930 Turbo Carrera

Cal,

I understand your viewpoint on all.

Interestingly, we have something in common. Before the cars, I was involved in the Financial Planning Industry for 22 years. In fact, that's what afforded me my foray into the Supercars. Lets just say, I understand markets, intimately.

Markets - I share a slightly different viewpoint than yours. Here's mine: ALL markets (stocks, equities, art, cars, real estate) go up, and they go down. This is as sure as night follows day and as constant as the Northern Star. Its like the law of gravity. The only thing guaranteed is change. And yes, that includes those Blue Chip stocks of which you speak. Wait long enough and they'll com down for one reason or another. In fact, I dare-say that the classics cars of which we speak are even more volatile, because they are not a necessity and are not tied to producing assets like many stocks are.

That the current market for the cars is increasing dramatically, there is no doubt. But it does not mean this is a stable, rational, or sensible market. Anything is worth what someone will pay in that moment. But that doesn't mean that value point makes any sense. Human behavior is what governs markets, and lets just say that as illustrated by the Tulip market of lore, human behavior and judgement is not always on-point! Markets can be undervalued, realistic, over-valued or just plain crazy. There is nothing to stop anyone paying $1m for one of these cars, but that person should not expect their peers to think they have any common-sense! Let me illustrate it this way: there is nothing to stop a guy emptying his hard-earned cash out of a briefcase over the edge of the Golden Gate Bridge. But he should not expect anyone to call that behavior anything but nuts. It is what it is, and we all know that human beings have a spotty record when to comes to astute or prudent financial decisions!! The ability to be objective, dispassionate, rational and realistic makes the difference between success and complete failure, and lets face it, not many possess the aforementioned qualities.

Back to the cars. I see 2 types of buyers:
Those that do it for Love. And those that do it for Money. Of course there are those that do it for both to one extent or another. My job and this industry depends on those that do it for Love. Without them, one day these cars will actually be worthless. Food for thought.

Regarding 930s, these are basically old cars that all require lots of maintenance, engine rebuilds, restorations etc. In my opinion therefore, they are not investments at all (compared to income-producing assets), and certainly not at today's prices!

Thinking about this, if the market comes to its senses and values correct, everybody should be happy. Those that were priced out can get in. And those that already have the cars, well, they can buy even more cars!! Also, I can recommend my clients buy them again. A market correction is a win-win-win.

Best,

 

The Canepa car is not a restored car.

Here is a restored car: Cars - In Progress - 1975 Porsche 930 Turbo - Grand Prix White - CPR Classic

I was offered this restored car at $250k, and I passed. Today I'd make a case for paying that number, but bear in mind that here are probably only 3 or 4 930s restored to that standard.

Most 3.0 930s I encounter are $100k cars, and that still way up from a year or two ago.

 

In fact, we have seen MANY people figuratively emptying the proverbial briefcase full of cash, just go to any public auction and at least you'll be able to witness it for yourself! So far as they understand when you tell them they overpaid, all is good.

 

The car had a post-restoration fettling where a number of very minor details that were not strictly correct as a result of the restoration were corrected.

By virtue of today's modern restoration standards, any thoroughly restored car will be better than it ever was when it left he factory, and this is important if they are to be enjoyed properly. Even today's Porsche Ag restorations result in cars that are better than they ever were, and that's a good thing IMO.

 

Cal007,

Perhaps inadvertently, you make a wonderfully astute observation that the ultimate condition of a car "might also be differently evaluated from culture to culture"

This is so true!

I have clients in the USA, South America, Europe, Asia, the Middle East, Africa, and Australia/NZ, and I can tell you there is without a doubt a difference in what is preferred from one culture to another.

In most places, cars correctly restored to absolute original condition by renowned marque-specialists or the factory itself, are absolute top-of-the-tree. But, in Europe, you correctly observe that there is an emerging market that rewards original cars.

Having said that, I think there is some short-sightedness in this notion, as practiced by the people that have 'created' this market, because a car by nature, especially an old car, is a machine that deteriorates with use and by nature REQUIRES refurbishment & restoration. It is completely different than say a piece of Louis XIV furniture which is prized in original condition as it can function perfectly in a static setting with little more than cleaning. Although a car can be seen as automotive art, it is not art, because art is something which serves no other purpose than the aesthetic one. Thus I think the rewarding of top dollar for normal road-going series cars in unrestored condition (such as the 930) is misplaced. Of course, a different perspective can be taken with vastly important very rare car, say a famed Le Mans winner, or a one-of-two factory Prototype etc. But not a production car. All IMVHO, of course.

As if to underscore the point, on the funny side, I recently offered a world-renowned collector an original car. He returned the communication with: "Joe, you've seen my collection, and, as you should know by now, I am just not a caretaker of Patina and Cracked Leather". He went on to elaborate that he started out collecting original cars, but after much road-side repairs and an increasingly frustrated wife, he decided to devote himself to old cars that were actually reliable and worked well. This lead him to the world of fully-restored cars by marque-specialists or by their respective factories. Whilst there is a preservation class at Pebble Beach and those cars are no doubt quite valuable, I can tell you the the best restored cars are very valuable to many collectors also. They look at them as cars that have now been properly preserved for future generations using methods & materials that were just not available 40 years ago. That to them is important in an automobile designed for road use.

Porsche Ag itself seems to have taken the same point-of-view as the one I describe above, because, as you can see, they believe in a full restoration to return the car to its former glory and more. Their POV clearly adheres to the basic premise of restoration which is: "a return of something to a former, original, normal, or unimpaired condition."

Assembly and Finish - Revive the Passion - Porsche 911 Factory Restoration - References - Dr. Ing. h.c. F. Porsche AG

Delivery to the winner - Revive the Passion - Porsche 911 Factory Restoration - References - Dr. Ing. h.c. F. Porsche AG

At the end of the day, for the people who buy these cars for love, it is a hobby, therefore they have only themselves to make happy. When it comes to the marketplace and the thoughts specialists like myself, there is more of a responsibility to take a viewpoint that is rational and based on economic reality. Ergo my recent stance (which in fact has been developing for a while) that the cars are currently vastly overpriced, and this includes both original & restored cars.

Best,

 

Great perspective!

 

Fair comments noted, and I agree.

However, as steveintoronto pointed out, the 930 has (unfortunately) become all about sales numbers because of the crazed market, so perhaps one can be forgiven for discussing that subject! When prices are more sane, the focus is on the history, design, maintenance etc of these cool cars. In crazed markets, discussions on the market tend to dominate or at least become more prominent. So far as its civil & objective, I think its okay. I'm still formulating a seperate market commentary idea, and will likely do this for my clients.