
"Low interest rates and a booming real estate market have
been putting extra money in the pockets of many would-be
collectors. One would be amazed to learn how many of the $100K - $500K
vintage Ferraris that have changed hands over the past few years
were paid for with real estate money."
Over the past decade and a
half, much has been written about the booming speculators’ market
that gained momentum through the late1980s and reached full bloom
in the early ‘90s before caving in entirely. You’ve heard it many
times: Lessons were learned, fortunes made and lost.
In the wake of the big crash, we watched prices reach bottom,
stabilize and slowly begin creeping upward again. It was
interesting to note how the hierarchy among various models
rearranged itself as some were quicker to recover than others.
Surprisingly, the 250 GT/L “Lusso,” which seemed to have been
widely accepted (in print, anyway) as the “most beautiful
production Ferrari ever built,” was especially slow to recover
and, for many years, appeared trapped at the just-over-$100K mark
along with the much more plentiful (and arguably less beautiful)
365 GTB/4 “Daytona.” With so many market experts quick to point
out how undervalued this car was, it should have been no surprise
when, only a few years ago, Lusso values finally took off, rapidly
making up for lost time.
Soon after, models immediately above and below the Lusso in terms
of market value began their quick ascent as well. The 330 GTC
became the new just-over-$100K two seater with the 250 GT PF Coupe
following close behind. As 2005 rolled around, we saw nice 330
GTCs being offered for close to $200K and Lussos with asking
prices of well over $300K, nearly twice what these two models were
bringing only a few years before. Things had definitely begun to
change.
The
change was also evident immediately up-market from the Lusso, with
open-top cars (275 GTS, 250 PF Cabriolet SII and 330 GTS) fetching
prices that hadn’t been seen since the late ‘80s boom and 275 GTBs
and GTB/4s becoming the new “Lusso” in terms of sudden market
enthusiasm. With 275 berlinetta values crowding in on what had
traditionally been much more desirable models, it seemed entirely
possible that the domino effect might be about to set off a new
market rush. On the other hand, some warned, we might actually be
facing another market bubble.
So what happened to all of that excitement in the marketplace?
Have the dominoes stopped falling? With the rapid doubling in
value of Lussos and 275 Berlinettas, isn’t it only a matter of
time before the million-dollar cars experience the same increase?
For answers to these questions, let’s examine the events of the
past few months as well and take a more in-depth look at what
has actually been driving the market up to this point.
In March, Sotheby’s (well-known auctioneers of art and
antiquities) announced their upcoming sale of significant Ferraris
to be held at the Fiorano circuit in Maranello, Italy. The event
would be held with the blessing of Ferrari SpA and would offer an
impressive lineup of cars from the manufacturer’s past and
present. In fact, thirteen of the twenty nine Ferraris being
offered had presale estimates in excess of $1 million. If any
single event was going to set the pace for the future of the
collectible Ferrari market, surely this was the one. Or not.
For reasons I won’t go into here (see Marcel Massini’s excellent
coverage of the sale
here), the Sotheby’s at Ferrari sale was an
undeniable disaster. Only ten of the twenty nine Ferraris were
sold, with only a single vintage Ferrari breaking the $1 million
mark. Immediately afterward, there was no shortage of excuses for
the disappointing results and the general consensus among market
watchers was that the Sotheby’s sale was handled so poorly that
its resultant failure was in no way a reflection of the current
market status. Even so, could it have an effect? After all,
Monterey was less than two months away.

With no less than five automobile auctions held over a four day
period, what has come to be known as “Monterey Car Weekend,” can
usually be counted on as a healthy indicator of the state of the
vintage Ferrari market in the US. Kicking off the bidding
festivities for the weekend was Christie’s auction of Exceptional
Motorcars held at the Monterey Jet Center on Thursday, August 18.
Despite quite a bit of hype, of the five vintage Ferraris offered,
three failed to meet reserve and the other two sold for prices
that were market correct yet unremarkable. Even the highly
publicized 250 GT SWB “Breadvan” (s/n 2819 GT) failed to draw any
serious interest. It was beginning to look as though the Sotheby’s
fiasco might have helped douse the flames that had been building
earlier in the year.
Fortunately, RM’s two-evening event held on Friday and Saturday
proved that the disaster in Maranello was less of a factor than
many had anticipated. RM set an all-time gross sales record for
Monterey weekend while managing to move just about every car that
crossed the block. Out of the twelve Ferraris offered, only two
failed to change hands (375 MM s/n 0366 AM and 206 SP s/n 008) and
the other ten brought respectable, even if unremarkable prices.
The hefty closing bid for 365 GTB/4 s/n 16997, in excess of $200K,
might have seemed to be a surprisingly remarkable result but, the
fact is that it was a nicely restored example with enough
post-restoration miles to prove it was also well-sorted and most
likely worth every penny. With the high number of cars sold, yet
at figures that were consistent with current market values, the
folks at RM had proven their ability to bring buyers and sellers
together on the same plane.
Held on Sunday in Pebble Beach, David Gooding’s auction offered
six vintage Ferraris, four of which had presale estimates of seven
figures. Gooding managed to close three of the six, including one
of two star attractions, the 275 GTS/4 NART s/n 09437, which
landed $3,960,000 including buyer’s premium. Disappointing,
though, was the lack of interest in Jon Shirley’s awesome 375 MM
Berlinetta s/n 0322 AM. Having already undergone a top-notch
restoration before making the concours rounds and taking home the
trophy at Pebble Beach last year, prospective owners might have
considered there to be little fun left to be had with the car.
