AUCTION ORGY – SCOTTSDALE/PHOENIX 2008
By—Les Neidell
Out of the blue, a phone call from my son, David. “Dad,
would you like to meet me in Phoenix January 16? I’ll be there on business but we could hit a couple of the auctions.” A no brainier.For the car guy or girl, auction time in Phoenix is a Mecca.
Beginning Monday, January 14, and continuing for two weeks, six auctions are scheduled – about 2500 collector cars in one location to be viewed, touched, sat in, and, for the owners, hopefully sold. My task – plan the visits, working around my son’s business schedule. My only experience was several Kruse auctions here in Tulsa and many years ago in Atlanta. No preparation for what l ay ahead.Where to begin? Fortunately, Sports Car Market
magazine published a supplement to their last issue. “Insider’s Guide to the Arizona Auctions,” that provided websites and phone numbers. I decided to prepay bidders’ passes for three of the auctions, an expensive and as it turned out, necessary expense. I DID NOT buy these for Barrett-Jackson; the only advance bidder pass cost $500 for two persons. While valid for the entire six days of the B-J auction, it didn’t appear to be cost effective since we decided to sample as many as we could attend.We did visit Barrett-Jackson; it’s a spectacle and event
that should not be missed. Imagine over 1000 collector cars of all types and vintages, displayed under a series of tents. A separate auction hall that’s at least as large as the Expo Center. All kinds of auto-related booths, and dozens of food stands – from tacos to fine dining. Consider – ALL CARS ARE NO RESERVE!! It’s a feeding orgy as typically hundreds of bidders are present (out of about 5000 registered) at any one time – while there may be 5 or 6000 spectators. Over the week’s time about 250,000 total admissions will be sold. It’s the place to be if you’re buying, perhaps not if you’re selling. But you will get maximum exposure to potential buyers, if not maximum effort from the auctioneer.We were there for about6 hours Wednesday afternoon, with only about 30 minutes actually watching the auctions. Our impressions, later verified by others, it was a “buyer’s market,” with prices perhaps 30% less than expected. Of course, there were exceptions, but judicious bidding, especially early afternoon on weekdays, could result in a below “market” purchase. From Barrett-Jackson off to Russo & Steele, just a couple of miles away, for their opening gala. Incredible event – exceptional food, and extraordinary mixture of attendees, from car guys in somewhat greasy overalls to Phoenix’s elite, in ball gowns and tuxes.
Thursday was a necessary “sleep-in” day and we got to Russo & Steele about noon to preview the cars – about 500 in all – mainly American muscle, but with a nice sprinkling of Ferraris, two beautiful Lamborghini's, a number of Jaguars and a couple of Alfas. Russo & Steele is an intimate atmosphere, not like the cavernous Barrett-Jackson. Bidders & viewers warm around the cars, drinks and food are freely available; the side men and women call people by their first name when they bid. The entire four-day event is orchestrated by Drew Alcazar, the implausible high energy owner of R&S. Unlike BJ, most of the cars have reserves, but watching Drew work on owners to lower their reserves is almost worth the entire admission. We were so engrossed that we missed the opening gala for the RM Auction, which was our main destination the following day, Friday.
Friday turned out to be a very busy day, with a business meeting at 7:30, a Corvette breakfast seminar, THREE auctions, and a business dinner meeting. Thankfully, the supplier’s salesman with whom we had dinner was formerly a Corvette owner, and it didn’t take much persuasion to get him to accompany us to Russo & Steele for the evening. But I’m getting ahead of myself. (cont’d on page 3) Breakfast at Russo & Steele for the Corvette Seminar. Then to Silver Auctions, about an hour east of Phoenix in Fort McDowell. This is the budget option, bidders’ passes are free; admission runs $25 for the entire four days. The cars reflect the low budget option – generally American street cars, some muscle, and a smattering of others. I was there to bid on lot #1, a 1984 Maserati Quattroporte with 30,000 miles. A real oddball for that auction, and I figured a bid of about $10 -$15,000 might do it. (Price guides – a necessary accessory –listed a Q4 in #2 condition to be in the $9600 - $12400 range, while a #1 would top at $19,000.) Boy, was I off-base! The bidding topped at 28K, while the owner held out for $35K! A briefing on auction selling and buying. Sellers pay an entrance fee, generally $500 - $1000. Then, if the car sells they pay 7-10% of the selling price, while the winning bidder pays another 9-10%!. Figure that on average – the auction company collects 19% of the selling price.
We sat at Silver for another hour or so, and decided our time could be better used elsewhere. But if you’re local, it’s a great place for unusual daily transportation. Consider a 1984 Cadillac Deville, with 34,000 miles for $2400. Off to RM Auctions – from the budget to the elite. RM’s 280 page 4-color catalog is $75 by itself! This is the high dollar European and American classic car venue. British auctioneer, deluxe surroundings, very refined. The auctioneer would turn to a bidder, “Your turn, sir. Do you need more time?” A number of telephone bidders, especially for the rare and high dollar items. Top sale was a 1934 Packard with a Dietrich body - $2.035 million. Or if you wanted American for slightly less, the 1929 Duesenberg Model J was available: $1.760 million. A 1966 Ferrari 275 GTB could have been yours if you wanted to bid against the $1.375 winning bid. You get the general picture. But there were some possibilities for us “common folks.”
