Sales down sharply at Monterey auctions

[1935Packard]

https://journal.classiccars.com/2019/08/18/monterey-auction-sales-suffer-embarrassment/: 

 

The 2019 Monterey Classic Car Auctions wrapped up Saturday evening with total preliminary sales coming in at only $245.5 million, a reduction of 34 percent compared with the 2018 totals. 

“Whether it’s threat of recession, broad economic volatility or too many cars crammed into too few hours, there’s no denying this year’s Monterey Auction Week results were depressed when you compare the results to recent years,” the Hagerty Insider reported as the auctions ended. 

“Although a few more major sales will likely finalize over the next day or two (as post-block deals are consummated), the preliminary totals fell short of expectations and lagged behind 2018 results of $370 million by $125.4 million (-34 percent). 

“This amount is the lowest tally since 2011’s $197 million,” added Hagerty, which monitors all of the major auction venues, in the case of Monterey Car Week, there were six sales taking place over a three-day span.

Hagerty added at average sales price, media sales price and sell-through rates were all down in 2019 compared to year-ago numbers, as was “performance against estimate,” which tracks high bids. 

 

Total sales: $245.5 million  (2018 total sales: $370.9 million)

Average sale price: $319,610 (2018 Average sale price: $436,849)

 

Edited August 19, 2019 by 1935Packard (see edit history)

[Steve_Mack_CT]

Sure seemed tough when one removes late model Ferraris, Porsche and race cars from the mix.  Many of the early cars that sold just made reserves.  Hope you and the family had fun though!

[mercer09]

as Steve said- would be nice to take a side by side list and compare what was truly offered..............

[Walt G]

Perhaps the comment "to many cars crammed into to few hours "  and add with unrealistic expectations for price ( or estimates of what a vehicle will bring) once you add in the sales commission is the reason?  To all of that also add state sales tax if there is any, once you bring the car home and try to register it. ( I had to take that into consideration when I bought a car at auction in 2016 in Ct. and then went to register it in NY state where I reside - final total for the car cost a lot more)  All things eventually "top out" someplace. Now if we all could be made aware of what some of the cars did indeed sell for after the auctions in private sales perhaps that would give us a better view of "real" value in today's economy.

[trimacar]

Does it seem ironic that the phrase "only 245.5 million dollars" is being taken as a negative for the hobby? 

 

The bidder's speak with money, regardless of auction house estimates.  

[edinmass]

Overall I didn’t see any cars getting dumped or selling at huge discounts from the auctions I attended. There was a lot of “junk” meaning cars with problems and issues.......they did NOT do well. Most of thr pre war stuff was “middle of the road”  with a few selling for much more than I would have expected. Only saw one very nice car that I would call decent and well done sell for what my opinion is short money. It’s mostly perspective.............common run of thr mill stuff isn’t hitting it out of the park........I did see lots of optimistic reserves and estimates................I think I would call the market temperature “mixed” and “flat” right now.

 

 

Also.....supply and demand seemed to be an issue......lots of supply of very similar cars...........Porsche, Jaguars, and Ferrari's seemed to be EVERYWHERE........many were very nice and well done......the supply seemed endless.

Edited August 19, 2019 by edinmass (see edit history)

[60FlatTop]

There is a story about a young reporter interviewing a mid-west farmer about wheat production. The farmer was quoted in the article "We didn't expect it to meet our predictions".

 

 

6 hours ago, 1935Packard said:

Average sale price: $319,610 (2018 Average sale price: $436,849)

 

Private hobbyists?

Reminds me of a time the accountant asked about a  net neutral withdrawal and deposit in one of my business accounts. My wife inadvertently blurted out "Oh, that's for the Jaguar". I don't sell cars. Boy, did I get a lecture!

Bernie

[greenie]

Given the near circus atmosphere at some sales, you would wonder why these blue chip cars don’t change hands exclusively at private treaty. Perhaps the auction companies need to look inward at their productions and make the experience more attractive to both buyer and seller. Just my 2 cents.

[alsancle]

BJ is a circus but they aren’t at Monterey.  Gooding, RM, Bonhams,  etc are fairly well organized and orderly.   I can make arguments for and against buying and selling at one if these auctions.  I can only make an argument for selling at BJ.

[Matt Harwood]

Every year people try to divine what the results of the Monterey sales mean. They do it in February after the Scottsdale auctions, too. It means nothing in relation to the health of the hobby or the economy or how interested people are in old cars.

 

What it might reflect is the quality of the cars on offer and that the massive push to do more and more auctions has nearly sucked the well dry and most of the good stuff has already traded hands and is off the market again. The only other factor that comes to mind is the massive hiccup the stock market took last Wednesday which probably chilled more than a few guys at Monterey. Though they are recession-proof for the most part, a huge drop in the Dow will make them "feel" less wealthy and may cause them to scale back their purchases, particularly if they feel as if there are more such "hiccups" on the way. I know that my step-father has more money than he'll ever spend and the daily ups and downs of the market give him fits even though he knows it is rarely permanent. It nevertheless makes him second-guess himself when he "loses" tens or hundreds of thousands of dollars in a matter of hours, even if he makes it up the next day. I am quite certain he is not alone in feeling like that.

 

There are also probably a finite amount of ultra-wealthy guys with mega-collections who are still missing that one elusive piece. If you already own 600 cars, is that next one really going to give you the same thrill? Are you going to fight to own it? Meh.

 

But none of this really means anything to the hobby, and certainly not to anyone with a net-worth under eight figures. I sure wish everyone would stop treating this hobby like a business or the stock market.

[60FlatTop]

1 hour ago, Matt Harwood said:

I sure wish everyone would stop treating this hobby like a business or the stock market.

 

Only to the extent that selling hobby stuff supports your own personal hobby needs.

 

That has been working for me over the last half century.

 

And  would love to be lumped in with that group of eccentrics of the "50 and '60's, rather than the shrewd investors that showed up with the end of the gold standard.

 

Bernie

[30DodgePanel]

I doubt the stock market plays much of a role in the grand scheme of things. 

Strong gains are always had in the bull or bear markets, and as most of you know, sometimes even more so in the downturns

as recessions are opportunities for most of them to consolidate and even maximize and position for the next boom.

 

Unfortunately, recession talk, and market drops only make some of them smile...

It must be the supply and quality as previously pointed out.

 

 

[jerry k]

I basically agree with Ed. But would add that sitting through 20+ high performance foreign sports cars between each prewar Classic is painful for me. Prewar Classics were really an afterthought, thus I don’t think their auction prices mean much. 

[dalef62]

So they say that sales were down?  Not on this 1951 Crosley, sold at Barrett-Jackson for $8,250.00

https://www.barrett-jackson.com/Events/Event/Details/1951-CROSLEY-WAGON-199101

Then sold at Monterey for $42,500.

https://rmsothebys.com/en/auctions/mo19/monterey/lots/r0130-1951-crosley-cd-super-station-wagon/789836

Looks like the market is strong for Crosley's.

And the restoration in not excellent.

[58L-Y8]

Oh, Boo-hoo.  I know, sorry, that's not nice....