As Andy Warhol led the 15-year rise in the Contemporary art market, so too has the Ferrari mark driven the growing value of classic cars. Next weekend is the Pebble Beach Concours d’Elegance car show. With it comes a round of auctions from Gooding and RM Sotheby’s that will include 112 Ferraris. Three of those cars could account for more than 10% of the whole weekend’s sales total, according to CNBC:
The auctions are expected to hit a sales total of $415 million this year, according to collectible-car insurance company Hagerty.
That’s below last year’s total of $428 million, but last year’s auctions got a one-time boost from the $38 million sale of a Ferrari 250 GTO, which became the most expensive car ever sold at auction.
The $415 million total would be more than 30 percent higher than the 2013 total and more than double the total of 2011. Even more staggering: There will be up to 141 cars that sell for $1 million or more, according to Hagerty. In 2010, just 36 cars sold for $1 million or more, showing just how rapidly collectible-car prices have soared.
Ferraris from the late 50s and early 60s may lead the market with estimates in the high teens and low 20m range, but Heritage says the growth in the market has now shifted to cars of a more recent vintage as Porsches and Ferraris from the 80s and 90s get more love:
There is no denying that the overall market is expanding. The Hagerty Market Rating has moved from 70.39 to 71.50 since the beginning of the year, and continues to reside in the “expanding” range of the measure. Year-to-date auction totals are 15% ahead of last year’s record figure, and the average online dealer listing price is up since January. Below the surface, though, what is driving the market has changed.
Instead of the more predictable million-dollar cars pushing growth, “modern classics” have emerged as the hottest segment of the market. Not to say that ultra-expensive models don’t continue to appreciate. Those cars that provide impeccable provenance, thorough documentation, and immediate enjoyment are inspiring bidding wars. Those cars in this price range that are wanting in some respect, though, languish.
Meanwhile, cars from the 1980s and 1990s constitute some of the biggest movers from the past 12 months, especially those models that possess rarity, performance, and a legitimate link to competition success. The consignments at the Monterey auctions reflect this shift. Compared to 2014, 75% more vehicles from the 1980s have been consigned and there are 23% more consignments from the 1990s. The number of Porsches from the 1980s has tripled. The number of Ferraris from the 1980s has doubled. It is clear the demand is there.
Fleet of Ferraris lead $415 million car auctions (CNBC)
2015 market update – classic cars (Hagerty Articles)