbing every year.  The 1970 Mustang Convertible shown is up for sale this year.  Even with its 302 V8, it makes a nice summer driver.

 Also crossing the block will be this 1986 Pontiac Trans Am with its 305 “tuned port” V8.  These vehicles and ones from its era are gaining traction as “Collector Cars” due to the fact that in most states they are now “emission-exempt”.  That means you are now able to retune or replace the engine without needing to install catalytic converters or smog devices.  Despite the 200 to 300 horsepower available from “factory versions” of these, you can now legally get 400 plus from the GM small block V8’s without spending more than the value of the car.  The added benefit of using this car over its 1960’s or 1970’s counterpart is that you gain better handling for the street or the track in stock form.  You also get vastly improved brakes with discs VS. drums (for earlier versions).  Third reason and most importantly for “new” collectors is that this car can be bought for around $10,000 in most parts of the country versus $20-30,000 for a “Bandit Trans Am” or even $50-60,000 for a first generation T/A.

 Then for the “hard-core gearheads” we get to a vehicle that probably represents a “Last Hurrah” for the Muscle Car Era.  This is a 1971 Dodge Dart Demon GSS.  The GSS designation is due to it being sold and equipped through “Grand Spaulding Dodge” which was better known as “Mr. Norms” dealership.  Mr. Norm was a “Muscle Car Icon” during the time of the Muscle Car Era and vehicles left his dealership with certified “dynamometer” papers to show what they were putting out in the power department.  He was the driving force behind several of Mopars “enhanced” models.  Because of the fact his dealership would drop a bigger V8 into your new car even if the factory didn’t offer it, he was also a driving force behind the “Horsepower Wars” of the 1960-70’s.  This particular car has the “Six-Pack” setup on its 340 cid engine.  And because it is a Mopar with “history” it will probably sell for serious cash and deservedly so.

 Final car for this post is this 1970 Ford Torino Convertible.  It retains its 351 Cleveland engine and 4 barrel carburation just as it left the factory with.  The Torino does not get the following of the Mustang but it was Fords true “Muscle Car” representative.  It was a midsize vehicle and every power option was available for it that Ford offered up to and including the 428 and 429 Cobra Jet engines.  Add a top that comes down and for around half of what a Oldsmobile 442 hardtop or Buick GS 455 hardtop will cost you.

So while these are only 4 of the 3000+ cars waiting to run through Mecums January Auction, they represent a wide range of what is out there.  Happy bidding.

Davey Boy

Expanding The Hobby and What Needs To Be Done To Save Collector Vehicles As a Business

As the photo from the January 2008 Gooding Auction in Arizona depicts, the “Collector Car Hobby” is decidedly an “Old Caucasian Guy Hobby”.  Therein lies the problem.  Whether anyone likes it or not, and despite claims to the “increasing” health of the  hobby of “Collector Vehicles”; there needs to be fresh blood or the “hobby” will eventually die.  That is because the hobbyists are eventually going to die and as every auction has shown the heirs seem to be more interested in “cashing in” than they are in continuing the legacy that was started.

While everyone in the “hobby” dreams of finding that million dollar car that puts them on the map as a collector, most simply collect cars that mean something to them personally.  The Auctions that come every January in Arizona are big draws for buyers as well as the casual fan of the “Old Cars”.  But those over priced multi million dollar Ferrari’s and the like are not helping to draw anyone new into the hobby.  A first time buyer sees the auctions on their Cable ( or Satellite ) Television feed and thinks these are what the “hobby” is all about.  The truth is they amount to very little in actual count.  There are somewhere around 10,000 cars a year that are run through “major” auctions and few draw the million dollars you see on television.

