In the classsic car auction world there are two metrics that count. One is the sales rate (the percent of cars actually sold) and the other is average price per lot sold.
On both metrics Gooding & Company leads the classic car auction world.
Sure there are other auction houses that sell more cars than Gooding. But nobody beats Gooding in terms of quality of cars. Founded not even 10 years ago, Gooding today is a major force in the classic car auction business with sales of more than $200m for 2013.
The man behind Gooding and company is David Gooding who is the co- founder and President of the California based Gooding & Company.
David Gooding grew up around classic cars. His father was the curator the famous ‘Harrah’s’ collection so it was natural that David Gooding grew up with classic cars, including a Ferrari 275 GTB/4 that his father bought in the 1970s. David began his career with Christies International more than 20 years ago before joining RM Auctions and finally decided to set up his own firm bearing his name. Among the notable cars David has sold include: A Bugatti Atlantic Coupe Type 57SC, the very special Mercedes 540 K ‘Von Krieger’ Model, and a fabulous Ferrari 250 Testarossa Protoytype Pontoon Fender.
While Gooding is well known for carrying out auctions at Pebble Beach California, Amelia Island and at Scottsdale, the auction house closes many deals we never hear about. This is for a good reason.
When clients deal with millions of dollars per car, they want discretion and thus David Gooding handles numerous sales (35% of total sales) on a ‘Private Treaty’ basis. For his outlook on the classic car market as well his favourite cars and what mistakes collectors should avoid – here is David Gooding in his own words:
LME: How does the classic car market in 2014 look like?
Gooding: It will continue to be very strong. This is led by a number of factors. Strong economic growth, low interest rates and lastly the acceptance of cars as a good investment but also for many collectors, cars have become a form of art.
Will it be the case of the best cars holding their prices while the mediocre cars and rest get left behind?
Gooding: Yes absolutely. Longer- term exceptional cars like the 250 GTO, a 250 Testarossa, an LM or 8C Alfa will get more expensive. They just produced too few of them and the demand is growing. Having said that prices cannot appreciate at the rate they have (40% annually over the past few years). However interest in Classic cars just keeps growing. More fabulous events are being offered so much so that today you can attend a car event almost every single weekend around the world.
Where do you see demand coming from? New countries like China, India and Russia? Or just new collectors in important markets like Europe and the US?
Gooding: The classic car business has become a global market. Still the biggest market is the US. Collectors here are just more active. The highest turnover is in the US. Europeans are still not as active as the US market. The Asian markets are slowly becoming more active but there is still massive room for potential there.
Which brands are undervalued today? Maserati?
Gooding: Maserati is absolutely undervalued but so are Porsches and Jaguars. If you think of the power of D and C type Jaguars and compare prices to other brands like Ferrari from the period then Jaguar offers tremendous values. Even E-types are not yet where they should be in terms of prices. Another category that is undervalued are pre-war cars. They are very useable and often misunderstood. For example I personally own a 1914 RR Silver Ghost and in 16 days covered 2100 miles. I never had any problems! Owning a pre war cars is a wonderful and rewarding experience.
Is Ferrari overvalued or is it justified as their history is so strong and their cars just more delightful than other brands?
Gooding: No, Ferrari continues to lead the classic car market for a very good reason. There is simply nothing like a Ferrari. Take a 250 SWB. It is visceral and beautiful. You fire up the engine and it excites the senses, the engine is like music. The looks are fantastic. The feel is wonderful. There are VERY good reasons why Ferrari achieves one record price after the other!
Is it becoming harder to find good cars for your auction? It seems 4-5 years ago there were more SWB 250 for sale?
Gooding: It is indeed getting harder to find good quality cars. There simply are not many out there that meet our standards.
When I think of Gooding I think of quality. Was that your Nr 1 goal?
Gooding: Absolutely! This is why we don’t carry out auctions on a monthly basis like our competitors. We are limited in the cars we can offer as a result. Our main interest at Gooding is finding great cars that collectors will appreciate for the quality. This is our first and foremost goal.
