Classics Vs. Muscle Cars
August 1, 2005
Nick Soprano deals in restoring and maintaining classic and competition sports
cars. Like Hyman, he does not deal in muscle cars, but he offers a different
opinion about why people buy them.
“In general, the muscle car buyer grew up in a V-8 neighborhood,” he states.
“He’s not savvy to Mercedes-Benz SLs or Ferraris. He’s looking for a car that
generated desirability to him when he was growing up. It’s a
nostalgia-driven purchase, a reminder of drive-in movies, the Beach Boys, and
going to the malt shop. The Ferrari buyer is also nostalgia driven, but he also
has a desire to experience the racing history and the V-12 pedigree.”
Alcazar of Russo and Steele believes that the majority of the country has been
exposed to muscle cars more than exotic sports cars. That is why he says: “The
market today is geeked up on muscle cars. Every evolution of car collecting is a
reflection of the collectors’ youth.”; function voidFunc() { } voidFunc();)
Bidding heats up as a 1963 Shelby Cobra factory racer tops the
$2 million mark at Russo and Steele’s 2005 Monterey, Calif. auction. (Click
image to enlarge)
For that reason he believes that well-documented examples of desirable muscle
cars, such as the 1971 Hemi ’Cuda convertible, are genuine collectible cars.
“It’s already established as the Duesenberg of the future,” he says, “because
people are ready, willing, and able to pay that kind of money, so that’s what
it’s worth.” He cautions that rarity alone does not always equal desirability
and that a “rising tide does not raise all ships.” Alcazar also believes that as
today’s muscle car collectors become savvy and evolve as collectors, they will
graduate to appreciate European sports cars.
The experts do agree on certain things: One is that the car collecting market
always attracts a lot of money and investors during periods when traditional
investment options such as stocks, interest-bearing instruments, and real estate
offer low returns or questionable value. They also agree that a market
correction is coming that will adversely affect the value of cars that lack or
have poorly documented histories. The same applies to clones, re-creations,
and reproductions. Alcazar cites as an example the Shelby G.T. 500E convertible
that fetched $550,800 last April despite being a “1968” model built in 2004.; function voidFunc() { } voidFunc();)
Gone in a puff of smoke: A rare Ferrari leaves the premises of Motor
Classic and Competition, specialists in European exotics. (Click image to
enlarge)
All agree that educating oneself is also a key to enjoying the car-collecting
hobby. Both Alcazar and Hyman adamantly stress the buyer’s responsibility to
know and understand what he or she is bidding on or buying. Due diligence is
crucial, especially in a market that is constantly changing and one in which
even the experts are astounded at some of the selling prices. Part of the
problem is that in a “no reserve” auction many sellers are forced to
clandestinely buy back their own cars to avoid a potential loss.
“I used to be able to predict within $500 of what a car would bring,” Alcazar
says. “That’s very hard to do today. Now it’s like that old hockey saying: Skate
with your eyes up.”
Experts agree that, first and foremost, collectors should buy what they like;
cars should be purchased for enjoyment, not for speculative or even investment
purposes. Despite the large amount of money that can change hands, car
collecting is still a hobby. As Nick Soprano advises: “Trust your heart. Buy it
because you love it. A car’s value is ultimately what it means to you.”
CONTACT LIST:
Hyman Ltd. Classic Cars, 314.524.6000, www.hymanltd.com
Motor Classic and Competition Corp, 914.997.9133, www.motorclassiccorp.com
Restorations by Julius, 818.882.2825, www.rbyj.com
Russo and Steele Collector Automobiles, 602.252.2697, www.russoandsteele.com
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