Average prices are closer to the $50,000 mark and even that is a steep price for admission to the hobby for a first time buyer.  I don’t have a solution to the problem of getting new people into the hobby, except to say the way to grow the hobby is to bring in a bigger demographic for your base.  That means “minorities”.  Hispanics, Blacks, Asians, any minority.  The Rappers and “Hip/Hop” artists seem to be into flashy big dollar vehicles that are new and the “Pro Athletes” are as well.  Most Hispanics in my area are into vehicles that cost much less than the $50,000 for an average auction vehicle.  I cannot count the number of $2000 cars I see daily with $3000 worth of rims and tires on them.  Hispanics who are into cars still want “flash” but are on a budget it seems.  The 1972 Ranchero with it’s 351 is a great choice for a vehicle with “Hispanic Appeal”.  There are “Rappers” who are into cars as well.  Snoop Dogg comes to mind with his Bonneville convertible and for athletes we have Reggie Bush with his Shelby Mustang to name 2 off the top of my head, but there is a serious shortage of “Color” in the collector ranks.  And that needs to change.

I would like to partner with someone who belongs to a “minority” to put a new “face” on the hobby and bring this “Collector Car Business” to a whole new level.

davey boy

Again With The Auctions

Those who have read posts from me before know I am a fan of Mecum Auctions.  Their just completed Kansas City Auction sent many reasonably priced vehicles to new homes.  Those who have read my posts also know I prefer to deal more with “fringe” vehicles rather than “popular” Muscle Cars.  The reason is simple.  Instead of forking out $50,000 or more for a single car, I can find 3 or 4 to buy with that amount of money.  And to be honest, a 1971 Mercury Cyclone Spoiler with a 429 CJ is as quick as a Chevelle SS 454 from the same year with the average driver behind the wheel.

The 1969 Dodge “flat-nose” pickup shown is not close to being a “Muscle Car” but is still a very good “Collector Vehicle” with a large following and for the mere $5750 spent for its bid price, the new buyer should have enough cash left to repair or replace it’s needed interior.  It did have a 318 V8 engine with a 3 speed manual transmission for some pep…. most common for the vans and the van/trucks during this era were straight 6 cylinder motors.

Another “flat nose” would be this 1972 Ford Econoline 100 Super Van.  It had the aforementioned 6 cylinder with a 3 speed manual transmission and for the $4250 winning bid its new owner can afford to get a nice “Hippie Van Mural” paint job done on it as well as the shag carpeting and 12 volt mini-fridge.  You simply do not find a lot of older vans still running around even at “Car Shows” anymore.  Somewhere there needs to be a “Restorer Shop” that still cranks out “Hippie Van Conversions” for those of us who still appreciate them.  Maybe there still is on the West Coast.

Then we have a trio of interesting vehicles.  The red Plymouth Sport Fury with a V8 engine went for $12,000 despite being a convertible and also being a Mopar.  They tend to go for twice that amount and that is when they are in a lot worse condition as well.  This one with its decent paint and new convertible top should be valued in the $30,000 neighborhood.

The “Powder Blue” 1966 Mustang Convertible had a 289 under the hood and went for $13,500 which was not a bad price even for a car that had been in a flood.  The 1966 models did not have the extensive electronics we have today so minimal damage should have occurred to the vehicle.  Early Mustang convertibles usually run in the low $20,000 range due to the fact there are so many still around.  During the 1965-1966 model years the Mustang was the best-selling convertible in America in fact.

The red 1966 Mustang went for $9750 with its 289 V8 and automatic transmission which is about $6000 less than its value in most areas of the United States.  Again this is because they built 607,568 total 1966 model Mustangs.  First thing to change on this one would be to return to the stock 14 inch tires and rims and get rid of those 17 inch ones.

The final entry for this post would be this 1991 Cadillac Allante which sold for $4750.  Even missing its hardtop this car values in the $12,000-16,000 range and with a hardtop can fetch close to $20,000.  Hardtops can be found for around $2000 and paint it for another $600.

So basically for the price of that $60,000 big block Chevelle, here are  6 vehicles with potential to double your money on and that is something the Chevelle will take years to do.  But none of these can outrun the Chevelle…… even with a bad driver.

Davey Boy