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Brock Yates on Barrett-Jackson

Discussion in 'Ferrari Discussion (not model specific)' started by Texas Forever, Jan 29, 2004.

  1. Texas Forever

    Texas Forever Four Time F1 World Champ
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    Apr 28, 2003
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    Texas!
    I trust that this is on topic --

    According to a short article in today's WSJ, noted commentator Brock Yates (who is also known as one of the biggest advocates of following and obeying all speed laws and regulations, at all times) said that over $50M worth of cars were sold in Scottsdale last week. B-J was the biggest where 71 cars were sold for over $100,000:

    Craig Jackson said:

    Mr. Yates closed by saying:

    Your thoughts. Do you (A) think that comments like these are a sure sign of a bubble, or (B) do you think that we might be entering another wave of inflation due to the "Guns and Butter" budget of the present administration and, thus, buying Mustang Sally may be a better investment than the S&P 500?

    Dr "Investment Guru" Tax

    BTW, how dare Mr. Yates say that cars are more fun than money. Did he really say that! (Fade out of DrTax heading down to his cellar to play with his money.)
     
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  3. Kds

    Kds F1 World Champ

    I think the latest "car bubble" (that will end up as a term for some safety device in the future probably) ended about 12-18 months ago if prices and sales volumes on new and high end cars are to be used as an indicator.

    Having said that, there's no doubt that using the auctions as a guideline can be valuable as well......because what do you get for $30-40-50K nowadays from a dealership ???

    You might as well buy something cool at auction that you can have fun with. Something that they don't make anymore which is different and unique....that is what I think collecting is all about.

    I don't think it's a "car bubble" if this BJ auction is the sole standard.....I think it's merely a capital shift to a different stock sector by people looking for less downside with their fun. A lot of the cars sold there were even cheaper than I though they should have gone for as well. I was surprised by the apparent lack of F-cars and other ultra high end stuff more than anything.

    Now....I gotta get me a yellow jacket for the showroom floor just like that guy who paid $100K+ for a 1969 Z-28........
     
  4. ryalex

    ryalex Two Time F1 World Champ
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    Uh, I apologize if you're an F-chatter, Yellow Jacket Dude, but that guy was WACKY. I think they mentioned "pro wrestler" somewhere in there. I'm surprised he didn't buy the Countach too :D ! He had something to prove... pissed off for being fired by a Chevy dealership??

    I was impressed by the Calloway collector - he wasn't $crewing around! Actually that was the first time I'd seen that dark blue '97 Calloway (C2?)... I thought it was beautiful and well worth the what, $80-something-k he paid for it.
     
  5. flashman

    flashman Formula Junior
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    It will be very interesting to see how things fare at the Kruse auction here this week. If it is like last years, the same cars will be on the block again. I personally feel that the so called bubble, will burst as soon as we all start to realize that the collector car market is being manipulated by these so called experts. My 2 cents.
     
  6. Napolis

    Napolis Three Time F1 World Champ
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    Jim Glickenhaus
    IMHO cars at this level are not an investement. Buying TXN at 14 about 12 months ago was an investement. Buying the Euro/$ 12 months ago was an investement.
    One of the largest European car auctions houses Coy's is on the verge of bankruptcy.
    Buying a 200K Camaro today is unlikely to return the same ROI, as TXN or a leverged Euro/$ bet did over the last 12 months,in the next 12 months and there are stocks that will. Picking them, that's another matter...
     
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  8. Texas Forever

    Texas Forever Four Time F1 World Champ
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    Yes, indeedy, that's what makes a market place work.

    Getting back to B-J, Craig Jackson predicted this year's results when I was there last year. Now Craig is more of a showman than an investment counselor and, indeed, he puts on a good show. Thus, I wouldn't put it past him to pull this off for at least one more year or two.

    Just imagine what B-J 2005 is going to be like! Folks are going to have rockets in their pockets that they just can't wait to launch. I might go just to watch. Or if I put together an Enzo Cadillac (1968 to 1970 red drop top with a wing on the back, longhorn on the hood, a beautitican at the wheel, and a blues man in the back) maybe I'll take it there to sell as a charity thing.

    Personally, I'm glad that I don't have to make money off my cars for a living. That's a tough bidness. I just try and keep the carry down to a reasonable level because we are all tenants on this planet. One way or the other, we all pay rent.

    Napolis, weren't you the one who gave up the $2 to $3 a mile rule? That's what I'm using as my guideline. If I put 20,000 miles on my Maranello and, door to door, it ends up costing me $40,000 for that ride, I figure that I will have done well.

    Take Care, Dr "Dreaming of Road Trips Instead of Working" Tax
     
  9. 007

    007 Guest

    Feb 18, 2003
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    Brad
    Two guys with beards and one guy named Beard told me this would be a great investment since I'm bad and nationwide. Besides I have extra garage space in La Grange. The Tres Hombres have never steered me wrong yet. :)
     
  10. Napolis

    Napolis Three Time F1 World Champ
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    Dr.
    That was me and your 40K is a very good investment.
    Best
     
  11. Steve Darrah

    Steve Darrah Rookie

    Nov 5, 2003
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    Dr. Tax,
    Having read some of your previous posts,you seem to have a degree of "financial acumen." Buying cars for investment has been,is,and will be simply speculative. I believe you could obtain a better return on your $ trying to time the various markets as you would achieve buying and selling cars. Take a look at the longer term{~10 years or more} returns of stocks vs. any collectible-cars,stamps,baseball cards etc.If investing is an objective, stick with the stocks.
     