The healthy, yet less-than-shocking auction results from Monterey
weekend indicate that not much has changed since January. While
the demand for production cars continues to grow, it has had
little or no effect on the multi-million dollar coachbuilt and
competition models. The dominoes have stopped short of the
big-money cars. Looking back at where we’ve come from and what has
actually brought us to this point, it becomes clear that there are
two reasons for the divide in market activity.

As the dust settled following the market crash in the early ‘90s,
the first cars to make a comeback were the top-tier models,
primarily competition cars and coachbuilt cars of distinction,
while the more plentiful production models were slow to rebound
and have only been coming up strong over the past few years. While
values of the most desirable models have already reached full
recovery and are now slowly appreciating along with everything
else that is rare and collectible, the lower-tier cars are just
now catching up. This accordion effect is one contributing factor
to the recent increase in value of more available models like the
Lusso, 275s and GTCs while cars that changed hands for $5 million
to $6 million a few years ago fail to bring substantially more
than that today.
Even more influential than this, however, is the fact that low
interest rates and a booming real estate market have had an
enormous effect on this country’s middle and upper middle classes,
putting extra money in the pockets of many would-be collectors. I
think one would be amazed to learn how many $100K - $500K vintage
Ferraris that have changed hands over the past few years were paid
for with real estate money. The sudden widespread ability to sell
or refinance property and pull out large amounts of cash has had a
profound effect on the vintage Ferrari market (and the collector
car market as a whole) and will probably continue to be a factor
as we watch interest rates rise and the housing market cool and
stabilize. While collectors of seven-figure automobiles have
certainly profited from the real estate boom right along with the
rest of us, it has most likely not been a deciding factor in their
ability to buy cars.
VINTAGE
FERRARIS AT AUCTION IN MONTEREY, AUGUST, 2005
Christies Monterey, August
18, 2005
LOT # |
YEAR |
MODEL |
CHASSIS # |
HIGH BID |
SOLD? |
52 |
1961 |
250 GT SWB
"BREADVAN" |
2819 GT |
$895,000 |
NO |
55 |
1964 |
250 GT/L
BERLINETTA LUSSO |
5679 GT |
? |
NO |
66 |
1954 |
250 EUROPA
PF |
0351 EU |
? |
NO |
67 |
1965 |
1512
MONOPOSTO |
0008 |
$1,115,000 |
YES |
72 |
1960 |
250 GT PF
CABRIOLET "NEMBO SPYDER" |
1777 GT |
$895,000 |
YES |
RM Monterey Sports
& Classic Cars, August 19-20, 2005
LOT # |
YEAR |
MODEL |
CHASSIS # |
HIGH BID |
SOLD? |
224 |
1959 |
250 GT LWB
SPYDER CALIFORNIA |
1217 GT |
$1,320,000 |
YES |
228 |
1974 |
365 GTB/4
DAYTONA COUPE |
16997 |
$204,600 |
YES |
232 |
1959 |
250 GT LWB
"TOUR DE FRANCE" |
1161 GT |
$1,457,500 |
YES |
250 |
1973 |
365 GTC/4 |
15779 |
$82,500 |
YES |
257 |
1953 |
375 MILLE
MIGLIA SCAGLIETTI SPYDER |
0366 AM |
$2,225,000 |
NO |
260 |
1973 |
DINO 246
GT |
04946 |
$90,000 |
YES |
261 |
1966 |
DINO 206
SP |
008 |
$2,000,000 |
NO |
263 |
1963 |
250 GT/L
BERLINETTA LUSSO "MEADE SPECIALE" |
4587 GT |
$313,500 |
YES |
264 |
1970 |
512 S |
1006 |
$1,947,000 |
YES |
270 |
1965 |
275 GTS |
7409 |
$253,000 |
YES |
273 |
1951 |
340
AMERICA BERLINETTA |
0126 A |
$973,500 |
YES |
Russo & Steele
Monterey, August 20, 2005
LOT # |
YEAR |
MODEL |
CHASSIS # |
SOLD PRICE |
S128 |
1964 |
330 GT 2+2 |
6363 |
$60,500 |
S143 |
1967 |
330 GTC |
9821 |
$137,500 |
S153 |
1967 |
330 GTS |
9481 |
$330,000 |
S170 |
1970 |
365 GT 2+2 |
12539 |
$91,300 |
Gooding Pebble Beach, August 21, 2005
LOT # |
YEAR |
MODEL |
CHASSIS # |
HIGH BID |
SOLD? |
31 |
1950 |
166/195
TOURING BERLINETTA |
0060 M |
? |
NO |
37 |
1967 |
275 GTS/4
SPYDER NART |
09437 |
$3,960,000 |
YES |
51 |
1953 |
340/375
MILLE MIGLIA PF BERLINETTA |
0322 AM |
? |
NO |
59 |
1969 |
F1 GRAND
PRIX MONOPOSTO |
017 |
$1,320,000 |
YES |
61 |
1954 |
250 EUROPA
PF |
0341 EU |
? |
NO |
64A |
1973 |
365 GTS/4
DAYTONA SPYDER |
16455 |
$495,000 |
YES |
|