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by Barry Kluczyk photos by the author
It takes only a couple of minutes, but in that time a valuable collector car’s worth will be summed up by a room
full of knowledgeable enthusiasts. With luck, the car will change hands at the end of its moment in the spotlight,
pushed away by the next Corvette or muscle car to cross the block.
That’s the summation of a collector car auction’s proceedings, but it’s hardly the sum of all that goes on during
the sale. The auction is more than the collective sale of dozens or hundreds of cars, it’s a microcosm of capitalism
and a window into the world of automotive obsession.
Collector and antique auto auctions have been around for decades, but they’ve become much more popular
in recent years. This is due in no small part to the broadcast of the annual Barrett-Jackson sale in Scottsdale,
Ariz. Other auction companies, such as Mecum, RM Auctions and Kruse, have enjoyed sales growth in the past
decade, as the interest and corresponding value in classic American muscle cars has mushroomed.
You can thank the baby boomers for much of the frenzy, as their disposable incomes later in life fueled restoration
and acquisition booms that made the muscle car price run-ups of the late 1980s seem like chump change.
The recent turmoil in the global economy has put a damper on both prices and the number of cars being sold at
auction, but they remain popular venues for enthusiasts to buy and sell— or simply gauge current market conditions.
And if you have the means and desire, the time may be right to take advantage of, ahem, “price corrections” and pick
up the car of your high-school dreams for a relative bargain.
insiDe the auCtion tent
If your only perspective of collector car auctions comes
from watching millionaires out-ego each other on TV
while bidding up one-of-a-kind hemi ’Cudas and ZL-1
Camaros, don’t worry—reality is much less expensive.
In most cases, cars sell at or near the market value.
In other words, auctions are not the domain of wealthy
collectors, brokers and the like. There are dozens of
collector car auctions held around the country every
year that offer a diverse mix of vehicles that real people
can afford. Of course, that doesn’t mean you’ll score a
rare 1969 Trans Am convertible for pennies on the dollar,
but if you’re simply looking for a clean classic car that
won’t break your budget, you’ll have plenty of choices.
The prospect of buying a car at an auction is intimidating
to those who’ve never participated, but after you’ve
learned the ropes, you’ll likely find it’s a straightforward
process and exciting experience.
One of the best ways to overcome auction trepidation is
attending one strictly as an observer. You don’t have to be
a registered bidder to attend a collector car auction, so go
as a spectator to learn the basic layout and operation of
the sale — and ask questions of the auction staff.
Besides learning the ins and outs of the auction process,
a collector car auction makes for a fun outing for anyone
who appreciates classic cars. Often, the sales attract the
very best examples of the rarest and most interesting
cars, making it a great de facto car show.
if you Plan to buy
If you’ve decided to attend an auction to bid on a car
and it’s your first time, plan to register with the auction
company at least a week or two before the sale. The
auction company will typically require a letter of guaranty
from your bank that you’ve got the funds to follow
through on a sale. In some cases, a bid limit may be
instituted. It’s an insurance measure that enables you to,
say, bid up a nice, 327-powered ’69 Camaro, but not the
million-dollar hemi cars.
Once your paperwork is set, you’ll be assigned a
bidder’s number. When your dream car hits the stage,
you can indicate your bid to the auctioneer with a
raise of a hand, a shout or both. Typically, a bidder’s
assistant will quickly appear at your side, helping to
keep the auctioneer’s attention.
Keep in mind that if your bid is accepted as the highest
at the auction’s close, you bought the car. There’s no
thinking it over or talking to the seller at that point. It’s
your car; and generally, the auction company will want
payment arrangements to be made that day.
In the fine print of your registration, you’ll also see a note
about the buyer’s premium. That’s a euphemism for sales
commission and that’s how the auction company makes
its money. Expect the premium to be anywhere from 5 to
10 percent more than the final, “hammer” price of the car.
Do your homework
Before sticking your hand in the air on that initial bid,
make sure you know as much as possible about the
car, its history and the general market price for it.
When it comes to the car, it means, for example, knowing
that the ’68 gTO was only offered with a 400-cubic-inch
engine, so a car in the auction with a 455 engine is
incorrect. Also, the car’s value is directly related to
whether the engine is original to the car. A seller with
nothing to hide will have paperwork available for
inspection that specifies whether the drivetrain is
original. A car with a non-original engine shouldn’t be
avoided, but it won’t be worth top dollar.
Inspecting the car also means checking for signs of
body repair, rust and less-than-thorough restoration
techniques. There are many online resources for popular
models, so finding the common problem areas on most
cars is relatively easy.
One of the drawbacks with the auction is it’s impossible to
test-drive the car, so you’re gambling that it’s in good running
condition. If the seller is available, ask pointed questions,
such as: Does it overheat or is the rear axle noisy?
what’s it worth?
Knowing what to bid on a car can be difficult. If you’re
unsure where to start, let another bidder make the initial
offer and proceed from there. It’s important to keep your
emotions and ego in check, as the prospect of buying a
car at a fair, market-correct price can evaporate during a
heated exchange of bids. Decide on your maximum price
prior to raising your hand for the first time and stick to it.
Also, keep in mind that not all models of a car line are
worth their weight in gold. A 1969 Mustang Boss 429
is worth hundreds of thousands of dollars, but a 1969
Mustang grande with a garden-variety 302 engine is not.
Somewhere in the middle is the classic car that suits you,
offering enjoyment on summer cruise nights and, with
luck, a return on your investment after a few years.
All it takes is a little research and a well-timed raise of
your hand when the auctioneer calls for bids. n
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