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  13. Texas Forever

    Texas Forever Four Time F1 World Champ
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    I agree totally. Convincing yourself that the lastest gleam in your eye will be good investment is just more proof that Crack is Whack. You buy a Ferrari because you can and you want to. I guess that it is okay to lie to youself, just so long as you don't believe it.

    Take Care, DrTax
     
  14. henryr

    henryr F1 World Champ
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    it's a great investment......

    for barret-jackson, getting both a buyers & sellers fee.
     
  15. BigTex

    BigTex Seven Time F1 World Champ
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    Bubba
    Well, I have both a Ferrari and stock investments (401K).

    Someone could always steal your car, and so I think the stock is......
    wait! .... Enron.... Worldcom....... insider hedge funds.........damn, I guess that wasn't so safe after all.

    $100K went to $25K faster than new car depreciation!

    Older Ferraris have acheived the flat part of ther depreciation curve, but unless your going shopping with Jim Spiro, I don't think you'll see increase in value comparable to stocks. A 308GTB will always be a 308GTB.

    My personal answer is to keep plowing money into today's stock market, and buy ANOTHER Ferrari. And maybe a garage.

    The "American Iron vs. Sports cars" is a public sentiment issue, most likely driven by the age demographic of who is spending the money.

    I'd have a hard time with that, based solely on the fact that it's a whole lot easier to build a Camaro SS convertible, than it is to fabricate a genuine 275GTB/4.
     
  16. malcolmb

    malcolmb Formula Junior
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    Dale, I think the $2.00 to $3.00 per mile is operating cost, my experience has been that the cost of ownership is about $4.00 to $5.00 per mile. Still, your premise is correct, buy to enjoy because you can, dont get confused about "investing".
     
  17. Eilig

    Eilig F1 Rookie
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    I think if any of you were at the BJ auction to witness this thing first hand, you'd quickly understand what's going on down there.

    The hype associated with buying a car in front of a national audience via Speedvision broadcast drives people to pay insanely high prices. After all, who wants to LOSE in their bidding process in front of an audience of millions.

    Still not convinced? Then observe what happens down there the moment the cameras turn off. The frenzy calms to a "normal" pace, bidding is far less spirited, and some people even get up and leave.

    This auction was a far different event prior to Speedvision moving in with their cameras. I've been attending this event since 1984. This was the first year I didn't go in 20 years. Why? Because the nature of the event is totally changed.

    Put Speedvision cameras at any other auction in the US, and that auction too will change, and prices will drive sky high.

    IMO, Cavallino is a far more enjoyable event than BJ.
     
  18. Napolis

    Napolis Three Time F1 World Champ
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    I came up with that # based on my TR which I bought new and drove 115K miles. I think you're right if you drive a bit less. Either way it's more than many realize.
    Best
     
  19. Eilig

    Eilig F1 Rookie
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    RIGHT! They literally get you COMING and GOING!
     
  20. ryalex

    ryalex Two Time F1 World Champ
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    I thought the same thing... I have more respect for the guys who stopped though. Some just had super-egos like Ex-Chevy Yellow Jacket Guy.

    One thing I noticed was the hassling from the B-J bidding people. Getting up in their faces and convincing them to bid higher. Even had the good looking girls -well, at least the one they kept showing on TV- doing the same and I noticed she was overly touchy-feely holding the arms and shoulders of EVERY bidder (and some hugs).

    "Be gone, temptress! Ye siren of the auto auction!"

    What's next, having them form a corporate deal with Hooters to have their waitresses be the ring people?
     
  21. Kds

    Kds F1 World Champ

    Ryan...

    You picked up on her too eh.....the whole touchy feely bit was pretty obvious. I liked her look too....the glasses and hair worked well on her.....sort of the "accountant temptress" look.
     
  22. tjacoby

    tjacoby F1 Rookie

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    tj
    I liked Karen McDougal, the playboy playmate - anyone do the eye-candy math to see if they do up the price over expected? although I know she's out of my price range (what's the cost of a divorce, her care and feeding....).

    I agree though - more show than go, with a lot more screaming and antics to up the bids. Looks to me like he's only concerned with his own pocket and not at all with repeat business. Fun to watch though.
     
  23. Tom Larkins

    Tom Larkins Formula Junior

    Brock Yates has served us well for the most part, but he and some of the other crew got a fair share of emails in regards to comments. They said "death threats" tounge-n-check of course on air. Why, b/c more serious collectors & knowing folks were listening to his comments. While Mr. Yates has much knowledge about some muscle era stuff & Allan D. knows about the euro stuff, they stepped on a few toes IMO and I wouldn't expect anything less than those comments from both. Its good business for Speed TV & B-J, however in the end some of those folks will get the shaft for paying that kind of $'s.
     
  24. lotustt

    lotustt Formula 3

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    I just read that they made over 38 million in car sales. Last years total was around 28 mil. And yes B-J definitley gets you coming and going with the fee's. Not to mention that a claimed 180,000 people attended the event over 4 days. Now at 20 dollars a head to get in thats a lot of mula alone not even counting the auction fee's. This guy is doing some good marketing thats for sure.
     
  25. Jet911M3

    Jet911M3 Rookie

    Oct 31, 2003
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    Don
    Let's see...Scottsdale in January, week before FBR Open (formerly Phoenix Open) which is well regarded as the most fun and best girl-watching event on the tour. Great press from auto mags, great B-J advertising, major past successes, unparalleled hype. Yes, he got a good thing going!
     

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