In defense of high auction results

[Marrs]

Here's a little feature we did that offers a flip side to the discussion about auction results and it's effect on the everyday collector, using the recent double Gullwing sale as an example.

In Defense of High Auction Results

[69coupe]

Thanks...

[JimFreeh]

I found it interesting that the article touches on the odds that you will ever get your dream car.

One car I always had a jones for was the W111 cabriolet. Specifically, a low grille, 280SE M130 version. I had a couple of windows of opportunity to get one many years ago, but passed because of other needs for the cash, or I'd have had to sell another car(s) I owned... Perhaps it's meant to be, as the dream can sometimes be quite different from the reality of owning the dream car.

I'm in a fortunate position to have multiple hobby cars, and while the sum of the value is notable, I just cannot sell all of them to buy one "dream" car. I'd rather have multiple cars vice one high dollar car. So, while I could buy the 280SE convertible, I'm not willing to sell all the other cars to do so. Reality bites, and once again I choose not to buy.

The article rings true about the probability of actually owning your dream car is near zero.

The other path to your dream car is to find it before the prices go up. While this seems trite on the surface, what I've done for example, is to move forward and buy my W111 280SE cabriolet in the next version. I decided to keep an eye out for the W124 E320 cabriolet. It took years of watching the cars, then finally a few years ago, the opportunity presented itself one morning and by that afternoon I had purchased "my" dream car. It's newer than the W111, does everything ten times better than the older car, and eventually will be considered in the same context as the W111. I've noticed it's recently been pitched as the next W111 cabriolet for investors, so the market seems to think like I do.

Same thing with the W113 pagoda. Always wanted one, could have had one a few times, but ended up with a R107 84 280SL. Kept that one for 8 years, but it never really rang my bell, and also having a 68 MGB and a 99 BMW Z3 made me decide to cut it loose last year. After all, there are only so many roadsters you need, and I much preferred the two I kept.

I'm also very blessed with a gearhead tolerant wife, who approves of my affliction, and occasionally encourages it. Linda has spent the last 22 years driving two silver W124 wagons (87 300TD, 95 E320) and steadfastly refuses to exchange it for anything else, saving me tons of cash on depreciating newer vehicles.
Jim

[Marrs]

Originally Posted by JimFreeh

One car I always had a jones for was the W111 cabriolet. Specifically, a low grille, 280SE M130 version. I had a couple of windows of opportunity to get one many years ago, but passed because of other needs for the cash, or I'd have had to sell another car(s) I owned... Perhaps it's meant to be, as the dream can sometimes be quite different from the reality of owning the dream car.

This is pretty much what I did to get my W111 coupe. I had owned and many other marques for years including Porsche, Jaguar, vintage Cadillac, and so on and had purchased a W202 Kompressor as a CPO car to try out the Mercedes brand for a change. I fell in love and knew I wanted a coupe before they got to be too expensive. I sold my other car and committed to the Coupe, but it is my daily driver. We do have a second car in the household but I get little use out of it since nobody else drives the Coupe, but they can ride in it. In my case, I have never looked back because the specialness of driving your dream car every day is unmatchable. I can say that I absolutely DO lust after other cars that I can't have at the same time, but I would trade this off down the road for or towards another dream car, like an Aston AMV8 from the 70's/80's, or similarly special.

Originally Posted by JimFreeh

The other path to your dream car is to find it before the prices go up. While this seems trite on the surface, what I've done for example, is to move forward and buy my W111 280SE cabriolet in the next version. I decided to keep an eye out for the W124 E320 cabriolet. It took years of watching the cars, then finally a few years ago, the opportunity presented itself one morning and by that afternoon I had purchased "my" dream car. It's newer than the W111, does everything ten times better than the older car, and eventually will be considered in the same context as the W111. I've noticed it's recently been pitched as the next W111 cabriolet for investors, so the market seems to think like I do.

Excellent advice and some everyone out there who missed the boat on their dream car. I have friends in the Benz club who are buying up W114 coupes as a sort of replacement for the W111 coupe, and just as you said the W124 Cab has always been regarded as something special, it never really had the same lull as most other Mercedes, and those values have helped to protect these cars as I do often see ratty sedans and even coupes but have yet to see a used and abused cabriolet.

We all have different approaches to the hobby and what will make us each happy at the end of the day, or in the morning when we first open the garage door, but you're doing it right my friend. Enjoy those cars!

[POS]

Yeah, I think we all seem to buy/sell/trade our way up the ladder. I sold a 40k-mile absolutely beautiful perfect (seriously - no flaws) w126 500SE and a documented one-of-five-ever-built 2.3-16v AMG so I could raise the cash to buy a one-owner 1969 911S Targa. That Porsche has tripled in value in the 2.5 years I've owned it. I won't sell it.

The 1966 w111 Cab came around me in 2001 and it was pretty cheap compared to the prices of today. I always wanted a 3.5 Coupe and I'm still hot after the one my father bought in 1971, but I won't sell anything to get that one. Once again, I won't sell the w111 Cab because I love driving it and it keeps going up in value anyways.

These price increases make me (a) fortunate that I got a couple of real good ones while I could, and (b) want to keep them a long time because I really like them and because there isn't much left to trade up to.

I liked the article - I regularly hear about price bubbles in the Porsche world, and I'm generally unconcerned. I own what I like and I weekly drive what I own. I also don't think there is a bubble coming - classic cars may be a little fad-ish right now, but I think there's a core underneath all of that which will keep the collector car hobby, and similarly the good cars, going for decades to come. And since you can't buy a 2014 anything and keep it forever, if you want to keep something cool around forever, it better be classic. I have two boys (ages 11 and 9) and I have two classics that will be completely unaffordable to them when they're in their 30s; I'll give them mine. Good estate planning...

[Marrs]

Originally Posted by POS

I also don't think there is a bubble coming - classic cars may be a little fad-ish right now, but I think there's a core underneath all of that which will keep the collector car hobby, and similarly the good cars, going for decades to come.

Great cars, you truly don't need anything else. I don't know the Porsche numbers but the Mercedes-Benz Classic Index (MBCI) shows Mercedes-Benz oldtimer values have gone up about 29% over the last 12-months alone and even ignoring that extraordinary statistic, they show an average growth for MBs of 9% per annum steadily for previous years.

Look at 356 values, I don't think the current 911 craze is ever going to have the bottom fall out. Fluctuations yes, but marginal ones at that.

[Tony H]

If my crystal ball was not broken I would have bought my dream car-a 300SL roadster-35 years ago when I could have afforded it but I did not know I wanted one then. Instead I bought a one owner 64 Jag XKE roadster w/black ca plates and then sold it before the prices went crazy. :-(( I have to limit my collection to one vehicle (don't even have time for the one) so I bought what I believed was a car I would never get bored with and could actually travel in and my wife would ride in it(she hated when I went through my VW bug phase) so I waited until I found a stick shift 3.5 coupe. It was quite affordable when I bought it 15 years ago but needs a bit of restoration.

[POS]

Originally Posted by Tony H

until I found a stick shift 3.5 coupe. It was quite affordable when I bought it 15 years ago but needs a bit of restoration.

I came 1 hour from pulling the trigger on a black/black one of these in 2000 or so. $8000 and in LA at the time. Still wish I had. What could be considered normal rust scared me away.