The opening car was a 1960 MGA coupe – probably one of the best in the world – a “reasonable” $26.400. All the auctions featured American pick-ups. Here there were a 1948 Mercury, a 1952 Ford, a 1957 Chevy, and a 1941 Dodge (with a “rare Inferno recirculation hot-water heater”) ranging 30 - $50K. My bids: 1970 Ford Torino Cobra 429 SCJ; the bidding had stalled in the high 20’s. Simply the wrong car for this venue. The guides list this as a $50-60K car; unfortunately everyone has the same guides. It was bought as far as I could tell by a dealer for $46,750. Gotta be among the best buys of the week. I also bid on the last lot of the day – 1974 Porsche Carrera Targa – average car, listed in the price guides for $25-35K. Went for $30,250. Jaguars included a 67 OTS at $140K and a 54 120 roadster at $159,000. Back to Russo & Steele for the evening entertainment.. Incredible. A really hot blonde, tattooed ALL OVER, danced next to the cars as they were brought into the arena. Next day’s rumor, it was really body paint, and she was hired by Drew. Whatever, I hope she’s there next year!
Last day – Saturday – off first to another high dollar auction – Gooding, again $75 for the catalog. We missed the previous day’s viewing and when we arrived found that viewing was basically closed day of the auction. But our compensation was the best champagne breakfast I have ever had!. Again, a very British atmosphere, but not as refined as RM. Goodings bills themselves as Ferrari specialists, and they didn’t disappoint – 8 of the 72 lots had prancing horses on their sides. And we’re not talking Dinos! Top sale of the day, and tops for the weekend, 1959 250 California spider - $3.3 mil. Alfas from the ridiculous to the sublime. Opening was a pretty trashy 1961 Giulietta – decent paint but wrong engine/transmission, rusty underneath. I had wanted to bid but it was scary. Unbelievable winning bid $30K – someone in audience who thought price was too low and bid from afar. We heard later real buyer remorse. Other Alfa – 1932 6C 1750 spider –only $1.54 mil.
Some cars out of place – and bidding stalled. I thought about a remarkable 1963 Buick Riviera, but so did a couple of other folks. I bid 28K on a terrific 1966 Olds Toronado ($28 vs. winning $36), thought about 1959 Cadillac Coupe de Ville –25K miles and lusted after a 1963 Triumph TR4 Surrey Top –national 1st place winner ($40K). Also bid on a radical custom, based on a 1959 Plymouth Fury – well over $100,000 in build receipts, incredible paint – numerous awards, that went for 54K. At Russo & Steele this was at least a $75K item. Finally, a very ordinary TR6 – usually found at British Iron venues for asking price of $15,000, sold for 24 thousand. Story about the Cadillac. Absolutely wrong venue –bidding stalled low 20s. Just as I raised my paddle the guy in front of me bid; he eventually was high bidder @ 46K. Same guy that bought the 3.3 mil Ferrari!
Three Jags – 65 coupe at $90K, 53 OTS - $101,000, and a 67 roadster for $137K. Last day – back to Russo & Steele. Two cars slated at plus 11PM that might be possible – 69 Alfa spider, above average repaint, very little chassis rust and no apparent bondo, still with Spica and written instructions how to start & not flood engine! Electronic ignition replaced the distributor, which was in the trunk. Engine generally unkempt – scary without any receipts but I figured $12K would be reasonable. Other was a 1969 Fiat 2000 spider, 8000 miles.
If I couldn’t buy the Alfa then a few thousand for a driver – one that Joan could handle easily – would be solace. The boat tail went for $18K, and the Fiat $13K. A neat thing about Russo & Steele is that ‘no sales” get put back on display, with high bid versus reserve listed. It’s possible to negotiate the commissions – almost to the point of no commission. For example, David really lusted after a 1966 Malibu SS 396 convertible, reserve of $50K vs. bid of 34K. Owner/dealer said we would have to go through Russo & Steele since he was regular customer (other no-sales were not so loyal). Told us that R&S knew his minimum was $33.5, and that R&S would take $34K from us – just a $500 fee. Really thought about it –price guide $44-50K. Was it tiring? – you bet.
Are we going to go back next year? – we’re planning on it, hopefully with spouses. Car people NEED to do this – at least once. Dress warmly – it gets cold in the desert, and really comfortable shoes necessary. If you’re buying, and can sit for long hours, Barrett-Jackson probably best bet. If you’re selling choose your venue and if possible, your time slot to be evenings 6 – 9. Came within 10 minutes of buying the Malibu. One of the last lots of Saturday night was a 1969 E-type coupe (not 2+2), all original, not restored except for slight repaint of the bonnet, 55,000 miles. Most everyone too drunk and/or too broke to notice – especially after the $200,000 Corvettes and Mustangs. Only two dealer bids. It’s now on the truck to Tulsa.