Did you start Gooding because you thought the quality was not up to the high standards that it should be?
Gooding: My goal was always clear: To find the most unique and special cars for our clients. This takes time and while some other auction houses carry out auctions almost every other month, we prefer to do less. Not to say that the other business model of many auctions is wrong- it is just not right for us.
What differentiates Gooding?
Gooding: Well firstly quality – but also transparency. We tell the story openly and fairly.
Has the Internet become an opportunity or threat for you?
Gooding: The Internet has been a huge opportunity for us but having said that – we value the personal interaction in this business. It is for this reason that we do not allow on-line bidding. We want to know our clients as much as possible and feel also the story about our cars are best told in person.
You are mostly a US player doing auctions only in the US. Why do you leave the European market out?
Gooding: Well we are familiar in doing auctions in Europe. We have done them before. But we only do events /auctions that present a real value added for our clients. So while we do ‘Private Treaty Sales’ for our European clients and sell to Europe, we chose only to do auctions in the US.
What is the most memorable car Gooding has sold?
Gooding: Many come to mind! The Duesenberg ‘Mormon Meteor’ sold in 2004 for $4m was a clear record for a US car at the time. It is a 400hp car that averaged 135mph in 24hrs in 1935! The 250 Ferrari Prototype Pontoon Fender Testarossa sold in 2009 for $16m was also memorable of course. Lastly the 540 K Mercedes Benz ‘Von Krieger’.
Now and then you find a true ‘barn find’. What is the craziest barn find story you can tell us?
Gooding: Clearly the Von Krieger Special Roadster 540 K. I first stumbled upon this car in the 1990s working for Christies. Someone had faxed me a copy of the picture of the car. Can you believe it was locked away with other storage equipment?! The deal to close this car (the car was sold by us finally in 2012) took so long because the estate was very complicated. But it was worth the wait. It sold for a record price. The story of that car is a very human story and that is why so many potential buyers and the entire classic car world could relate to this unique car.
How did your interest in classic cars start? Are you also a collector?
Gooding: From my father- he was the curator of the Harrah’s collection. He had a 275 GTB 4 cam when I was small so that influenced my passion for classic cars. I grew up in automotive museums and in automotive libraries. Today my family and I collect and own a Mercedes 300SL. I also own a fine Aston Martin DB4- which was a one family owner car before I bought it.
What is/ are your favorite brands?
Gooding: Although I like many brands, I tend to fall in love with the individual car before brand. So to give you an example I like Aston Martin – but I bought the DB4 not because I am a huge Aston Martin fan necessarily but rather because the car fascinated me so much. It was a one owner car. So the cars often draw me because of their history rather than because they belong to a specific brand.
What do you do when you’re not working? What are your hobbies?
Gooding: I am interested in politics and art. I recently have also started to get excited about wristwatches. But my life really revolves around cars – even in my spare time. My wife and daughters love cars and we often go on rallies together.
What advice would you give to collectors starting to collect?
Gooding: Three things. 1) Ask as many questions as possible about the car 2) Buy out of passion of what you love- what speaks to you 3) Buy something because it moves you and buy the best example you can find. This way you can always pass on the passion to the next person someday.
What are the most common mistakes collectors make?
Gooding: They pay to much attention to what the potential returns on their investment. Instead they should be buying a car because they will use it. Cars are meant to be enjoyed. The memory and experiences you create using your cars is priceless. You cannot buy that.
Now I ask Gooding to answer these questions spontaneously;
- A 250 GTO for $100m in 2020 or 2030? 2020 -possibly before!
- The food in California or New York? California!
- One day spent with Uhlenhaut or Enzo Ferrari? Uhlenhaut
- A Maserati 3500GT or an Aston Martin DB4? A DB4- I am an owner
(David Gooding, President and Founder of Gooding & Company, driving the record setting 1958 Ferrari 250 GT LWB California Spider, which sold for $8,250,000 at Gooding & Company’s 2013 Scottsdale Auctions)
Image copyright and courtesy of Gooding & Company. Photo by Mike Maez.
