01-22-08: The Barrett-Jackson Collector Car Auction is indeed the greatest one in the world as it is so billed. It has virtually everything for everyone who’s into cars. It’s like spending a week at Disney World. We have fully documented the many facets of this year’s event once again here at TMN, check it out.
Each year is different in its own way and 2008 was no exception. The one term summary of this year’s event is “lower sale prices”. Car after car, day after day saw notably lower gavel prices and lack of extravagance on the part of bidders. The total take for this year's show was reported by Barrett-Jackston to be $88,000,000, far lower than 2007’s heady $112,000,000. Craig Jackson kept up an optimistic spin in TV interviews against the backdrop of a shaky economy, much like a trailing political candidate does when asked about his chances of winning.
In the early days of the event where cheaper cars are typically sold, prices seemed to hold pretty strong compared to years past. Solid cars with documents and originality continued to get strong money. But the re-creations, made for auction show cars, and over-hyped ones didn’t. As “big money Saturday” opened up, hopes were high for some exciting crowd wowing sales to rock the tent like last year when the $5,000,000 Shelby Cobra Super Snake raised the roof. But that moment never came.
Throughout Saturday night the auctioneers struggled and begged for the money while bidders for the most part refrained from the drunken spending binges of years past. Several times during the night, cars that should have set records got deadlocked and refused to escalate. Bejeweled wives hanging on bidders’ arms were visibly seen intervening.. “No more”, they said making the cut off gesture at their necks. Several times Craig Jackson and auctioneers appealed to the crowd saying almost angrily, “Come on, this is way under the money! This car should be selling for twice that!” They broke stride on many cars stopping the bid process to up-sell the crowd on cars that should not have needed it. It was almost bordering on desperation at times.
Even cars easily expected to draw big time bidding wars like the ‘69 Shelby GT-500 that was Carroll’s personal family car, took a lot of work to get people excited. While the sale price of $675,000 was lofty, Carroll was visibly disappointed as it was thought by most the car would fetch well over $1,000,000. This is not to say all was gaunt. There were some big sales such as the first 2009 Chevrolet Corvette ZR-1 which got a healthy $1,000,000. But even that sale took a lengthy monologue pitch by Jay Leno, a well known Barrett-Jackson staffer offering his trademark pony tail to be cut off, and a few last minute giveaways to reach.
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There was also a notable flat spot for the cavalcade of charity cars that rolled across the block. In these sales, the amount of money over and above the actual cost of the car goes straight to a given charity. Barrett-Jackson also waives all commissions. The 2008 Shelby GT-500 KR #1 did reasonably well at $550,000, as did the aforementioned Corvette ZR-1 at $1,000,000. John Schneider from “Dukes Of Hazard” fame stood on his General Lee replica and sang to the crowd to get his car moving up the scale. The car itself was not all that special, a replica that he owned. Giving only a small portion of the proceeds of his sale to charity, he had to interrupt several times during the sale to get people bidding.
Some charity cars struggled to get the attention of bidders at all, forcing the Barrett-Jackson crew to make kids in wheelchairs beg the crowd to care or drag more celebrities on stage to throw in perks or autograph the cars during the bidding. It was bordering on embarrassing. A note to Barrett-Jackson: The charity auctions are a great thing, but you edged the saturation point this year.
It’s a bummer to admit, but this year’s event was unquestionably a reflection of changing economic times. With the mortgage crisis, record home foreclosures, layoffs across the board, and the nation-wide glut in the real estate market the amount of “dirty sexy money” for elective luxuries like collector cars is shrinking.
Many of the chieftains who buy these cars have big businesses that launched them to wealth, businesses that are not so fat this year. Even our hometown Arizona collector Ron Pratte who is a major figure in the near devastated housing industry in the Southwest, was more frugal in his buying this year. He was choosing his targets selectively and bidding with a more focused eye. Bidders by in large were looking for deals this year, not to be the winner at all costs.
The economic landscape was also reflected in the general atmosphere. Spectators were far less exuberant, less enthusiastic, and a lot quieter. Given a higher percentage of the attendees are likely themselves facing some rocky economic times, they are less likely to cheer and whistle while others extravagantly spend play money on high priced toys. Bidders were also notably more regimented this year, exuding far less outward showmanship than we have come to expect. There was no dancing on the stage or chest beating competitive volleys that made previous events a spectator sport. The atmosphere was shall we say, sober.
Don’t get me wrong, I have never been one to let business get in the way of enjoying a good show. This event was just as entertaining this year as it always has been. There were over a thousand of the best and most interesting cars you can find anywhere to drool over all in one place. You also get the chance to see and talk to all the companies that build and restore the cars, chat with the sellers and bidders alike. You get an insight on the underbelly of our hobby here that you don’t get anywhere else.
Ford put on one heck of a show with their pavilion and exhibitions, gave away some good free crap to the crowds, and showed off some great cars to dream about. Where else can you (not just the media) go and get the chance to talk with Ford’s top marketing and product brass or watch them play ringleader in the side shows? Anyone who thinks the top decision makers at Ford live in their cushy offices of the glass house in Dearborn and have become disconnected from real customers, didn’t know who they were actually talking to at the Ford Booth.
All in, it was a buyer’s market for 2008. It would not surprise me to see many of this year’s cars back on the block when the economy turns around because profits will be made. By that time, our modern muscle car era will have climaxed and be on its way into the history books. These cars will be worth even more all over again.
