COLLECTOR CLASSICS
Has the vintage car bubble burst?
Classic cars, believe it or not, are much like real estate in major Canadian cities: Asking prices are still high, but sales are getting slower. The fall auction held mid-October in Toronto by Collector Car Productions shows both strength and weakness in the marketplace.
For example, a desirable 1956 Ford Sunliner convertible that looked to be in decent driver-quality condition sold for $17,600 with the 10 per cent buyer’s fee. A much better restored Sunliner with lots of options and upgrades, including modernized power steering and disc brakes, was a no-sale at a high bid of $46,000.
I have watched similar cars at this same auction sell in past years for up to $85,000. The market is changing. The Ford Sunliner sales tell the story.
The people who loved these cars when both were younger are crossing the divide. Many collectors in their 70s and 80s are downsizing their garages. Some are selling all their collector vehicles. The collectors who are still buying these cars have become extremely price conscious. So there are bargains to be had.
At the same auction, a rare Canadian-built 1954 Meteor Rideau Sunliner convertible crossed the block selling for $15,900 — that’s unheard of. Ford of Canada built about 400 of these Canadian-only convertibles, and only a handful are left.
I don’t know if this was a good car or one built from parts of others, but it sure looked like a bargain for some lucky buyer.
On the other end of the auction results, an extremely collectible 2006 Ford GT brought the auction hammer down at $352,000. And a well restored and highly optioned 1957 Chevrolet Bel Air convertible drew a winning bid of $74,800.
I believe these are still bargains, because the top sellers at Canada’s most recognized classic-car auction would likely draw the same money at sales south of the border — in U.S. funds. Buyers could earn up to 30 per cent on their money, simply by adjusting the geographical location for the next sale of the car. However, one must factor in transportation, auction fees and other costs. So a big profit isn’t a slam dunk.
As someone who has been a keen observer of the hobby for the past four decades, I have never seen a more challenging market for collector vehicles in Canada. They still sell, and many for decent money. But there are fewer buyers and cars stay on the market much longer.
An example is a recently sold 1937 Buick Special four-door convertible. The Ontario owner did a very nice restoration on the classic, which had been completely disassembled and then put back together with rebuilt mechanics, genuine leather upholstery and wide whitewall radial tires.
At the spring auction, the bidding didn’t come anywhere near the owner’s expectation of more than $50,000. Certainly, much more money must have been spent on the car. The rare Buick subsequently sold privately for $36,000, a very good buy. This is illustrative of how interest in cars of that vintage is waning as hobbyists who love those cars are fewer in number.
Auctions are a great appraisal tool to establish collector-vehicle values. It shows what the buyer will sell the vehicle for, and what someone will pay for it, at that time and location. Owners can’t expect high U.S.-dollar prices when they are selling their cars in Canada, unless the vehicle is spectacular or has extremely high collectibility. It is very hard to define values by looking solely at advertised asking prices and auction results. Many desirable collector vehicles change hands by word of mouth, and never officially come on the market.
What’s hot and what’s not? Performance European cars, including vintage Mercedes-Benz and Porsche sports cars and convertible examples continue to increase in value.
“One of the hottest cars in the marketplace today is the air-cooled Porsche 911, particularly the 1997, the last air-cooled model, and the Carrera cabriolet offered through 1998,” says appraiser and master concours d’elegance judge John Carlson.
Japanese collectibles, including any Acura NSX model, along with Datsun Z sports cars of the ’70s and early ’80s, have seen prices double in the past few years. And there are others.
“If friends and family had listened to me, they would have snapped up every Acura Integra Type RS,” says Nigel Matthews of Hagerty Insurance. “That car sold new for $27,000. Today, they are commanding north of US$60,000.”
Any collectible with Carroll Shelby’s name on it is a big seller, particularly the big-block fastback and convertible models from the late 1960s.
Full classics, including Packard and Cadillac open cars, continue to be traded like rare pieces of art, and are holding or increasing their value. But restored Chevy and Ford convertibles from the 1950s and muscle cars from the 1960s, with a few exceptions, are abundant and have been overvalued in the past. The market is flat for these cars, although some very special models will always draw top money.
Project vehicles have really taken a hit. It may be a nice vehicle when restored but, if it’s a basket case, unrestored or a work-in-progress collectible, it will be very hard to sell. The cost of labour and materials are soaring and the standards for restoration have increased substantially.
Great collectible vehicles still sell, many for good money. But owners are experiencing a changing marketplace with fewer enthusiasts to buy their cars, and not as many younger people entering the hobby.