AUGUST 16 - 21 - 2016
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| Source - Pebble Beach Concours de Elegance |
It's almost time for Classic Car Aficionados from all four corners of the Globe to descend upon the great state of California to partake in a wide variety of events and auctions. If you are heading there. we offer best wishes for an incredible experience. For additional details. please visit the website.
Monterey Car Week
August 15 - 21 - 2016
We chose the above video not only because it is Classic Rock song dealing with Monterey, but also because most of the Pebble Beach Concours de Elegance organizers and likely numerous participants could have been in the audiences included in the film. They, like many of our younger followers, felt rebellious at the time, wanting to change things...and they did. Now back to the article.
Occurring during the same time period, Monterey Car Week and the Pebble Beach Concours share a great deal of connections. Numerous participants will be attending both locations for a variety of reasons. For many, the combination of auctions featuring numerous rare Classics is why they expect to be there. For a complete listing of all activities visit the Monterey Car Week website.
Lots of Auctions With Cautionary Focus From Buyers and Sellers Alike
Bidders at Mecum, Russo and Steele, Rick Cole, Bonhams, Gooding &
Company and RM Sotheby’s, will be tempted by the array of marvelous machinery. But with other hard-asset luxury markets suddenly stalling, what will the outcome be? More records? But of what kind?
We questioned why many sellers are reportedly switching to consigning their treasured cars with reserve prices as compared to the past? (Please note we did not have time to confirm this point, but will attempt to provide an update between now and the auction dates.)
The switch to reserves is something we predicted early in the year as we recorded numerous Classics selling far below what seemed appropriate. We also shared a growing number of vehicles with reserve prices that did not match the quality, condition and provenance anticipated by the bidders. The result were auction houses revising policies to better match these expectations. We also reported these changes brought renewed confidence among bidders, driving sell through rates and prices higher.
BUT, Who Am I Bidding Against?
Based on available information, there are growing, yet secretive, concerns regarding "bidding wars" which have driven prices well beyond estimates and reserves, the result of "cross-bidding" by separate individuals with common connections unknowingly bidding against each other while also competing against other bidders. While this has supposedly not yet been recorded specifically within the Collector car market, the fact that it occurred has raised a "red flag".
We believe the auction houses will undertake additional due diligence efforts in an attempt to prevent such to occur, but we also believe it may dampen spirits among bidders. It favors the highly experienced who can quickly ascertain the relationship between realizable value, estimates, reserve amounts and current bids. All we can say to prospective bidders is do your homework, get expert advice and "hang onto your hats". You may experience turbulence along the way.
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